literacy

The knowledge and instruction traditionally associated with personal finance (financial

literacy)—such as income, expenses, consumption, and budgeting—are necessary but hardly

sufficient to equip young people with adequate financial skills. For example, there is evidence that

16-year-olds today have very good knowledge specifically in budgeting, which raises questions about

whether over-indebtedness is actually a knowledge problem—there is much to suggest otherwise.

Instead, personal finance education needs to be both broadened and deepened to include the

financial sector, political dimensions, and macroeconomic issues in order to truly provide young

people with the knowledge to make informed decisions, both now and in the future. However, how

such education should be designed within the school system remains highly unclear.

This presentation will discuss the merits and difficulties of outlining and implementing a financial

education framed as citizenship education with a special focus on teaching and learning.

Dr Mattias Björklund is a teacher and researcher at Stockholm University, Sweden, specializing in

social science education (Didaktik). His professional background includes extensive experience

teaching social studies and history at the upper secondary school level in Sweden. This teaching

experience has significantly shaped his research interests, which often center on teaching and

learning of social studies, with a particular focus on economics and financial literacy as integral

aspects of citizenship education. Additionally, Dr Björklund contributes to the training of future

teachers through his involvement in various teacher education programs.

Furthermore, Dr Björklund is affiliated with Stockholm Teaching and Learning Studies, where he

leads the Social Science Network and collaborates with colleagues on research initiatives aimed at

advancing teaching and learning in the field.

Igor from Goethe Institute

Klajdi from Alert

Ivan from Faktograf

Milan from Teach me

Ivan Valchev, Danica Krbot, Stanislavs Kasikova, Veronica Gelfgren

*Target group: 

• Above 18

• Is in Europe and has the mental capacity

----------------------------

Have you ever had training or education on financial literacy? 

1. If yes, what was your reason/motivation to do so & what kind of training or knowledge?

2. If no, why?

Do you think FinLit is important, and why? 

On a scale of 1-5 (with 1 being totally not informed and 5 being well informed), how much do you think you have enough information and knowledge about modern financial opportunities or insights.

What are your main financial challenges? 

• Income & Budgeting

• Savings & Investments

• Cryptocurrency

• Debts and Loans 

• Others…

On a scale of 1-5, (with 1 being very slow and 5 being very fast), at what speed do you think the modern financial world is changing as compared to your ability to learn about it? 

Citizens struggle to keep up with the fast changes in the financial world

Challenge:

There are not enough opportunities to learn and citizens are overwhelmed by the fast changes in the financial world

Evidence: 

Eurobarometer (2023) 18% of EU adults report to be highly financially literate 

Our own research indicate that only 25% has had some form of financial education in the course other lives 

Why it matters:

• Negative Impact on Individual Well-being and Financial Resilience: Most Europeans lack critical financial skills, leading to poor decisions, increased debt, inadequate savings, and heightened vulnerability to fraud.

• Reinforcement of Inequality: This literacy gap disproportionately harms vulnerable groups like women, younger people, and lower-income households, widening existing socioeconomic disparities.

• Hindrance to Economic Development and Stability: Widespread financial illiteracy undermines efficient capital allocation and weakens the effectiveness of monetary policy, posing risks to broader economic stability.

• Challenges for Policymakers and Educators: Governments struggle to enact effective financial policies, and education systems can't adapt quickly enough to prepare citizens for new financial products and risks.

Call to action:

How might we make financial education more accessible, and easily understandable for all citizens

Evidence: After we made the desk research, we questioned 67 people aged 14-19 with 2 types of questions: closed and opened. So here are the results:

1. Too much information and generation Z and A still rely on guidance from parents and family but they will not necessarily follow the advice.

2. They understand the established model and they accept it but they have their own view.

3. The respondets answered the question: "Does the way adults talk about money corresponds with the way you see the financial world today?" in this way:

   40% agreed

   36% disagreed

   23% are between

Why it matters? - If education system with its curriculum and teaching methods are not updated than the gap between generational understanding of finance will increase.

Call to action/ design questions - How might we close the gap between different generation on understanding of finance and economy?

• high school students in Europe

  
  

  1. How do you usually learn about money and managing it?

  (Select all that apply)

a. From my parents or family

b. In school

c. On social media or YouTube/TikTok

d. From friends

e. Through trial and error (personal experience)

f. Other (please specify)

2. Which of these best describes how you feel about traditional advice like “save money for the future” or “don’t spend more than you earn”?

a. I completely agree and try to follow it

b. I understand it but find it hard to follow

c. I think it’s outdated and doesn’t fit today’s world

d. I’ve never really thought about it

e. Other (please explain)

3. If you had £100, what would you most likely do with it?

a. Save it for something important in the future

b. Spend it on something I want right now

c. Invest it (e.g., in crypto, stocks, etc.)

d. Give it to someone in need

d. I’m not sure / depends on the situation

4. Do you feel like the way adults talk about money fits with how you see the world today? Why or why not?

Start early

Keep it fun

Keep it Practical, internships

Keep it Flexible and up to date

Use horizontal networking

Challenge: The biggest problem is that most educational systems have the old fashioned boring way of delivering the financial education to the young people.

Evidence:

From the field research which we done like a survey we got the results of 12 people on digital devices and 10 people in the target zone between 14 and 25 years old. All of the results say that the tradional way of delivering the knowledge is boring and too idealized for the real world.

Why it matters:

Negative effect on the younger generations with less understanding and learning.

Some youths never understand why financial knowledge is important in real life.

When the youths came across some real life situation they understand that everything has changed and is not that perfect scenario that they studied and learned.

How might we made the studying more interesting and understandable?