Coordinating financial education and literacy.
Date: 2020-04-20
Institutions: European Banking Authority
Subjects: European Banking Authority, access to information, consumer information, decision-making, education, financial risk, financial services

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COORDINATING FINANCIAL  
EDUCATION AND LITERACY

MARCH 2020

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What is financial education & literacy 

and why is it important?

An essential factor contributing to people’s ability to 
make sound and well-informed financial decisions 
is their level of financial literacy. Financial literacy 
is  the  knowledge  and  understanding  of  financial 
concepts,  as  well  as  a  combination  of  awareness, 
knowledge, skill, attitude and behaviour necessary 
to  make  sound  financial  decisions  and  ultimately 
achieve individual financial wellbeing.

Financial education is the process by which financial 
consumers improve their understanding of financial 
products, concepts and risks, develop the skills and 
confidence to become more aware of financial risks 
and  opportunities  to  make  informed  choices,  to 
know where to go for help, and to take other effec-
tive actions to improve their financial well-being (1). 

Financial education and literacy can help consum-
ers  plan  and  manage  their  income,  understand 
the importance of saving, make responsible use of 
credit, invest efficiently, reduce fraud and mitigate 
security  risks.  As  a  result,  education  in  the  sector 
can act as an important complement to the regula-
tion and supervision of financial institutions.

(1)  OECD (2005) Recommendation on Principles and Good Practices 

for Financial Education and Awareness

 
 
 
2

What is the EBA’s role?

One of the EBA mandates is to ‘review and coordinate’ 
financial  literacy  and  education  initiatives  by  national 
authorities. While this mandate is more limited than for 
other areas, where the EBA is required to contribute to 
the convergence of practices, the Authority has taken a 
number of steps aimed at educating consumers across 
the EU, on the same topic, in a consistent way. 

In March 2020, the EBA published its second Financial 
Education Report 2019/20. The Report is based on the 
EBA Financial Education Repository, which consists of 
more than 120 financial education initiatives taken by 
national authorities carried out primarily during 2018 
and 2019. 

The Report describes the most common approaches 
used by national authorities and the lessons learned 
and  experiences  gained.  Compared  to  the  2018/19 

report, the most recent edition includes new aspects 
such as the interplay between financial education and 
financial conduct regulation and supervision of the fi-
nancial system. In addition, it highlights the increas-
ing role of financial innovation and the growing focus 
on specific target groups, such as children and youth 
and  elderly.  It  also  identifies  a  number  of  develop-
ments that could influence future financial education 
initiatives, including behavioural economics, sustain-
able finance, and advanced analytics and big data.

In  addition,  the  EBA  developed  a  one-page  informa-
tion  sheet  providing  consumers  with  tips  to  protect 
themselves when choosing online or mobile banking 
services. This document has been translated in all EU 
official languages and been disseminated by the na-
tional authorities in all Member States. 

How do EU citizens benefit from the EBA actions?

The EBA is committed to continue coordinating nation-
al  financial  education  initiatives  at  European  level  in 
order to promote financial education and literacy and 
help,  among  others,  improving  consumer  protection 
and the responsible consumption of financial products.

The EBA information sheet will help consumers make 
better  and  more  informed  choices  when  choosing  a 
service or when concluding an agreement for a par-
ticular service. It focuses in particular on:

reading and making sure to understand the 
terms and conditions before signing; 

The  Financial  Education  Report  2019/20  provides  an 
opportunity for individuals interested in financial edu-
cation to learn more about the work carried out so far 
in this area at European level and the lessons learned 
by  the  national  supervisory  authorities.  The  EBA  Fi-
nancial  Education  Repository,  enables  EU  citizens  to 
obtain further information on the financial education 
and  literacy  initiatives  launched  by  the  national  au-
thorities in their countries.

paying particular attention to all fees and 
charges; 

Useful links:

thinking about security;

filling a complaint in case they believe that 
their rights have been denied.

Consumer corner
Financial education
Personal Finance at EU level

Stay in touch

https://eba.europa.eu/

 EBA_News

 company/european-banking-authority

© EBA, 2020
Luxembourg: Publications Office of the European Union, 2020 
Reproduction is authorised provided the source is acknowledged.

Print

ISBN 978-92-9245-671-9

doi: 10.2853/276786

DZ-03-20-096-EN-C

PDF

ISBN 978-92-9245-670-2

doi: 10.2853/754572

DZ-03-20-096-EN-N

EUROPEAN BANKING AUTHORITY - FACTSHEET ON FINANCIAL EDUCATION & FINANCIAL LITERACY