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.

  • Neuromancer@lemm.eeEnglish
    49·
    6 months ago

    That isn’t true. I’m literate as well as all my friends.

    Lemmy is just an echo chamber of financial illiteracy. It’s mind boggling how few basic concepts are understood here.

    The questions are in the article I see there missed all the time here.

    • tal@lemmy.todayEnglish
      3·
      6 months ago

      Lemmy is just an echo chamber of financial illiteracy.

      I mean, maybe that’s true – I’ve seen no poll on here.

      But I think that the article’s point stands, and it’s talking about a Eurobarometer poll of Europe as a whole and Europe not doing so well. That’s not just a tiny pocket somewhere.

    • Flying Squid@lemmy.worldMEnglish
      22·
      6 months ago

      Are you literate or do you think you’re literate? Have you and your friends taken any evaluations to back that up? If so, who designed the evaluations?

      Because I bet could I find an economist who would tell you that all sorts of things you think you know about how economies were are entirely wrong. And then a second one to tell you that everything that the first economist says is wrong.

      • Neuromancer@lemm.eeEnglish
        39·
        6 months ago

        I just the evaluation listed in the article. I got 100%. It’s only 5 questions.

        You are confusing with economics with financial literacy. Not exactly the same things

        Americans generically are horrible at financial literacy. It’s something that should be taught in school. It was when they went to high school. Hence why I can answer the questions easily.

        • Flying Squid@lemmy.worldMEnglish
          14·
          6 months ago

          Americans genetically are horrible at financial literacy.

          Uh…

          It’s something that should be taught in school.

          If Americans are genetically horrible at it, you can’t teach it to them.

            • Flying Squid@lemmy.worldMEnglish
              34·
              6 months ago

              Okay, well anyway, I think the test is confusing economics with financial literacy because not knowing the connection between bond prices and inflation doesn’t show you’re financially illiterate. Not knowing details about bond investment is not a sign of financial illiteracy. If it was, almost everyone would be financially illiterate because most people aren’t doing a lot of trading in the bond markets.

              • Neuromancer@lemm.eeEnglish
                18·
                6 months ago

                Financially literate people are. I trade in stocks and bonds. Everyone I know does. It’a most likely part of your 401k which most people don’t understand. The test was designed to see you understood basic concepts like what inflation does to money. That’s a basic financial literacy question. Do you understand compound interest, etc.

                  • Neuromancer@lemm.eeEnglish
                    19·
                    6 months ago

                    I am aware Europeans don’t but I specially said Americans. Most likely that’s why they are poor. If you don’t understand how money works, you’re doomed to fail.

                    They could use an Ira if they do not have a 401k. Tax deductible and same concept.