Campaign Title: Financial Mistakes, Lessons for the Future
A joint initiative by the Cyprus Securities and Exchange Commission and the Department of Accounting and Finance at the University of Cyprus (2024–2025)
“Past mistakes
are the most valuable lessons
for the future.”
Objective of the Campaign
The Cyprus Securities and Exchange Commission, in collaboration with the University of Cyprus, has launched an innovative educational initiative aimed at enhancing financial literacy through the real-life experiences of individuals who suffered financial losses or made poor financial decisions.
What sets this campaign apart is its unique, human-centered approach: citizens themselves become “educators,” sharing personal stories and life lessons that are now being integrated into financial education programmes in schools, universities, and across social media platforms.
Who Participated
Individuals from across Cyprus were invited to share personal stories where they had experienced financial loss. Through a campaign launched in December 2024, participants detailed how they had fallen victim to fraud, accumulated excessive debt, made hasty investment decisions or followed risky financial trends without sufficient knowledge. Through this process, dozens of stories were collected and carefully evaluated.
PERSONAL FINANCE EXPERIENCES
All stories and experiences submitted as part of the “Financial Missteps: Lessons for the Future” campaign proved to be exceptionally valuable and enlightening. Each one offered a unique perspective on everyday financial realities faced by individuals, shedding light on risks, mistakes, and common pitfalls—while also highlighting moments of awareness and learning.
The Cyprus Securities and Exchange Commission and the Department of Accounting and Finance at the University of Cyprus extend their sincere gratitude to all those who shared their experiences with honesty and courage. All submitted stories will be utilised in future financial education initiatives.
For the purposes of this phase of the campaign, the following seven stories have been selected based on their educational value, the clarity of the messages they convey, and their potential to inspire, caution, and guide the public—particularly young people—in making more informed and responsible financial decisions. Some details have been changed, and we have agreed to change their names.
Case Study 1
Andreas, 23 years old, Famagusta*
"When I took out the loan, I thought it was my first step toward financial independence. Instead, I ended up trapped in a nightmare of debt."
Andreas took out a €200,000 loan to buy an apartment. The loan had a base interest rate of 4.25% and a 1.75% margin, with a repayment period of 25 years, totalling 300 instalments of €1,290 per month. At first, he was able to make his payments regularly, but he soon struggled to save any money as his entire salary was spent on either the loan or other living expenses such as food and bills.
Unfortunately, when Andreas lost his job, he had very little savings and couldn't continue making the loan payments on the apartment and was forced to sell the property to repay the debt.
Andreas' advice:
"Before taking out a loan, ask yourself: If I were to lose my job tomorrow or my income decreased, would I still be able to repay it? If the answer is no, it’s worth reconsidering your decision."
" On reflection, I should have taken a smaller loan or one with lower monthly payments that was based on the money I was earning. This would have allowed me to save some money for emergencies, such as when I lost my job until I found new employment. I want my experience to serve as a lesson for borrowers, helping them make better financial decisions when considering borrowing."
Lesson Learnt: Always Maintain an Emergency Fund
Failure to repay a loan will ultimately lead to legal action from your bank, and properties can be repossessed quickly. When buying a home, it’s important to understand the rates being offered and consider whether you can still afford it if the rates go up or you have to deal with an emergency or you lose your job. Have a minimum of three to six months net income available to cover any emergencies and planned spending.
Case Study 2
Demetris, 55-years-old, Ypsonas-Limassol*
"I started out as a savvy investor, only to end up chasing lost money. My passion for real estate turned into a financial nightmare."
A hardworking electrician, Mr. Demetris decided to invest his savings in old properties to renovate and then rent them out. The first purchase - a small apartment in the city centre - went smoothly, and the renovation was completed without major issues, and the apartment was quickly rented.
However, when the opportunity arose to buy several old properties at low prices, he became overly optimistic and took out significant loans to acquire the properties, without fully considering the potential risks. The renovations turned out to be demanding and far more expensive than he’d anticipated, tenants were scarce, and debts started piling up. After two years, the properties were still not generating the expected income and he was forced to sell at a much lower price, suffering significant financial losses.
Demetris’ advice:
"Quick and high profits are usually a matter of luck. Don’t let excitement cloud your judgment. Always do your research, have a backup plan, and think carefully before loading yourself with debt for a new project."
“My experience is a valuable lesson to young people about the real consequences of financial decisions and how to better prepare them for the future. My misfortune highlights the importance of conducting thorough research before making any choices and not being carried away by spontaneous enthusiasm”
Lesson Learnt: Diversify Your Investments – Never Put All Your Eggs in One Basket
Try to avoid putting all your investments in one place. Concentrating all your investments in one sector or asset class can expose you to significant risk. To achieve a diversified portfolio, set clear investment goals and assess risk tolerance, allocate assets across asset classes, diversify within asset classes and consider geographic diversification, as economic conditions vary across countries. Be aware of hidden costs and trading commissions.
If you build up too much debt, sort out a budget and deal with priority debts, consolidate or refinance loans and get help if you have late-paying customers who owe you money.
Case Study 3
Yiannis, 61, Nicosia*
"My investment in the stock market became... a life lesson. In just a few months, €20,000 turned into almost €2,000."
After selling a property he owned, Yiannis decided to invest a significant portion of the proceeds in the stock market. Although he had better options available, such as reinvesting in his own business, which was performing well at the time, his decision was influenced by the popularity of stock market investments in Cyprus in the year 2000. At the time, investing in the stock market was so widespread that even local grandparents, many of whom had little formal education and lived in rural villages, were putting their savings into shares.
Yiannis invested a total of 20,000 Cyprus pounds (€34,200) in the stock market. Unfortunately, this decision turned out to be a major financial mistake. The value of his investments plummeted by 90%, reducing his 20,000 Cyprus pounds (€34,200) investment to approximately 2,000 Cyprus pounds (€3,420) after a few months.
Yiannis’ advice:
"Financial advertisements and trends aren’t investment strategies. If you don’t understand where your money is going, just don’t invest it."
“I deeply regret following the herd, instead of seeking professional advice from regulated entities or individuals.”
“Looking back, my decision to invest in the stock market was irrational. I didn’t have a solid understanding of how the market worked and had minimal experience in trading. Instead of relying on logic and informed judgment, I was swayed by the widespread excitement and emotion of the moment.”
“My mistake highlights the concept of opportunity cost—the potential benefits lost when one alternative is chosen over another. Despite knowing that my company offered a more stable and predictable return on investment, I chose the much riskier path that I did not understand.”
Lesson Learnt: Evaluate Alternative Options
If you have savings and want to try to grow your money over the long term, then investing some of it is worth considering.
Often the best option for investment is right in front of us. In this case, the business was a stronger and more stable investment choice compared to the volatility of the stock market. Before investing in stocks, make sure you do your research, choose a reliable broker and choose your stocks and shares wisely. If you invest in a company that isn’t growing in value then the price of the shares could drop.
Case Study 4
Alex, 23, Strovolos*
"I thought I was the new crypto expert. In reality, I was just a gambler."
After turning 18, Alex couldn’t wait to start investing, initially using small amounts of less than 50 euros to buy different cryptos. He didn’t know what their purpose was or what he was doing, but it seemed exciting as everybody on social media was talking about it, so he blindly invested more. But in 2021 the value of the cryptos he’d invested in started to plummet and lost most of their value. Because he did not understand the investment, he sold it making large losses on his initial investment.
Alex’s advice:
"Before you follow others and invest in something that is not clear to you, think and ask yourself: Am I comfortable losing all my money?”
“What I learned from this incident is that I should have done some research and taken informed decisions about the level of risk involved. Investing without understanding is like gambling, you are essentially leaving your financial future to chance. Scammers also target and exploit investors who do not understand the market or the product.”
“By knowing what you invest in, you equip yourself with the tools to navigate the complexities of the financial markets, make informed decisions, and build a more secure and prosperous future.”
Lesson Learnt: Never Invest in Something You Don’t Understand
Cryptocurrencies are high risk and speculative as an investment. There are many types of crypto-assets and the market continues to evolve rapidly, and you may be presented with a product that is illegal or even a scam. Before investing in cryptocurrencies, do your research, choose a reliable exchange, diversify your portfolio and keep a long-term perspective. Do not invest more than you can afford and be prepared to lose all your money if something goes wrong.
Case Study 5
Aliki, 26, Limassol*
"When my parents needed emergency funds, our money was locked away... in bank accounts they couldn’t touch."
My parents saved money for emergencies by depositing it into savings accounts they’d set up for me and my siblings while we were minors. When an emergency arose and they needed money, they discovered that they couldn’t get access to the money in our accounts until we became adults.
Aliki’s advice:
"An emergency fund is pointless if you can’t access it when you need it!”
“Always have an emergency account that can be easily accessed in a case of an emergency. Your saving accounts should be always easily accessible, fast to withdraw and kept in a place which is trustworthy.”
Lesson Learnt: Maintain an Emergency Fund — With Emphasis on Accessibility
Aliki’s parents appeared to do the right thing, since they were saving for their children’s future. However, their experience revealed a critical oversight: the savings were locked in accounts that were inaccessible when an urgent need arose. This example reinforces a key financial principle: Having a reserve is not enough; being able to access it when it matters most is equally vital. Liquidity management is the cornerstone of any effective self-protection strategy.
Case Study 6
Maria, 21, Limassol*
"Three trips booked, zero money saved for emergencies. Guess what happened when my car broke down..."
Maria loves travelling and used all her savings to book three trips to other countries for the Summer. Unfortunately, before she’d even taken one of her trips, her car unexpectedly broke down, and to get it running again, she has had to scrape together every last euro to get it repaired, leaving her with no money to spend on her upcoming trips.
Maria’s advice:
"Setting financial goals can be motivating, but not everything can be anticipated. Maintain an emergency fund to cover unexpected expenses—otherwise, you risk falling short of your goals.”
“I should have budgeted for unexpected situations as well as working out what I would need to spend on travel and entertainment.”
Lesson Learnt: Don’t Let Emotions Drive Your Financial Decisions
Maria spent all her available funds on travel, driven by excitement and a desire to escape, without maintaining any financial safety net. When an emergency arose she had no available capital and no plan in place to handle it. An emergency fund is money that is saved for unexpected bills and emergencies. It’s advisable to keep these savings separate from your spending, such as opening a separate bank or savings account. A number of emergency fund calculators are available online, but the general recommendation is to have three months’ worth of living expenses in your account as a safety net.
Case study 7
Marios, 23, Aradippou – Larnaca*
"Everyone was making money with this 'investment.' Until all the money vanished along with the company."
When Marios’s hard-working brother heard about an investment opportunity that everyone was talking about, it seemed like an easy way to make quick money. People on social media and investment forums, even his own friends, seemed to be making ridiculous amounts of money, and he quickly became swept away – dreaming about a new car, starting a side business and a trip around Europe. Initially, the investment seemed to pay off, making back half of what he’d invested within a short space of time.
But when he tried to withdraw a portion of his earnings, suddenly there were delays, excuses from the company and confusing terms that weren’t mentioned when he first signed up. That was the first red flag. Online forums where people had been singing the praises of the company went silent and the success stories online suddenly vanished. Then the company’s website went offline entirely, and it was exposed as an illegal pyramid scheme. His investment, and the money of hundreds of others, disappeared.
Marios’s advice:
"If something looks like easy money, keep your distance. Scams thrive on greed and ignorance.”
“Do your research before you jump into anything. That experience changed my brother. He started reading more about finance, studying different investments strategies and learning how to spot red flags. Today, he approaches his investments with a different mindset. He’s more cautious, keeps himself informed, and he never makes a move without thorough research.”
Lesson: Learn How to Avoid Well-Disguised Scams
This story is a telling” example of how financial scams operate: they begin with enticing promises, maintain a facade of credibility, and ultimately collapse, leaving behind victims and valuable life lessons. To avoid financial scams, be wary of unexpected contact, unsolicited offers and excessive pressure to act quickly. Always do your research to establish the legitimacy of requests and the company, and never share personal information without first verifying its sources. If something feels wrong, trust your instincts and end the contact.
*Although these are real stories, the names and ages have been changed
Educational Integration of the Results
Our selected stories will be employed in a variety of educational formats and diverse educational channels, serving as a meaningful contribution to the advancement of financial literacy. This includes being used as instructional material in schools and universities and integrated into awareness campaigns on social media platforms.
We will also use these real-life accounts in academic and professional training seminars, offering tangible case studies for analysis and reflection. Ultimately, they will help promote financial literacy by showcasing the experiences of everyday individuals as relatable examples of responsible and mature financial behaviour.
Both the Cyprus Securities and Exchange Commission and the University of Cyprus will continue to work with dedication and integrity to promote financial literacy through initiatives that engage citizens in an authentic, accessible, and meaningful way.
