Portugal is still one of the worst in Europe when it comes to financial literacy. According to a study published in 2020 and released by the European Central Bank, in a survey with five questions on basic financial concepts that were put to the populations of various countries, the Portuguese were the ones who answered with the lowest success rate. The questionnaire focused on concepts such as inflation, risk diversification, or compound interest. Only 26% of participants from Portugal managed to get at least three of the five questions right, compared to 66% in countries like Germany or the Netherlands.
For those who know less about the subject, it's important to have a basic knowledge of the area. For those who are more proficient, these topics should be covered in depth. Here are some of the benefits of financial literacy:
-Adaptability to changes in the economy: the global economy is dynamic and keeping abreast of economic changes is crucial to making good decisions.
-Managing personal finances: in order to budget and save effectively, you need a solid foundation of financial knowledge, which also allows for greater security and independence.
-It is a useful tool for management and entrepreneurship: financial literacy is essential in these two areas, to ensure good positioning of their organizations, profit, and sustainable growth.
-Reducing the gap between the richest and the poorest: when a nation is more financially literate, there is a greater chance of reducing economic inequality, because it allows everyone, regardless of their circumstances, to have more opportunities to build wealth.
Nova SBE Executive Education offers a rich portfolio of Finance & Economics programs for all levels of financial literacy:
Nova SBE also offers a totally free course to contribute to financial education in Portugal - Finance for Everyone.