Education ministry’s new curriculum aims to make the next generation financially savvy

Concerns about low financial literacy among Cypriots prompted the ministry of education to introduce a lesson about financial matters into the school curriculum.

These concerns were illustrated by a survey which found that only 36.9 percent of the 18 to 24 age group displayed adequate financial literacy.

“Given our recent economic challenges, equipping young people with financial literacy is not just beneficial, it’s essential,” a ministry official told the Cyprus Mail.

The ministry has joined forces with the Cyprus Financial Literacy and Education Committee (CyFLEC) and financial authorities including the Central Bank of Cyprus, the ministry of finance and Cyprus Securities and Exchange Commission (CySEC) in its strategy to integrate financial literacy into the national curriculum. This strategy, sanctioned by the Council of Ministers in June 2022, aims to boost financial education.

The curriculum change aims to enhance sound financial decision-making. According to studies by the Organisation for Economic Cooperation and Development (OECD) International Network on Financial Education, financially literate individuals not only manage personal finances better but also have significantly improved job prospects and earning potential.

Moreover, the initiative is designed to have a generational impact, improving financial literacy among adults through the passing of knowledge from students to their families and social circles – a crucial measure in an era dominated by rapid digital transformation and growing threats such as digital fraud and data theft.

The ministry’s objective is to provide young Cypriots with the necessary skills for both personal success and the resilience to cope with the rapidly changing demands of the economy.

Measuring the success of financial literacy programmes

Post-implementation, the success of the financial literacy programmes across Cypriot schools will be rigorously evaluated, said the ministry official, explaining that a detailed questionnaire was developed in collaboration with the Paedagogical Institute and public universities.

 “There is a questionnaire designed to measure students’ understanding of essential financial concepts, tracking the impact of the programme effectively,” the ministry official explained.

This assessment process would allow the ministry to make adjustments or changes to maximise the programme’s effectiveness.

Global inspirations, local applications

The design of Cyprus’ financial literacy programme draws on successful international models, especially those from the European Commission and the OECD’s International Financial Education Network. “This blend of international best practices with local research ensures our programme is both globally informed and locally relevant,” said the ministry official.

This curriculum is not only informed by global best practices but also tailored to the unique economic landscape of Cyprus, with academics from the Cyprus University of Technology and the University of Cyprus (UCy), which offer a course on financial education, contributing to the programme’s makeup.

There is now a teacher training programme for financial education which will help teachers make the subject more accessible and interesting. “Our goal is to ensure that teachers are not only knowledgeable but also passionate about financial education, enabling them to inspire their students,” the ministry official said.

From the new school year, the financial literacy programme will be a structured part of the curriculum for third-grade gymnasium students. This programme is scheduled to be held over six teaching periods – three in the first quarter and three in the second quarter of the school year. The primary aim of this initiative is to enable youngsters to acquire the necessary financial skills to manage their personal or family finances.

For now, financial literacy lessons are not exam-based, but have been structured to be both engaging and impactful. The programme is designed to emphasise the practical importance of financial knowledge through real-life relevance. “We want students to see the relevance of financial literacy in their daily lives and future careers, not just as another subject they have to learn,” said the ministry official

By encouraging students to critically analyse the financial behaviours in their environment, the programme will also actively involve them in the learning process. This engagement is further enriched by discussions of real cases, including students’ own financial experiences and decisions related to household financial management and planning.

Looking ahead, there are broader plans to extend financial literacy education within Cyprus’ educational framework. A dedicated one-week lesson will be introduced in the third grade, covering more extensive financial literacy concepts than the current programme’s modules on personal financial management, savings and borrowing. “Introducing financial literacy at an early age will lay the foundation for more informed and responsible financial behavior throughout life,” the education ministry said.

Additionally, the ministry has established collaborations with key financial entities to shape its financial literacy curriculum. This includes partnerships with the Central Bank of Cyprus (CBC), the Ministry of Finance, and the Cyprus Securities and Exchange Commission (CySEC), all integral parts of the Cyprus Financial Literacy and Education Committee (CyFLEC). “These partnerships ensure that the curriculum is not only theoretically sound but also practically relevant, drawing on real-world financial expertise,” said the ministry.

The ministry is also leading an initiative to deal with low digital financial literacy rates in Cyprus. It chairs the newly established “Financial Literacy in Public and Private Education” committee of the CyFLEC, coordinating all related activities. “Improving digital financial literacy is essential in today’s tech-driven world,” a ministry representative said. “Our initiatives aim to protect citizens from digital fraud and empower them to make informed financial decisions online.” This includes integrating financial literacy courses in schools, starting with targeted programmes.

The ministry has a clear vision for the long-term integration of financial literacy within its educational framework, closely aligning with broader educational objectives. This initiative supports the ministry’s goal of providing comprehensive educational programmes, ranging from general education to specialised skills development. “We envision a future where financial literacy is deeply ingrained in our culture, leading to a more economically stable and savvy society,” the ministry representative concluded.