Opinion of the European Economic and Social Committee – Financial literacy and education for Europeans (exploratory opinion at the request of the European Commission)
Date: 2025-07-17
Institutions: European Economic and Social Committee
Subjects: adult education, continuing education, education policy, financial literacy, financial market, financial planning, household, indebtedness, labour market, private investment








C_202505149EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2025/5149


28.10.2025






Opinion of the European Economic and Social Committee
Financial literacy and education for Europeans
(exploratory opinion at the request of the European Commission)
(C/2025/5149)


Rapporteur: 
Giuseppe GUERINI






Advisor


Samuel CORNELLA (to the rapporteur)




Referral


Letter from Maroš ŠEFČOVIČ, Commissioner of the European Commission for Trade and Economic Security and Interinstitutional relations and transparency, 20.3.2025




Legal basis


Article 304 of the Treaty on the Functioning of the European Union




Section responsible


Economic and Monetary Union and Economic and Social Cohesion




Adopted in section


4.7.2025




Adopted at plenary session


17.7.2025




Plenary session No


598




Outcome of vote
(for/against/abstentions)


131/0/2




1.   Conclusions and recommendations









1.1.


The European Economic and Social Committee (EESC) highlights the fact that financial literacy is crucial when it comes to fostering individuals’ and families’ ability to save and invest, and thus that it enables them to seek to ensure their financial stability and financial independence. It should therefore be actively promoted as a necessary precondition for financial literacy.












1.2.


The EESC points out that financial literacy helps people to have an in-depth understanding of debt, of the functioning of financial markets, of the tax implications of investments, and of insurance as a risk management tool. These aspects are pivotal to a person’s ability to deal with financial and non-financial risks, to seize financial opportunities in an informed way, and to plan their retirement.












1.3.


The EESC notes that the significant discrepancies in financial literacy levels between Member States and between various groups of the population should be addressed through targeted initiatives, including at European level. These initiatives should take into account measures already taken at national level, and factor in the different levels of literacy that exist in various contexts.












1.4.


The EESC notes that investing in financial literacy is also key to reducing inequalities and vulnerable situations, as well as to strengthening social rights in the European Union. Studies and surveys show that the most vulnerable sections of society are most affected by a lack of financial skills.












1.5.


The EESC believes that financial literacy is – and will be even more so in the future – a complementary tool for the effective planning of social welfare and pensions, as well as access to health insurance or coverage for long-term care. This is particularly relevant in the light of demographic trends and increasing pressure on national welfare systems.












1.6.


The EESC highlights the importance of improving the understanding of three key concepts among citizens of all ages: i) the importance of diversification; ii) the role of correlation and decorrelation between different asset classes, particularly in the light of instances of high correlation between equities and bonds during inflationary periods (2022, 2025); iii) the role of time, patience and maintaining a long-term perspective in reaping the full benefits of compound interest rates.












1.7.


The EESC encourages the institutions to undertake significant initiatives in financial literacy starting from the early stages of a European citizen’s education; this includes considering the introduction of this subject into school curricula. At the same time, efforts should be made to nurture the financial literacy and entrepreneurial skills of people starting up new business ventures, with a particular focus on new entrepreneurs from disadvantaged backgrounds, including outside the traditional education system. The EESC encourages civil society to play an active role here, stressing that non-profit-making stakeholders must lead the way in this area in order to ensure that financial education programmes take an impartial and critical approach. With this in mind, it could be useful to establish a ‘European Financial Education Day’ so as to promote ongoing awareness-raising initiatives.












1.8.


The EESC stresses the importance of rapidly developing a regulatory framework that is flexible enough to incorporate the new trends that evolve in financial markets, ensuring that regulatory responses align in a timely manner with real world developments, relating, for example, to social media and so-called ‘finfluencers’ [financial influencers].












1.9.


The EESC warns against the growing dangers posed by financial scams and online fraud. These issues highlight the importance not only of financial knowledge and skills but also of greater behavioural awareness. This danger is compounded by the use of artificial intelligence to commit fraud and steal sensitive data, affecting in particular those who are less experienced in the use of digital devices. Coordinated action at European level, accompanied by national measures with regard to regulation as well as investments in cybersecurity, is therefore urgent and necessary.




2.   Background to the proposal









2.1.


According to an international survey on adult financial literacy (1), around half of the adult population in the EU do not have a sufficient grasp of basic financial concepts (2). It is particularly worrying that this problem affects the most vulnerable sections of society disproportionately compared to other groups.












2.2.


The results of a Eurobarometer survey on financial literacy, published by the European Commission in July 2023 (3), show that just 18 % of EU citizens have a high level of financial literacy, 64 % have an average level and the remaining 18 % have a low level. There are also large differences between Member States: only in four countries (the Netherlands, Sweden, Denmark and Slovenia) do more than 25 % of people score highly in financial literacy.












2.3.


The results of the Eurobarometer survey on financial literacy highlighted the need for financial education to be targeted in particular at women, young people, people on low incomes and those with a generally lower level of education, who tend to have lower financial literacy on average than other groups. In addition, the EESC already noted that lower formal education, along with lower digital skills rates, creates difficult prospects for the labour and social inclusion of people with disabilities (4).












2.4.


In recent years, the Commission has worked to promote financial literacy for both adults and young Europeans. Several frameworks have been published in this regard, and the Commission is working to help national authorities, civil society and stakeholders develop policies, programmes and educational materials on financial literacy.












2.5.


In particular, the Commission and the OECD have jointly developed a ‘Financial Competence Framework’ for children and young people, published on 27 September 2023 (5), to help Member States, practitioners and other stakeholders to create initiatives and programmes aimed at improving the level of financial literacy among the younger generation, enabling them to make informed personal financial decisions.












2.6.


In its conclusions on financial literacy, approved on 14 May 2024, the Council: i) stressed the urgency of taking further action to promote financial literacy across the EU; ii) recognised that financial literacy is important for improving the financial well-being of EU citizens, as well as financial inclusion; and iii) stressed that financial literacy benefits not only individuals, but also society as a whole, and that greater financial literacy can increase the level of trust between citizens and financial institutions (6).












2.7.


In its conclusions, the Council also noted that ‘the digitalisation of the financial landscape increases the need and urgency to further enhance the level of financial literacy and digital skills in the EU’, and that ‘enhanced financial knowledge may help individuals to embrace new opportunities stemming from digital finance’.












2.8.


The EESC draws attention to the recent financial literacy and inclusion campaign conducted by the Financial Times, which urged decision-makers to consider basic financial knowledge as a key life skill, to be strengthened through maths teaching that emphasises the role of ‘maths applied to life’ (7). Dedicated studies by Annamaria Lusardi from Stanford University have empirically demonstrated the lack of basic arithmetic skills, with many people unable to understand the effects of inflation on their income or to calculate the annual charges on a loan with an interest rate of 2 % (8).












2.9.


In this opinion, the EESC would like to make some observations on financial literacy in the EU with the aim of making a meaningful contribution to the ongoing debate on behalf of European businesses and civil society, including policy recommendations, sharing the view of the Commission and the Council that financial literacy is a key priority for a stronger and more efficient internal market.












2.10.


The EESC agrees with the point made in the Commission communication of 5 March 2025 entitled The Union of Skills (9) that the lack of financial and entrepreneurial skills among European citizens limits the innovation and growth potential of the European Union. It therefore encourages the Commission to take specific measures to promote widespread financial education initiatives.




3.   General and specific comments









3.1.


The EESC stresses that financial literacy can help citizens when it comes to their ability to save, as well as to plan and budget, and thus fosters their financial stability and financial independence. It should therefore be actively supported and promoted.












3.2.


The EESC also stresses that basic financial knowledge is an essential prerequisite in terms of enabling individuals and families to make informed choices that strengthen their financial stability and promote their financial independence. This basic knowledge – meaning the ability to understand basic financial concepts such as saving, budget planning, interest and responsible spending in practice – is essential in order to effectively apply financial principles in daily life. Therefore, it should be actively promoted and supported as the cornerstone of any financial literacy strategy.












3.3.


The EESC underlines that a thorough understanding of debt, of the tax implications related to investments, of legal liability, and of insurance coverage as a form of risk management, is key to achieving full financial literacy. These concepts are pivotal to a person’s ability to manage financial and non-financial risks and to seize financial opportunities. Where people lack sufficient knowledge in these areas, they are more exposed to the risk of over-indebtedness and to the financial consequences of unforeseen events.












3.4.


The EESC notes that investing in financial literacy is key to reducing inequalities and difficulties, as well as strengthening social rights across the EU. Various studies and surveys (10) show that the most vulnerable segments of the population are more affected by a lack of financial literacy.












3.5.


The EESC points to the need to design financial education programmes tailored to the needs of women, taking into account: i) the specific challenges women face as they go through life, such as where they earn less than men or need to take career breaks; ii) the role of women in household purchasing decisions; and iii) the role that women’s financial independence can play in preventing gender-based violence, which is often accompanied or exacerbated by forms of imposed financial dependency.












3.6.


The EESC stresses that the significant discrepancies in financial literacy levels between Member States should be addressed through targeted initiatives at European level. These initiatives should take due account of initiatives that have already been taken by Member States and the different levels of financial literacy throughout Europe. This would help to ensure a wide dissemination of financial knowledge in the internal market, acting as an additional tool to foster convergence and overall prosperity within the EU.












3.7.


The EESC believes that improving financial literacy could help European citizens deal more effectively with sudden shocks to their income, which could prove crucial in the context of increasing tensions in international trade and global value chains. According to a recent survey, one in four respondents (25 %) said that they could cover their living expenses for only one month, without having to use loans or money transfers, if they were to lose their main source of income (11). Those in the lowest financial literacy category appeared to be particularly vulnerable, which further underlines the urgency of taking action in this area.












3.8.


The EESC believes that financial literacy is becoming – and will become even more so in the future – a useful complementary tool for the effective planning of social welfare instruments, on the understanding that the responsibility for ensuring a proper social security system must remain the fundamental pillar of public pension systems. However, supplementary pensions and health insurance or coverage for long-term care appear to be increasingly important as forms of protection. This is crucial in the light of the increasing demographic pressure and constant pressure on national social security systems. As highlighted by important publications, ‘lack of financial knowledge prevents people from preparing for the future. Those with poor financial knowledge are less likely to plan their pension or their long-term care coverage. This is very consistent across different countries’ (12).












3.9.


The EESC supports the methodology recently adopted by the European Commission in its 2023 survey to assess financial knowledge in the EU (13). The survey focused on five key factors: i) understanding the effects of inflation; ii) compound interest and how it works; iii) determining the basic price of assets; iv) risk-reward ratio; and v) risk diversification.












3.10.


When it comes to investments, the EESC considers it important to focus specifically on improving the understanding of three key concepts among Europeans of all ages, and in particular: i) the importance of diversification through broadly diversified products such as exchange-traded funds or index funds which, while involving risk, generally avoid excessive concentration of risk on a single share or bond; ii) the role of correlation and decorrelation between different asset classes, particularly in the light of recent inflationary trends (2022, 2025), which have made equities and bonds more correlated than usual; and iii) the role of time, patience and maintaining a long-term perspective in reaping the full benefits of compound interest rates.












3.11.


The EESC also considers it strategic to focus on increasing the understanding of debt and mortgages, so that people can adapt their mortgage to their own specific circumstances and ensure that they have the means to avoid poverty and improve their ability to save.




Citizens of all ages should have a basic knowledge of at least the following parameters: i) the type of loan available (at a fixed rate, a variable rate, or a flexible loan that can be adjusted); ii) the duration; iii) the interest rate; iv) the principal in relation to the objective; v) the fees charged; vi) the annual percentage rate of charge (APR); and vii) the refinancing possibilities.








3.12.


The EESC shares the Council’s view (14) that financial decisions are increasingly influenced by financial technology, and that the way people acquire information and take decisions is evolving at an unprecedented pace.












3.13.


At the same time, the EESC warns against the dangers posed by the growing threat of financial scams and online fraud, to which people are increasingly exposed. These trends highlight the importance not only of financial knowledge and skills, but also of behavioural awareness. These risks are becoming especially stark with the use of artificial intelligence to commit data fraud and theft, which particularly affect those who are not fully competent in the use and management of digital devices. Coordinated actions at European level implemented by the Member States in terms of both regulation and investment in cybersecurity would therefore be useful and necessary.












3.14.


The EESC stresses the importance of rapidly developing a regulatory framework that is flexible enough to incorporate the new trends that evolve in financial markets, ensuring that regulatory responses align with real world developments in a timely manner. As noted by Carmine Di Noia, OECD Director for Financial and Enterprise Affairs, ‘there is a moving target in terms of the skills that are needed to achieve basic financial literacy. These are uncharted territories. Ten years ago we wouldn’t have talked about crypto or AI or finfluencers [financial influencers]’ (15).












3.15.


In this regard, the EESC points out that, in a 2021 survey conducted by Hargreaves on the UK market, 43 % of the 18-34 year-olds surveyed said that they had acquired their financial knowledge from financial companies’ websites. By July 2024, this percentage had fallen to 29 %. However, the number of people using Reddit for investment ideas increased from 17 % to 26 %, and the share of those using TikTok for the same purpose increased from 12 % to 20 % (16).












3.16.


The EESC notes the growing importance of sustainable and ethical investments, as well as social-impact investments, with a significant number of investors focusing on environmental, social and governance (ESG) profiles when making their financial decisions. The EESC therefore recommends that the skills needed to assess ESG-labelled products become an important element of financial literacy in the future to enable citizens to properly check ‘whether and how’ these products weigh up ethical values and financial returns.












3.17.


The EESC encourages the institutions to undertake initiatives in financial literacy starting from the early stages of a European citizen’s education and even proposes that this subject could be made an integral part of school curricula with the help of teachers and other educators. Starting to invest at an early age offers many advantages, the most important of which is the accumulation of compound returns on investment over time. In the early years of school, teaching should focus on basic concepts such as the value and role of money. More complex topics – such as saving, budget management and investing – could be gradually introduced as pupils get older.












3.18.


The EESC also stresses that it is crucial to help the younger generations become familiar from an early age with the volatility involved in investment management, when the amounts involved are smaller and the need to rely on investment returns for living expenses is less pressing than later on.












3.19.


The EESC highlights the frequent lack of financial skills among new entrepreneurs, who are not familiar with the world of finance and lack access to existing tools that could be useful to them. To address this gap, training programmes for new entrepreneurs could be developed, supported by entrepreneurs and experts from SMEs. The EESC encourages civil society to play an active role here, stressing that non-profit-making stakeholders must lead the way in this area in order to ensure that financial education programmes take an impartial and critical approach. With this in mind, it could be useful to establish a ‘European Financial Education Day’ so as to promote ongoing awareness-raising initiatives.












3.20.


The EESC believes that the content and materials of training initiatives on financial literacy should be targeted to respond to the specific needs of its beneficiaries, and inclusive with vulnerable groups. Financial education of students and young adults can also improve the financial knowledge of those who are part of their immediate circle. This suggests a potential multiplier effect associated with financial education focusing on younger people. ‘Given the demographics of the student and parent populations, the main beneficiaries of the multiplier effects are those in their late 40s and early 50s. Spillovers are stronger for those with lower initial financial literacy scores’ (17).












3.21.


The EESC encourages efforts to also educate children and the younger generations on the increasingly digital nature of money and payments, characterised by the reduced use of cash and increasing uptake of contactless cards, financial apps and online financial services. This education should take place in a controlled environment to help young people develop an early understanding of ‘digital financial culture’, including the implications of using services such as ‘buy now, pay later’ and the risks associated with online gaming in return for payment.












3.22.


Likewise, there should be opportunities that are accessible for older people to learn how to safely access digital information online on financial products. Civil society organisations can play a key role here, in ensuring continued and lifelong learning for specific vulnerable groups, including persons with disabilities, women from different ethnic and social backgrounds, and illiterate people, who may not have had the opportunity to learn about financial concepts earlier in their lives.












3.23.


Financial education initiatives should also be made accessible to vulnerable young people, by expanding programmes to reach young people outside the formal education system and those in vulnerable situations (NEETs, young people from low-income, migrant or rural backgrounds etc.). In addition to supporting potential civil society initiatives, the Member States, supported by EU funds (ESF+, Erasmus +), should run community workshops, mentoring programmes and activities in youth centres to teach financial skills.












3.24.


Finally, the EESC commends the programme and practical experiments developed by Finland through a national network of entrepreneurial villages aimed at improving young people’s financial literacy. According to some sources, ‘fully 91 per cent of Finnish students take part in a 10-lesson programme, during which they learn how business, the economy and society work as well as how to apply for a job’ (18), as part of Finland’s broader and ambitious goal of achieving the highest level of financial literacy in the world by 2030.












3.25.


According to the people involved in the programme, ‘the goal in Finland regarding financial literacy is that people make sustainable and value-creating economic decisions [...]. These decisions are made in various roles, whether as individuals, in households, in businesses, or almost in all activities within society. Therefore, it’s not just about how to manage your own financial well-being and capital’ (19).






Brussels, 17 July 2025.


The President


of the European Economic and Social Committee

Oliver RÖPKE
               





(1)  OECD/INFE, 
International survey of adult financial literacy
, 2023: https://www.oecd.org/en/publications/oecd-infe-2023-international-survey-of-adult-financial-literacy_56003a32-en.html.

(2)  
            Monitoring the level of financial literacy in the EU, Eurobarometer, July 2023: https://europa.eu/eurobarometer/surveys/detail/2953.

(3)  OECD and European Commission, 
Financial Competence Framework for Children and Youth
, September 2023: https://finance.ec.europa.eu/system/files/2023-09/230927-financial-competence-framework-children-youth_en.pdf.

(4)  Opinion of the European Economic and Social Committee – Inclusion of persons with disabilities in the context of the development of new technologies and AI – possibilities, challenges, risks and opportunities (exploratory opinion requested by the Polish Presidency) (OJ C, C/2025/2959, 16.6.2025, ELI: http://data.europa.eu/eli/C/2025/2959/oj).

(5)  OECD and European Commission, 
Financial Competence Framework for Children and Youth
, September 2023: https://finance.ec.europa.eu/system/files/2023-09/230927-financial-competence-framework-children-youth_en.pdf.

(6)  Council of the European Union, Council conclusions on financial literacy, 14 May 2024: https://www.consilium.europa.eu/en/press/press-releases/2024/05/14/capital-markets-union-council-approves-conclusions-on-financial-literacy/.

(7)  Financial Times, Financial literacy: https://www.ft.com/financial-literacy.

(8)  Annamaria Lusardi and Olivia S. Mitchell, 
Financial Literacy Around the World: an Overview
, 2011: https://www.cambridge.org/core/journals/journal-of-pension-economics-and-finance/article/financial-literacy-around-the-world-an-overview/0488F901318E0FBC4C92DC6E964AB89C.
Annamaria Lusardi and Olivia S. Mitchell, 
The Economic Importance of Financial Literacy: Theory and Evidence
, 2014: https://www.aeaweb.org/articles?id=10.1257/jel.52.1.5.

(9)  European Commission, The Union of Skills, 5 March 2025: https://eur-lex.europa.eu/legal-content/en/TXT/PDF/?uri=CELEX%3A52025DC0090.

(10)  OECD (2005), 
Recommendation on Principles and Good Practices for Financial Education and Awareness, Recommendation of the council
; OECD (2012): https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0338, 
PISA 2012 Financial Literacy Assessment Framework
, Paris, OECD: https://www.oecd.org/en/publications/pisa-2012-assessment-and-analytical-framework_9789264190511-en.html; Willis L.E. (2022), 
Alternatives to financial education
, in Nicolini G. e Cude B.J. (a cura di), The Routledge Handbook of Financial Literacy, Routledge; World Economic Forum (2016): https://www.taylorfrancis.com/chapters/edit/10.4324/9781003025221-23/alternatives-financial-education-lauren-willis?context=ubx&refId=25b658dd-07f9-4784-8c49-e7d71a16fec2, 
New Vision for Education. Unlocking the Potential of Technology
, Geneva, World Economic Forum: https://widgets.weforum.org/nve-2015/index.html.

(11)  European Commission, 
European Financial Stability and Integration Review (EFSIR)
, 18 June 2024: https://finance.ec.europa.eu/document/download/513c318e-a9ba-46f2-8854-0d134aa9bf18_en?filename=european-financial-stability-and-integration-review-2024_en.pdf&prefLang=it.

(12)  Annamaria Lusardi and Olivia S. Mitchell, 
Financial Literacy Around the World: an Overview
, 2011: https://www.cambridge.org/core/journals/journal-of-pension-economics-and-finance/article/financial-literacy-around-the-world-an-overview/0488F901318E0FBC4C92DC6E964AB89C.
Annamaria Lusardi and Olivia S. Mitchell, 
The Economic Importance of Financial Literacy: Theory and Evidence
, 2014: https://www.aeaweb.org/articles?id=10.1257/jel.52.1.5.

(13)  
            Monitoring the level of financial literacy in the EU, Eurobarometer, July 2023: https://europa.eu/eurobarometer/surveys/detail/2953.

(14)  Council of the European Union, Council conclusions on financial literacy, 14 May 2024: https://www.consilium.europa.eu/en/press/press-releases/2024/05/14/capital-markets-union-council-approves-conclusions-on-financial-literacy/.

(15)  OECD, PISA 2022 results – Volume IV – 
How Financially Smart Are Students?
, 2024: https://www.oecd.org/en/publications/pisa-2022-results-volume-iv_5a849c2a-en.html.

(16)  Claer Barrett, ‘
            
Would you turn to Reddit for investment ideas?

            ’, Financial Times, 19 July 2024: https://www.ft.com/content/ad8437e4-053e-4db4-bb46-4d17da2d30c3.

(17)  Bruegel, 
The ripple effect of financial education
, 23 March 2023: https://www.bruegel.org/analysis/ripple-effect-financial-education.

(18)  The Interdisciplinary Learning Network, 
Yrityskylä: Young Finnish Learners Experience Life in the Workplace
, 21 November 2025: https://idlnetwork.substack.com/p/yrityskyla-young-finnish-learners.

(19)  Richard Milne, 
Finland fuels children’s future with financial literacy and food: World-beating ambition drives real-life business practice and free lunches for kids
, Financial Times, 6 January 2025: https://www.ft.com/content/26c56174-76ab-493b-9770-6d1ed4996505.


ELI: http://data.europa.eu/eli/C/2025/5149/oj
ISSN 1977-091X (electronic edition)