Financial literacy can be seen as a key element of a well-functioning economic system and therefore a prerequisite for sustainable economic growth and the financial well-being of individuals, said Central Bank of Cyprus Governor Constantinos Herodotou.
A press release issued by the Central Bank on Friday indicates that the governor recently delivered a speech at a Cyprus Economic Society seminar titled “The Importance of Having Financial Knowledge and National Strategies to Achieve It”.
Herodotou said that as more and more people operate with caution and understand the workings and operations of the financial system, including how to use its services and products appropriately and efficiently, the economic system in broad sense and society as a whole benefits.
He referred to the establishment of the ad hoc committee to prepare the national strategy for financial literacy in Cyprus, stressing that, recognizing the seriousness of the problem, state authorities around the world have taken steps to improve literacy. financial within the population at large. .
According to the Governor, the Committee’s ongoing work is remarkable and includes an assessment of the scientific literature on financial literacy, as well as a review and assessment of international initiatives for the promotion of financial literacy.
He also referred to a 2018 CBC poll that confirmed, among other things, the rather disturbing result that financial literacy among 18-29 year olds in general is rather low.
Herodotou also said that schools, as an enabling environment for learning, play an essential, if not the most important role in formulating a national strategy to address the problem of financial illiteracy from the start. of an individual’s life.
The Governor also said that the participation of private and non-profit stakeholders in the implementation of the National Strategy will be further supported through the development of a code of conduct and the prior agreement of specific protocols. He also spoke of the need for an appropriate governance structure for the body that will undertake the implementation of the National Strategy on Financial Literacy.