In the self-assessment of their own financial knowledge, 48% of the respondents defined their level as average, and 10% as high*
The overall level of financial literacy in Bulgaria is 58%, according to the latest analyzes of the Organization for Economic Cooperation and Development (OECD). Bulgaria is slightly above the average level for the region, but below the average level for EU member states. The countries of Southeast Europe have achieved an average of about 57% of the maximum possible result. This is lower than the values obtained through the same methodology from surveys of the EU and OECD economies (around 64% and 65% respectively) **.
According to the international financial services provider Euronet, financial education has always been an extremely important topic, especially in times of unexpected economic crises.
Should financial education become part of the national curriculum that schools teach in the classroom? Or should parents show their children how to save and allocate their budget? The financial solutions provider Euronet analyzes this issue, as well as whether there are opportunities and available resources for education on finance, and below you will find some of the main conclusions.
In fact, in recent years, banks have begun to offer ways to support financial education both in schools and at homes, such as flexible bank accounts, savings plans, and educational resources.
Should financial literacy be nurtured in school?
According to another study published by Portafina, 68% of Britons believe that teaching financial literacy in school would improve their financial situation later in life. 9 out of 10 parents believe that it is the school’s responsibility to provide financial education.
But given technological advances in the payment industry, will financial education need to be updated and reviewed regularly? And will this kind of information be available to teachers?
A study by the Money Advice Service found that 88% of teachers do not have the training or specific qualifications needed to teach this type of information. Teachers themselves say that the main obstacles to providing financial education in schools are the lack of time in schedules, the lack of flexibility in the curriculum, and the fear of lack of necessary skills and knowledge.
Ways to improve your financial knowledge at home
According to Euronet, it is important to raise people’s awareness of how to manage their money, to be well prepared for the various conditions that financial institutions offer, and to be informed about how they could improve their financial knowledge so that they can use the funds in the best way, and to be able to raise their children from an early age to have a reasonable attitude towards money.
There are a variety of tools available such as blogs, apps, and special bank cards for children. Some of them include Starling Kite and Revolut Junior, which offer cards with a certain number of limits as well as savings goals. Some even allow you to set tasks and do housework. Therefore, it offers an opportunity for children and young people to learn how to manage money.
Banks can also work to support financial education
By working with schools, financial institutions can contribute with free financial education programs. Revolut and Starling offer ways to promote financial literacy through their Junior and Kite children’s accounts, and the Bank of England, for example, has a financial education section that offers many free resources for teaching and home learning.
In addition, there are already many free mobile applications, such as Rooster Money (non-Pro version), Otly, Gimi, Bankaroo, which users can use to manage their finances.
You can always count on a good old piggy bank. No matter what age we are in, children will always enjoy the act of putting their own coins in a piggy bank. The beauty of money and coins is that they are visible, you can hold them, count them and deposit them yourself, write in their conclusion Euronet.
“Financial education is really important, especially with so many payment options on offer. By giving children the opportunity to understand options, learn how to budget, and see the value of even the smallest effort, we will ensure that we have a financially knowledgeable young generation that will make insightful financial choices,” said Kalina Stoykin, Regional Manager of Euronet Bulgaria.