The discussion suggests that the understanding of the content of financial literacy varies depending on the context of the problem. Since we are talking about poor people with low basic skills, then financial literacy should include critical thinking so that they cannot be defrauded, good calculation skills and entrepreneurial skills. For people who want to feel generous and stable, financial literacy should include income and expenditure planning and a general idea of the mechanisms of financial circulation in society and the risks and benefits associated with them. People who want to improve their financial position would benefit from a deeper understanding of financial tools and the skills to evaluate and use them.

In the complexity of financial markets - and the complexity of the resulting decisions that one has to make - it is probably also difficult and possibly even counterproductive if financial processes are oversimplified. This could potentially lead to wrong and harmful decisions due to misguided confidence. While I do believe that basic financial literacy is key for everyone, e.g. for managing one's household budget, but also things like understanding the balance sheets of companies (e.g. if you need a construction company for renovation works of your house and you want to check whether the company is financially sound), there are certain limits to what is achievable. When it comes to decisions about forms of savings or investments, it becomes more complex already: for instance, having a savings account versus investing in ETFs; understanding what percentage of the profit on the private pension fund is actually left after taxes are deducted at the end; understanding how sustainable "sustainable banking" really is, etc. I find this article by the speaker Katarzyna Hanula-Bobitt very informative: https://www.finance-watch.org/financial-education-the-what-the-how-the-…. Trustworthy help and guidance are, therefore, very important, especially when it comes to more complex financial operations. These can't be replaced (entirely) by financial literacy.

Financial literacy is indeed crucial, and I wholeheartedly concur with the importance of learning about spending, saving, borrowing, and financial planning.

It's interesting how social media and various life coaches often advocate for living a lifestyle that aligns with one's desires. While this can be inspiring, it's essential to strike a balance between aspirations and financial reality. Many people may be tempted to take on loans or make extravagant purchases to emulate the lifestyles they see online, potentially overlooking their actual financial capacity.

On which policy level, you reckon, should this be tackled?

We havent  touch upon  financial literacy of our senior citizens. It is a great art , of  financial literacy for senior citizens whose retirement pension is about 400-500 EUR . Such situation is in Latvia.It would be interesting to learn their experiences how to manage so small financies to cover all life expenses.These also could be  called  golden skills to live economically and reasonably.

In today's complex financial landscape, possessing adequate financial literacy skills is not just a matter of personal finance; it's also a matter of social equity. Individuals who lack these skills can find themselves marginalized and excluded from various aspects of modern life that many Europeans often take for granted. This exclusion can extend to opportunities for housing, employment, education, and overall economic well-being.

I feel that, by equipping parents with the knowledge and resources to teach their children about finance, the project not only contributes to individual financial empowerment but might also promote a more inclusive society.

Johann, do you reckon it has the potential to break the cycle of financial vulnerability?

I got acquainted with the material posted on the website and saw a lot of useful things in them for talking about financial skills with children. but the skills are based in the family and this greatly affects the children's future skills as well. There are many generations that have been able to operate economically with their finances. In this case, Ilze Ivanova's comment about how Latvian seniors survive with low and very low incomes is important in Latvia. I work in the field of social support in the NGO sector and I deal with people whose income is between 150 and 250 euros per month. Basically, they save on health expenses, food and live in low-quality neighborhoods where it is possible to save as much as possible on expenses related to housing. These people can get social support by contacting social services, but often their awareness of support options is very low and they cope as best they can, losing much of their usual quality of life. Of course, among these people there are citizens who have reached this situation because of their lifestyle, but there are some seniors who could not get a higher pension due to changes in the state administration when the Soviet Union collapsed, the free market was created and they lost their usual jobs, but they were not ready to retrain. They took on low-paid jobs or worked without paying taxes at all. All this affected their social status at retirement age. of course, pension indexation is taking place in our country and the income of these people increases a little, but taking into account the total amount of financial expenses in the total amount, they do not gain anything more. What amazes and fascinates me the most is their ability to survive with the amount of money they have available... I agree that it is worth researching, but not to understand how they survive, but to prove that it is not a decent way for people to survive and they should be given more support without waiting , that they will request it themselves, because many are shy to do it, or cannot understand the bureaucratic rules for its preparation.

Thank you very much for bringing forward the project. I would like to add my response to the discussion during the live streaming that followed.

On a national level, the project aims to establish financial literacy educational programs for adults. We have engaged adult educators and finance experts in its development. These programs will undergo quality assurance and will be made freely available as a public good. They will be accessible to anyone involved in adult education within the field of financial literacy. What is the most important, the programs can and should be adapted to the specific needs of their recipients. The task of educational program providers is to customize the program to meet the participants' needs as much as it is possible.

Thank you for sharing this information!

It's great to see initiatives like this, especially in the context of economic and social uncertainties.

These key areas of financial literacy you've mentioned – managing finances and debt, financial planning, and awareness of risks – are indeed vital for individuals and families to navigate an ever-changing financial landscape.

Thanks for sharing the experience! It is really a complex approach !!!

This is very interesting, Dora, thank you for sharing it! Do you know if it's connected to a larger strategy on improving basic skills or life skills in a lifelong learning perspective?

Enquanto formadora da área de Sociedade, Tecnologia e Ciência (STC), no âmbito da formação de adultos, o portal https://www.todoscontam.pt/quem-somos é uma ferramenta à qual recorro com alguma periocidade, uma vez que permite dar uma visão prática aos seus utilizadores sobre a temática da literacia financeira tão necessária na atualidade.

Dear Ilze,

you're absolutely right; our fast-paced and ever-changing world demands continuous adaptation, including in our financial awareness. Financial literacy isn't limited to a specific age group; it should be viewed as a comprehensive system involving various contributors and learners. Teaching financial literacy across generations ensures that individuals are better prepared to navigate the complex financial landscape and make informed decisions in an evolving economic environment.

It's a collective effort that ultimately contributes to financial well-being and resilience.

Thank you for telling us about your project!

Your collaborative work is inspiring. The integration of sustainability into financial education for young people is a forward-thinking approach with the potential to create a more resilient and responsible financial ecosystem. It not only equips individuals with the necessary skills to navigate complex financial terrains but also fosters a commitment to sustainability that benefits society at large.

I'm curious to know more about the specific strategies or methods you've employed in integrating sustainability into finance skills development. Could you share some key insights or lessons learned from your project's implementation?

Hi Linda,

You raise an interesting point about the potential for higher returns through early financial education. It indeed prompts a crucial question.

Incorporating basic financial concepts into primary and secondary education can provide a strong foundation. However, it's also valuable to continue financial literacy education throughout one's life, adapting the complexity of the content as individuals grow and face more advanced financial decisions. 

So, the answer to your question depends on the context and the individual's current educational level and financial situation. Ideally, financial literacy should be a lifelong learning journey, with education tailored to different age groups and life stages.

I'd like to hear your thoughts on this matter. In your opinion, what age or educational level do you believe is the most effective starting point for teaching financial literacy? Are there specific strategies or approaches you find particularly effective for different age groups or educational stages?

Good question! I would say: at all levels, starting with preschool/kindergarten where concepts like "money", "to buy", "to earn", "to collect/save", "to exchange", "value/worth" can be learnt through play and usually kids love it and eagerly engage.

It's encouraging to see that a significant portion of respondents feel they have received sufficient or excellent financial education.

However, you're absolutely right; there is still a target audience that requires external advice to manage their finances effectively.

As mentioned during the discussion, to address this need, we have to consider tailored financial education programmes and outreach strategies for specific disadvantaged groups. Collaborating with community organisations, offering workshops, and providing easily accessible resources could be effective ways to reach and assist these individuals. The key is to ensure that financial education and advice are accessible, relevant, and responsive to the unique needs of different segments of the population.

But I would love to hear what our experts have to say to that!

What should be done to improve the level of financial literacy? Who would be the responsible body, as it seems that no one is really responsible of this area.

Dear Elga,

thank you so much for your comment. We were actually able to discuss this during the debate!

Hi Anita,

Jūsu norāde uz to, ka finansiāli mazāk aizsargātās sabiedrības grupas bieži ir mazāk informētas, ir ļoti svarīga. Regulējot ātro kredītu nozari un azartspēles un veicinot atbildīgu biznesa praksi, mēs varam palīdzēt aizsargāt iedzīvotājus. Jūsu minējums par sabiedriskajiem medijiem kā izglītojošas informācijas avotu ir pamatots.

Kā jūs iedomājaties veicināt izpratni par finanšu pratību un naudas ieguldīšanu sabiedriskajos medijos un izglītojošajos raidījumos? Vai jums ir kādi konkrēti priekšlikumi vai idejas šajā virzienā?