Financial education, still an uphill road

The level of financial literacy in European countries is not encouraging. According to data published in September 2023 by Eurobarometer, only 18% of citizens have a high level of literacy (knowledge and correct behavior), 64% have an average level, and the remaining 18% have a low level. Also according to this survey, the top of the class are the Netherlands, Sweden, Denmark, and Slovenia, where over 25% of people scored high in financial literacy.

The Eurobarometer also highlights differences by age, gender, education and work performed. The figure that stands out above all is the high gender difference. 25% of men have high financial knowledge compared to the 13% of women.  

This unencouraging situation is not limited to Europe, but also affects the United States. According to the seventh edition of the Personal Finance Index (P-Fin), a joint initiative of the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business, there continues to be a significant gender gap in financial literacy. About 25% more men answered the questions posed by the questionnaire correctly than women. Also according to this survey, those with very low levels of financial literacy are over 4 times more likely to have difficulty making ends meet (44% vs. 10%); almost 3 times more likely to be in debt (34% vs. 12%); over 4 times more likely not to have enough emergency savings to cover a month’s expenses (56% vs. 13%); and over 3 times more likely to have to devote at least 10 hours a week to deal with problems related to personal finances (32% vs. 10%).