Financial literacy in Europe: which countries pass and which fall behind
Understanding an interest rate, distinguishing one financial product from another or knowing how inflation works are not advanced skills. They are the basis for making decisions that affect everyday money. And in the European Union, that basis remains weak. When the European Commission published the first pan-European survey on financial literacy in 2023, the results confirmed what many national studies had already suggested: most European citizens do not master the most basic financial concepts.
What financial literacy measures and why it matters
Financial literacy combines three dimensions: knowledge (knowing what inflation, an interest rate or risk diversification is), behaviours (planning spending, saving, comparing before signing up for a product) and attitudes (long-term perspective, tolerance for risk). The combination of all three is what allows people to make informed decisions about banking products, insurance, investment or retirement.
With the growth of digital banking, electronic payments, crypto investment and online financial products, the lack of this education translates directly into poor decisions and greater vulnerability to fraud or misleading advertising. That is why European institutions place it at the centre of the consumer protection agenda.
The Eurobarometer results on financial literacy
In July 2023, the European Commission published Flash Eurobarometer 525, the first pan-European tool to measure the level of financial literacy across the 27 Member States. The results were clear: only 18% of EU citizens have a high level of financial literacy, 64% have a medium level and the remaining 18% have a low level.
The survey measured both financial knowledge (understanding concepts such as inflation, compound interest and risk diversification) and behaviours (saving habits, resilience to unexpected events, long-term planning). The overall level was calculated by combining both dimensions, following the joint framework designed by the Commission and the OECD in 2022 for adults.
The data has become the EU’s official reference point on the issue, and has driven a series of concrete recommendations to Member States to strengthen their national financial literacy strategies.
The European countries that perform best and those that fall behind
The Eurobarometer results show very wide differences between countries. Only four Member States exceed the threshold of 25% of citizens with a high level: the Netherlands, Sweden, Denmark and Slovenia. These four countries share three common factors: a strong tradition of financial education in public schools, highly digitalised banking systems and a culture of saving and long-term planning.
At the other end, countries in Southern and Eastern Europe record the lowest levels of financial literacy. The gap reflects historical differences in access to the financial system, the weight of the informal economy and the inclusion of financial content in school curricula.
A report published by Il Sole 24 Ore based on Teha Group’s analysis shows how the countries with higher financial literacy largely coincide with those that have been transitioning to digital payments for longer and with higher banking penetration rates.
The groups most affected by low financial literacy
The Eurobarometer results point to four groups that consistently score below the average: women, young people, people on low incomes and people with lower levels of education. The gender gap is the most consistent across countries and appears even in markets with stronger overall scores.
For young people, the problem is not only the absolute level, but also the stage of life they are in: they reach important financial decisions (first rent, student loan, first job) without a solid foundation. The European Commission and the OECD have developed a specific financial competence framework for children and teenagers, published in September 2023, to guide the inclusion of this content in national education systems.
Another group with worrying results is self-employed workers and people with irregular income. At a time when the freelance economy is growing, the lack of financial education translates directly into weaker tax planning, less protection against unexpected events and poorer preparation for retirement.
European initiatives to close the gap
The European Union has activated several fronts in response to this diagnosis. In May 2024, the Council approved specific conclusions on financial literacy urging Member States to integrate this training into their national strategies, especially in compulsory education and in programmes aimed at vulnerable groups.
Alongside this, the joint EU-OECD framework gives Member States a common basis on which to build national policies without starting from scratch. The OECD/INFE also coordinates the International Network on Financial Education, which makes it possible to compare results between countries and share effective practices.
National plans remain the main route, but European coordination provides a common framework that reduces fragmentation between countries and helps ensure that training also reaches groups that move across several Member States: posted workers, Erasmus students, digital nomads and people with residence in more than one country.
The Eurobarometer data has put numbers on a weakness that many national studies had already been highlighting: financial literacy in the European Union is below the level required by the products and services citizens use every day. The gap between countries shows the scale of the challenge, and the joint EU-OECD framework points the way forward. The results now depend on implementation in each Member State.
Frequently asked questions
What is the Eurobarometer on financial literacy?
It is the first pan-European survey (Flash Eurobarometer 525) measuring the level of financial literacy across the 27 Member States of the European Union. It was published by the European Commission in July 2023 and assessed both financial knowledge and behaviours.
How many European citizens have a high level of financial literacy?
According to Eurobarometer 525, only 18% of EU citizens have a high level, 64% have a medium level and 18% have a low level.
Which European countries perform best in financial literacy?
Only four Member States exceed 25% of citizens with a high level: the Netherlands, Sweden, Denmark and Slovenia. The rest remain below that threshold, with significant differences between the north, centre, south and east of the continent.
Which groups have the weakest results?
Women, young people, people on low incomes and people with lower levels of education are the four groups that consistently score below the average in the Eurobarometer. The gender gap is the most consistent across countries.
What is the European Union doing to improve financial literacy?
In May 2024, the Council of the EU approved specific conclusions on financial literacy. The Commission and the OECD have published common financial competence frameworks for adults (2022) and for children and young people (2023). In parallel, Member States are developing their own national strategies under this common framework.