EU citizens are not doing well when it comes to financial literacy. Nearly half lack an understanding of basic financial concepts, including inflation.

EU citizens are not doing well when it comes to financial literacy. Nearly half lack an understanding of basic financial concepts, including inflation.

A third of Europeans do not understand how inflation works, according to a survey by Eurobarometer. The same survey revealed only 18% of EU citizens were able to show a high level of financial literary.

According to the survey, 65% of EU citizens are aware that, in times of positive inflation, the purchasing power of their money decreases, meaning they can buy less than they could before with the same amount of money.

Lack of knowledge about inflation could be seen as concerning

In October 2022, the annual inflation in the EU reached levels not seen before in the previous four decades at 11.5%. While the rising cost of living was the most pressing worry for 93% of Europeans at that time, apparently a third of EU citizens do not know how inflation affects their lives.

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The best performers were the Netherlands (43%), Denmark (40%), Finland (40%) and Estonia (39%) where about four in 10 respondents display a high level of financial knowledge.

Romania and Portugal reported the worst scores in high levels of financial knowledge at 13% and 16%, respectively.

  • AmidFuror
    9•7 months ago

    Thank you for starting a sensible comment thread. Unless we plan to go back to bartering, basic financial literacy is important. It doesn’t make you an evil exploiter to understand that we use money as a go-between for trading goods and services and what the consequences of that can be for someone trying to build a life or business.

    • @sbv@sh.itjust.worksEnglish
      5•7 months ago

      Unless we plan to go back to bartering, basic financial literacy is important. It doesn’t make you an evil exploiter to understand that we use money

      Pretty much this. If people have a better understanding of how our system is supposed to work, they’ll get angry when the rich bad people take advantage of it.