ABSTRACT
This chapter presents empirical results verifying the following thesis: 'In the European Union numeracy skills are mainly determined by Education factors but the role of Financial Development factors are also noticeable'. It provides a mathematical score as a proxy to financial literacy and a large set of macroeconomic, financial development and education indicators between the 2003 and 2012 time series. The costs of financial illiteracy might have far-reaching consequences especially in the face of overwhelming financialization, which led to an enormous increase in the complexity of financial products, as well as to shifting responsibility for financial decisions from state to free market. The high level of financial literacy can contribute to more effective allocation of financial resources, protecting the stability of the economy and reducing the income inequalities. According to Martin Arnold, 'financialization is a phenomenon that has led to the embedding of the financial world into people's everyday lives'.
