STEP-BY-STEP MODEL FOR IMPROVING FINANCIAL LITERACY

Abstract

This article proposes and substantiates a step-by-step model for improving financial literacy that integrates cognitive, behavioral, and contextual components into a single pedagogical sequence. The model begins with diagnostic assessment, proceeds through conceptual understanding, budgeting and cash-flow management, savings and debt strategies, and culminates in digital finance competencies, risk management, and long-term planning. It is grounded in evidence from international measurement toolkits and behavioral economics, emphasizing experiential learning, micro-habits, and feedback loops. A mixed-methods evaluation design is outlined to track knowledge gains, behavior change, and financial well-being indicators over time. The discussion offers implementation guidance for schools, universities, and community programs in resource-constrained settings, arguing that consistent practice, timely nudges, and context-relevant materials are decisive for sustained impact.