Lessons on financial literacy will be introduced to public schools this year, the government following the EU-wide trend of giving youngsters a basic financial education that would help them understand economic concepts such as budgeting, saving and responsible borrowing among other things. For this year, the lessons would be for third grade gymnasium students who will have three periods on financial literacy in the first term and another three in the second.

The education ministry told the Sunday Mail, which carried out an extensive section on financial literacy in its last edition, that the primary aim is to enable youngsters to acquire the financial skills to manage personal and family (by offering advice to their parents) finances. This may sound rather optimistic, but the ministry appears to be taking every step to make the initiative successful. It will have an evaluation system in place to establish the programme’s effectiveness and has also put a teacher training course in place to help teachers make the subject more accessible and interesting.

These are the right steps, but only the evaluation system will show whether young teenagers would show any interest in financial literacy or doze off during classes. While it is important to introduce financial education at a young age, the education ministry, in cooperation with one of the universities, should perhaps also look at the idea of having a financial literacy programme for adults, as well. A nominal fee could also be charged to ensure the course is treated as something of value.

There is a big need to offer such a programme for adults. According to an OECD survey in 2020, about 50 per cent of EU adults lack a solid grasp of basic financial concepts, while Eurobarometer found that only 18 per cent of EU citizens possess a high level of financial literacy. In Cyprus, a survey of 18- to 24-year-olds found that 36.9 per cent displayed a adequate financial literacy, but there were figures for other age groups, which would have been interesting to see.

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The European Commission, which has undertaken several initiatives to enhance financial literacy, does not restrict these to schools. “The dream, the vision, is to see a very strong retail finance culture in Europe, where all citizens are financially literate,” said the European Commissioner for Financial Stability Mairead McGuinness. While this may be an over-ambitious objective, it nevertheless highlights the need to extend financial education to all age groups, something our government should take note of.

The increasing complexity of financial products combined with the easy access to all types of investment opportunities, offered by the internet, makes financial literacy and imperative these days. DIY investment, as it is known, grew significantly during the pandemic and has not subsided, even though 70 per cent of DIY investors are known to lose money. Most of these investors are adults to whom access to a basic financial education would offer a certain level of protection.

This is why the government, after the introduction of financial literacy lessons in schools, must consider a similar programme for adults.