Financial Education for All

Financial education is a ‘buzz word’ frequently used by policy makers to remind about the importance of personal financial spending due to its importance for the public finance. According to World Inequality Report (2018), income inequality has increased in nearly all countries around the world (at different pace). Corruption, tax evasion and reduced tax compliance lead to 10% of world’s GDP to be held in tax havens.

The Mobility Era Game is developed from a PhD thesis that offers the first tax-benefit micro-simulation model for the income of cross-border workers. It shows how the differences in income and taxes between countries affect the level of social protection of individuals.

Principles in the game reflected in the PhD thesis:

• Life-cycle
• Statistics on average personal income level
• Average tax level personal income

The 21^st century is characterized by high mobility, high variation in social protection benefits of citizens across the world and high income inequality. “Confidence in public institutions is essential to ensuring fiscal performance and preserving the social contract.

Fiscal and monetary policies affect inequality not only because they have a direct bearing on income distribution, but also through their role in mobilizing resources for social policies, including social protection.

Choices regarding taxes and spending are, in fact, at the heart of the social contract. Trust in Governments and institutions is higher where taxes and social transfers are perceived to be effective and equitable (OECD, 2019d)“.