AI, Digital and Financial Literacy: Evidence from Turkish Youth

Abstract

This chapter provides a detailed, data-rich, and policy-oriented exam-ination of financial and digital literacy among the Turkish high school students, with particular attention to saving behavior, investment perceptions, and the growing influence of AI and digital technologies. Drawing on a modified OECD/PISA financial literacy survey administered to a younger-than-usual cohort, the chapter offers valuable evidence on early-stage financial attitudes, family influence, and the rather compelling technology use. The chapter’s primary contribution is micro-level evidence on financial and digital literacy among the Turkish youth. Empir-ical findings demonstrate powerful results including coexistence of high confidence, high digital engagement, and very low formal financial education. The chapter’s core strength lies in its originality of focusing on secondary-school students and in the breadth of contextual macroeconomic discussion linking micro-level literacy to national savings, fiscal discipline, and demographic change. Survey results demon-strate that students are highly engaged with digital technologies and new FinTech applications. However, formal digital financial literacy education and even family guidance are limited to none. Up to 69% of students have never heard about basic concepts such as interest payment, exchange rate, compound interest or stocks etc., at school or at any other formal setting. The ongoing AI and digital transformation era of the post-covid is another noteworthy theme. The paper underlines implications of novel AI applications and digitalization to improve financial and digital literacy. And means to decrease the twin deficits of fiscal and current account as well as means to improve sustainability and financial stability, among other macro goals.