Financial literacy is a major priority, President says

Despite the economic progress in Cyprus, financial literacy levels remain below the EU average, President of the Republic Nikos Christodoulides has said, noting that the government has set the issue of financial education as a major priority.

Speaking at the 1st International Conference of the Cyprus Financial Literacy and Education Committee (CyFLEC) entitled “Financial Literacy for the Youth-Preparing the Next Generation”, that took place in Nicosia on 13 March, President Christodoulides said that "considering that in our country we are below the EU average, this essentially means that many young people are entering the job market without knowing how to manage a budget, evaluate a loan or invest properly. It means that families are accumulating debt without fully understanding how interest rates work. It means that many citizens are vulnerable to financial fraud, misinformation and wrong financial decisions," he said. 

Recognising, therefore, he added, the importance of financial literacy, the government has set financial education as a major priority. In this context, he said, in September 2024, the Ministry of Education introduced the Financial Education and Literacy Program for third-grade students of the Gymnasium. 

He pointed out that students are very interested in those classes, adding that more than 8,000 students in public and private schools have benefited from this program. The goal of the program is to give young students basic financial management skills, ensuring that they will be ready to manage the financial challenges of modern life from an early stage in their educational path, thus building the appropriate culture, the President noted. 

Strengthening financial literacy in Cyprus is an urgent need, Governor of the Central Bank of Cyprus, Christodoulos Patsalides said, speaking at the seminar also in his capacity as President of the Cyprus Financial Literacy and Education Committee (CyFLEC).

Recalling that a state institution responsible for the implementation of the National Strategy for the Promotion of Financial Literacy and Education was activated in Cyprus on June 17, 2024 stressing that the need to strengthen financial education in Cyprus is imperative, and gave as an example a survey according to which the average financial literacy in Cyprus is only 56%, in a sample of people aged 15-79, while only 17% of the participants are considered to meet the basic level of proficiency. 

Even more worrisome, he said, is that 39% stated that at least once in the last 12 months they could not cover their expenses with their income. 

He also noted that four specialised Thematic Working Groups have been created at the CyFLEC, with specific goals, selected on the basis of best international practices: the evaluation and updating of the National Strategy, the promotion of financial literacy in public and private education, lifelong learning, and the strengthening of digital financial literacy.

Addressing the seminar, Minister of Education Athena Michaelidou said that the government has placed Education at the center of its efforts from the very beginning, aiming at the transition to a modern, effective school. 

She noted that much has already been done and much more will be done to this end, adding that the Ministry of Education, adopting the national strategy for financial literacy, introduced with a decision taken by the Council of Ministers during the current school year, an intervention program for financial literacy, in the 3rd grade of High School.

Throughout Cyprus, the modules of personal budgeting, savings and borrowing are presented, using examples, interactive tasks and discussions, she added.

"The first indications from the implementation of this innovative program and the participation of students are already very positive. We have already decided to introduce the subject in both primary and all high school classes starting next school year," she said.

(Source: CNA)