The financial literacy of many Europeans can be improved. The European Commission concluded this on Tuesday from the results of the first European survey of financial knowledge and the way in which Europeans handle money. Less than one in five reached a high level.
The researchers presented more than 26,000 Europeans with five questions that gauged their theoretical knowledge of matters such as inflation and purchasing power, interest rates and the risks of investing. These were supplemented with questions about how they deal with their money in concrete terms, for example whether they ask themselves when purchasing whether they can afford the product, whether they keep track of their expenses and set long-term financial goals.
The poll concluded that only 18 percent of respondents achieve a high level of financial literacy. 64 percent reached an average level and 18 percent got stuck at a low level. The results differ greatly from country to country. The Netherlands (28 percent) has the most people with high financial literacy, Portugal and Latvia (11 percent) the least.
Need is high among specific target groups
In Belgium, 20 percent of respondents achieved a high level of financial literacy. At the same time, 22 percent of Belgians are classified in the low level category. Only in Finland (27 percent), Latvia (24 percent) and Spain (22 percent) is this group larger or the same size.
European Commissioner for Financial Stability, Financial Services and Capital Markets Mairead McGuinness speaks of “a wake-up call” for the Commission and the member states. “We need to do more together to improve levels of financial literacy,” concludes McGuinness.
The results indicate that the need for financial education is particularly high among specific target groups. Women, young people, people with a lower income and a lower level of education are on average less literate than other groups.
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