On Thursday the 20th of February the Minister for Finance, Paschal Donohoe launched Ireland’s first National Financial Literacy Strategy which states, ‘The mission of the Strategy is to improve the level of financial literacy in Ireland’.
The Organisation for Economic Co-operation and Development (OECD) defines financial literacy as: ‘a combination of financial awareness, knowledge, skills attitudes and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being’.
Why is financial literacy important?
In 2023, the OECD carried out a survey among 100 Irish adults and found that four out of ten adults still struggle with managing their finances effectively.
Being financially literate means having the knowledge, skills, and confidence to make informed and effective decisions around money. It involves understanding key financial concepts and being able to manage personal finances responsibly. The Strategy as published states that ‘financial literacy is important as it plays an essential role in consumer protection and works alongside many other protections in place to help consumers’:
- Make the most of their money’
- Make informed financial decisions
- Help to improve their overall financial resilience and wellbeing
At the launch it was emphasised that ‘In today’s financial marketplace, possessing adequate levels of financial literacy is not a luxury, but a fundamental life-long skill.’
The role of education in financial literacy
Education is a huge part of the Financial National Literacy Strategy. Teaching people how to manage their money effectively can create lifelong habits that lead to greater financial security. As part of the strategy there will be workshops rolled out across primary and post primary schools as well as workplaces and communities to ensure that financial literacy becomes an accessible and ongoing process for people at all life stages.
The ultimate mission of the National Financial Literacy Strategy is to:
Improve the level of financial literacy in Ireland through a vibrant financial literacy ecosystem – increasing cooperation, coordination, and cohesion – and thereby support greater financial wellbeing and resilience.
As an award-winning provider of education programmes in public and private sector organisations across Ireland and a stakeholder in the national financial literacy strategy we welcome it’s launch. We know our employee financial wellbeing programmes help promote financial literacy in the workplace and help HR and Financial well-being leaders across Ireland support greater employee financial wellbeing and resilience.
If you would like to hear more about how we are supporting organisations like yours through our tailored financial wellbeing programmes, then feel free to have a chat with us.
If you would like more details about the strategy, then you can find it here
