A solid position of the Cyprus Securities and Exchange Commission
is the introduction of a financial education lesson into the educational system
By Elena Karkoti*
Acquiring the knowledge and skills to manage one’s finances early on in life is a necessary prerequisite for an individual’s prosperity in today’s economic environment.
Financial education from a young age has become imperative due to the emergence of new complex financial products and services, driven in part by rapid technological advancement and the swift pace at which capital markets move and evolve. As a result of these developments, opportunities as well as risks associated with today's investment choices have multiplied.
European and international organizations regularly highlight the need to for financial education of the public. According to the Organization for Economic Cooperation and Development (OECD), financial literacy is a combination of knowledge, skills, attitudes and behaviors for making sound financial decisions, with the ultimate goal of achieving personal financial well-being.
However, research conducted in various EU member states, including our country, both by CySEC as well as other organizations, reveal low levels of financial literacy among the general population.
Which is why CySEC, for many years now, has placed financial education in Cyprus as one of its longstanding strategic goals, in a substantial way. It underscores, on every occasion, the need for the introduction of an independent financial education course into the country's educational system, as well as the establishment of an independent body for the design and implementation of a coordinated national strategy to promote financial literacy in Cyprus.
More specifically, CySEC’s standpoint repeatedly relayed to the Government since 2016 emphasizes that financial education should be integrated into the core educational curriculum for all children. By acquiring the relevant knowledge and skills, it enhances individuals’ ability to manage their finances effectively and make informed decisions regarding their financial activities.
The introduction of a financial education lesson in the educational curriculum, ideally across all levels, it is expected not only to empower young people with the essential knowledge to manage their finances, but it also opens up broader benefits. It will cultivate a new generation of citizens capable to address the challenges of modern economy and enable them to recognize and avoid financial scams.
A particularly positive development to this end was the establishment of the Cyprus Committee of Financial Literacy and Education, as was the adoption of the National Strategy for promoting financial literacy and financial education in Cyprus by the Council of Ministers in 2022. The Committee marks beginning of an organized, coordinated and long-term effort, which will provide the framework for the development, planning, implementation and execution of financial literacy programs.
CySEC has participated from day one in the Ad-Hoc Committee that was initially set up to formulate the National Strategy and will actively assist, alongside other stakeholders and Authorities involved, in its implementation.
To mark Global Money Week 2024 (GMW2024), a campaign aimed at raising awareness among children and youths about the proper and prudent management of their money, CySEC is organizing a series of activities, including informative lectures and presentations at all levels of education in Cyprus, from elementary school all the way up to university. The academic community has embraced this initiative by CySEC. But the most encouraging aspect is the interest and enthusiastic response of the children themselves, who have been participating actively by asking questions and expressing their views.
In any case, CySEC’s actions and initiatives on financial education aim to protect investors and ensure the financial well-being of the general public. With the proper education and continuous access to relevant information, we can empower citizens to make sound financial decision for their future, providing them with the necessary knowledge and skills to manage their money effectively.
* Elena Karkoti is Officer A in the Department of Strategy, International Relations and Communications at the Cyprus Securities and Exchange Commission and in charge for the Financial Education of the Public