8 de setembro de 2025
International Literacy Day: The importance of financial literacy
On International Literacy Day, we highlight the role of financial literacy in everyone's well-being.
International Literacy Day, celebrated on September 8th worldwide, was established by UNESCO in 1966 and its main objective is to raise awareness about the importance of literacy, essential for personal, social, and economic development.
Today, we propose to use this date to reflect on an often-forgotten aspect: financial literacy.
Financial Literacy in Portugal: An Urgent Challenge
In Portugal, financial literacy levels remain below the average of countries participating in studies such as those by the OECD. Despite ranking 7th among 26 countries, indicators of financial knowledge and well-being remain below average.
According to an OECD study, 40% of Portuguese adults do not have an acceptable level in problem-solving and numeracy. Data from 2023, from the European Commission, also indicate that "only 11% of Portuguese have a high level of financial literacy. This is the lowest in the EU."
Furthermore, the results of PISA (Programme for International Student Assessment) 2022, a questionnaire organized by the OECD, which assesses the knowledge and skills necessary for the social and economic life of 15-year-old students, point to an 11-point drop compared to 2018, with an average of only 494 points, below the OECD average, which reflects an urgent need for intervention.
Determining Disparities
The OECD report (2023) on digital financial literacy in Portugal indicates significant differences based on education level, age, income, and region. For example, citizens who have only completed basic education, are elderly, or reside in Madeira, tend to have a lower level of digital financial literacy.
Another investigation points to five key factors that influence financial literacy in Portugal: the perception of financial situation, planning and control of personal finances, perception of risky and risk-free assets, and savings.
Why is Financial Literacy essential? Globally and in Portugal
Financial literacy is not just a set of technical skills; it is a foundation for inclusion, financial well-being, and resilience against fraud and inequalities.
Internationally, less than a third of adults understand simple concepts like interest rates and risk, according to a World Bank study.
Why is financial literacy important?
- It helps to understand how money directly affects our well-being.
- It allows for better management of personal finances and increases financial freedom.
- It is the driving force for creating a consistent financial plan tailored to individual needs.
In Australia, for example, high losses from financial fraud highlight that the greatest protection against scams is financial literacy itself.
The Role of Fintechs like nBanks
This is where our opportunity comes in: fintechs like nBanks can be decisive vectors of financial literacy. How?
Educate while simplifying: explain financial concepts through short and accessible content.
Practical tools: dashboards, simulators, preventive alerts, and best practice guides help people understand and make better financial decisions.
Strategic partnerships: collaborate with schools, associations, or national programs to promote literacy from an early age.
On this September 8th, we celebrate International Literacy Day, remembering that better understanding the financial world is essential for individual and collective well-being.
At nBanks, we work daily to make access to financial information clearer and more accessible. That's why we created the Avança Program, whose objective is to support people and companies in making safer and more conscious decisions, through tools and solutions that promote transparency, simplification, and continuous learning.
Bibliographical References:
https://www.todoscontam.pt/sites/default/files/2024-01/relatorio3ilf2020_en_web.pdf