Publication Date: 18/06/2026

In recent years, the need for financial literacy and its importance in shaping responsible attitudes and behaviours—particularly among younger generations—has become increasingly prominent in public discussion. And rightly so.

Cyprus consistently ranks among the countries with the lowest levels of financial literacy in the European Union, with young people recording the weakest performance among all age groups.

Specifically, the results of the Organisation for Economic Co-operation and Development (OECD) survey for Cyprus (2023) show that only 58.8% of young people achieve the basic level of financial knowledge, compared with 80.1% among those aged 40–49, while only 12.9% reach the minimum level of overall financial literacy, compared with 19.1% among individuals aged 40–49. This overall indicator reflects people’s knowledge, behaviour, and attitudes towards financial matters.

These findings leave no room for complacency. They are not merely statistical results; they reflect a broader reality: limited financial literacy within families, society, and schools, highlighting the lack of systematic information, guidance, and meaningful development of financial knowledge and skills within the existing educational framework.

In light of the above, the Cyprus Financial Literacy and Education Committee (CyFLEC) was established in June 2024 under the chairmanship of the Central Bank of Cyprus (CBC), with the Ministry of Finance, the Ministry of Education, Sport and Youth, and the Cyprus Securities and Exchange Commission as its principal members. Its mission is to implement the National Strategy for Financial Literacy and Education. One of its key strategic objectives is to strengthen financial education in both public and private education.

Through CyFLEC, a new era is emerging for the advancement of financial literacy in Cyprus, at a time when concepts such as saving, borrowing, and investing have a decisive impact on citizens’ quality of life and future prospects, particularly those of young people.

Today, young people are expected to manage money in an environment where access to credit, online shopping, and investment applications is immediate and often unregulated. While this accessibility offers opportunities, it can also lead to poor decisions such as overspending, irrational borrowing, or exposure to high-risk investments without a sufficient understanding of the risks involved.

At the same time, the digital era has created an environment in which investment opportunities—from instant trading platforms to cryptocurrencies—are often promoted as “easy ways” to make money, frequently through social media platforms. In this setting, financial decisions are made faster than ever before, but not necessarily with the knowledge or risk assessment they require.

Furthermore, the strong presence of non-specialised sources of information increases the risk of misinformation and creates the illusion that financial choices are simple and consequence-free. In reality, however, they require knowledge, judgement, and responsibility—skills that cannot be taken for granted but must be cultivated systematically.

This is precisely why financial education cannot remain fragmented or occasional. Experience shows that only systematic and structured instruction can deliver meaningful results. The introduction of a standalone and compulsory financial literacy subject as a distinct component of the school curriculum has become a necessary step. Through such a subject, students would gradually acquire the essential knowledge and skills they need, connecting theory with everyday life and developing responsible financial behaviours. At the same time, they would have opportunities to practise through real-life scenarios—from budgeting to evaluating investment options—thereby preparing effectively for adult life.

The importance of this approach is increasingly recognised internationally. Through the OECD International Network on Financial Education (OECD/INFE), of which the Central Bank of Cyprus is a full member, a new international policy study on financial education in schools is currently being developed. This study will assess the global landscape, identify best practices, and recommend ways to further strengthen financial education for young people.

More and more education systems across Europe are moving towards the adoption of more structured and coherent financial education programmes.

These developments reinforce national efforts. I particularly welcome the initiative of the Minister of Education, Sport and Youth to strengthen financial literacy in public education, as well as the ongoing plans for its systematic and structured integration into the school curriculum. Since the 2024–2025 school year, a nationwide six-hour intervention programme has been implemented for Grade 9 students, focusing on core concepts such as personal budgeting, saving, and borrowing. During the 2025–2026 school year, the programme was expanded through targeted three-hour interventions in Grades 7 and 8 and has already been incorporated into the Health Education curriculum for Year 6 primary school students.

The current approach, combined with the plans for the establishment of a comprehensive standalone subject, responds to a genuine need of modern society and aligns with European initiatives aimed at supporting, promoting, and strengthening financial literacy.

Within this framework, the next steps of CyFLEC in the field of school education focus on consolidating and upgrading these efforts. Through CyFLEC's Thematic Project Team on strengthening financial literacy in public and private education, chaired by the Ministry of Education, Sport and Youth, work is progressing on the development of comprehensive and practically oriented educational materials. In the next school year, these materials will cover, in addition to basic concepts, topics such as taxation, investments, and the relationship between risk and return. In the medium term, they are expected to expand further to include pensions, insurance, and digital financial skills.

At the same time, the national financial literacy website of CyFLEC is expected to become fully operational shortly. It will serve as a central information and education portal, providing reliable content, practical tools, and guidance for everyday financial decision-making. In parallel, educational materials are being developed to strengthen the knowledge of adult citizens, while targeted practical initiatives are planned for vulnerable population groups. The aim of these actions is to facilitate the transition from theoretical understanding to the practical application of financial knowledge in everyday life.

The need to strengthen financial literacy in a meaningful way remains more relevant than ever. As a society, we are called upon to look ahead with clarity and foresight and invest in knowledge that equips young people to face the challenges of the modern economic environment. The introduction of a standalone and compulsory financial literacy subject is not merely another educational option; it is a conscious investment in our collective future—in better-informed citizens, more resilient households, and a more stable economy.

Ultimately, the decisions that shape the future of a country begin with the knowledge of its citizens. As Nelson Mandela aptly observed: 

“Education is the most powerful weapon which you can use to change the world.” 

In this case, it is also the foundation for a more sustainable and responsible economic future.

Christodoulos Patsalides
Governor of the Central Bank of Cyprus
Chairman of the Cyprus Financial Literacy and Education Committee