Financial literacy committee to present findings

An ad hoc committee set up to draft a national strategy to promote financial literacy is expected to present the findings of a central bank study during a webinar on April 15.

“According to scientific studies and statistics, the levels of financial literacy in Cyprus are considered quite low, especially in comparison with other countries in the European Union,” the committee said in a statement.

Citing international bibliography, the committee said financial illiteracy can have a negative impact on personal and societal prosperity.

A study conducted by the Technological University (Tepak) in 2018 found that just six per cent of a sample of 880 students were able to respond successfully to a questionnaire.

Students were asked to respond to six questions on basic concepts relating to the calculation of interest plus capital and compound interest, inflation, and its effects, the relation between risk and yield, as well as diversification of risk.

Only six per cent of the 880 were able to answer all the questions correctly.

The ad hoc committee was set up last December and is under the guidance of the central bank. Officials from the finance and education ministries, the securities and exchange commission, Tepak, and University of Cyprus are also taking part.