Council approves conclusions on financial literacy

The Council approved conclusions on financial literacy.

The conclusions aim to give guidance to the Commission and the member states on how to improve citizen’s knowledge and understanding of finance, in order to help them make more informed financial choices and to encourage them to invest on European financial markets.

Strengthening people’s financial literacy is of utmost importance for building a more ambitious, inclusive and resilient Capital Markets Union. I am pleased that the process we started at our informal ECOFIN in Ghent in February 2024 has now resulted in Council conclusions. Financial literacy is of utmost importance if we wish to channel dormant savings towards productive investment projects. The better educated people are about their personal finances, the more likely they are to make the best financial decisions for themselves and for society at large.

Belgian minister of Finance

The Council in its conclusions notes that people who are financially literate make more informed choices about their own finances and are better equipped to prepare and invest for the future. This includes retirement and other investment projects. Better knowledge about personal finances would foster retail participation in capital markets and contribute to overall enhanced financial stability in the EU. The Council recognises that financial literacy benefits individuals but also more broadly society.

The Council welcomes the fact that several member states have developed and implemented national financial literacy strategies. It encourages other member states to do so, with particular attention to financially vulnerable groups, like young people, people with lower incomes and lower levels of general education, gender inequality issues as well as the specific needs of migrants and people with disabilities. The Council also points out the importance of potential entrepreneurs and SMEs having appropriate levels of financial literacy.

The Council encourages member states to consider integrating financial education in school curricula and foster financial education for adults through events, seminars, workshops and awareness raising campaigns.

It calls on the Commission to support actions that can be delivered via non-legislative means, such as the Technical Support Instrument (TSI) and the Erasmus+ programme to fund financial literacy projects and recommends to the Commission to facilitate trainings, professional development, research opportunities.

The Council also urges the Commission, member states and stakeholders to stimulate research and collaboration by considering funding opportunities to improve financial literacy in the EU.