ICI Viewpoints

Every April, we celebrate Financial Literacy Month in the United States. But let’s be honest: there’s little cause for celebration when only 1 in 3 adults globally can answer basic financial questions. Even in the world’s most advanced economies, nearly half the population lacks the skills to make sound financial decisions.

This is more than a personal finance issue. This is a systemic policy issue with global consequences. Without meaningful financial education, we risk building capital markets that only a fraction of citizens can actually access or benefit from.

Financial Literacy: A Prerequisite for Market Participation

For decades, ICI has championed long-term investing as a pathway to prosperity for individuals and for economies. But without financial literacy, that path remains inaccessible to too many. From budgeting and saving to understanding risk and return, people need the tools to make confident, informed decisions about their financial futures.

At ICI, we are deeply committed to raising financial awareness in the U.S. and around the world. We offer financial education resources through two core platforms:

• ICI Education Foundation (ICIEF): Our nonprofit arm, dedicated to promoting financial literacy and investment education for individuals at every stage of life.
• Secure Financial Future (SFF): A national network of investors focused on safeguarding the integrity of investment funds. SFF promotes informed policymaking and provides accessible investment education to everyday Americans.

Japan: A National Strategy for Financial Empowerment

Among major economies, Japan has taken a particularly proactive approach to financial literacy. It is a model worth examining. In response to the shift from deflation to inflation and the realities of an aging population, Japan has made investor education a cornerstone of its capital markets strategy.

In 2024, Japan launched the Japan Financial Literacy and Economic Education Promotion Corporation (J-FLEC), which is a public-private partnership led by the Japanese government and financial industry associations. J-FLEC is working to expand access to financial education nationwide, offering practical resources on personal finance, investing, and long-term planning.

At the same time, Japan’s government is pursuing an effort to make financial literacy part of the national school curriculum—a progressive, forward-looking move led by policymakers including former Prime Minister Fumio Kishida. This initiative recognizes that financial literacy must start early and evolve with citizens throughout their lives.

These efforts are already showing results. The government’s expanded Nippon Individual Savings Account (NISA), a tax-advantaged investment account, is gaining significant traction. NISA is helping more households, especially younger ones, shift from saving to investing. Reforms to Japan’s individual and corporate defined contribution (DC) pension plans are also reinforcing the importance of long-term investment for retirement security.

ICI strongly supports Japan’s efforts from J-FLEC’s educational initiatives to the government’s commitment to lifelong investor education. Japan’s requirement that corporate DC plans provide ongoing investor education is particularly impactful and sets an example other jurisdictions could follow.

A Global Imperative

Let’s be clear: financial literacy is economic infrastructure. It’s not just about knowing how to budget. It is about empowering people to participate in modern markets, fund their own retirements, and hold financial institutions accountable. Without it, policies to expand capital markets will struggle to deliver inclusive growth.

At ICI, we’re proud to support initiatives that prioritize investor education. But we also challenge governments, regulators, and the asset management industry to think bigger. Let’s make financial literacy as foundational as digital literacy, embedded in schools, retirement systems, and national economic strategies.

Financial Literacy Month should be a global call to action. Because without financial knowledge, there can be no financial security and certainly no financial freedom.