It is important to better understand the relationship between financial literacy and financial stability. Widespread over-reliance on credit, high household indebtedness, a lack of understanding of the implications of changes in economic policy, and a tendency to “follow the herd” are just some of the issues that can lead to significant financial and economic difficulties.

Second, further efforts will be needed to ensure that nobody — no group, no society — is
left behind. Currently, socio-economically disadvantaged students are about twice as likely as advantaged students to be low performers on average in the PISA 2015 financial literacy survey. Students with an immigrant background score 26 points lower in financial literacy, on average, than native-born students of similar socioeconomic status. This is shocking! It is imperative to design targeted policies that recognise and understand the differences between people and seek to address the gaps in outcomes.

Financial literacy has traditionally been part of common wisdom: parents taught their children that “a penny saved is a penny earned” and that “money doesn’t grow on trees”. These proverbs remain wise, but financial literacy is also about a lot more than that, it is necessary to understand online banking, compound interest, loans and mortgage conditions, retirement and investment options as well as job offers. You cannot thrive in this world without sound financial literacy, so our job is to ensure that no one is left behind, and everyone, regardless of age, nationality or socioeconomic status is given the opportunity to acquire and develop these skills.