A Cross-Country Comparative Study on the Impact of Institutional Distance on Adolescents’ Financial Literacy: Based on the PISA Database

As one of the core competencies of citizens, financial literacy is particularly important under the current global economic context, and adolescents’ financial literacy is closely related to the future development of a country. Based on the financial literacy assessment data of the Programme for International Student Assessment (PISA) from 2012 to 2022, this paper takes Belgium, which ranks highest in comprehensive scores, as the benchmark country. The analysis shows that institutional distance has a strong inverted U-shaped relationship with the financial literacy of 15-year-old adolescents in participating countries. That is, as the institutional difference between a participating country and Belgium increases, adolescents’ financial literacy first rises and then declines.

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