Building financial confidence: the EU’s new Financial Literacy Strategy

Why financial literacy matters

Financial literacy is defined as the combination of awareness, knowledge, skills, attitudes and behaviours needed to make sound financial decisions. It enables individuals to manage budgets, save and invest wisely, plan for retirement, and avoid over-indebtedness and fraud.

Yet, levels of financial literacy remain alarmingly low. According to the 2023 Eurobarometer survey, only 18% of EU citizens demonstrate a high level of financial literacy. Women, young adults, older people and lower-income groups are particularly affected.

At the same time, half of Europeans (49%) lack sufficient savings to cover three months of expenses, leaving many vulnerable to financial shocks. The Commission highlights that digitalisation and the growing complexity of financial products make the need for financial literacy more urgent than ever.

Objectives of the new strategy

The EU Financial Literacy Strategy aims to give citizens the tools to make informed financial decisions and to participate safely in Europe’s capital markets. It supports financial inclusion, economic resilience, and a stronger investment culture.

Recognising that a “one-size-fits-all” approach is not effective, the strategy emphasises tailored actions for different population groups, from youth and women to low-income households and older adults.

Four pillars of action

The Commission’s approach is structured around four key pillars:

1. Coordination and best practices

• Facilitate mutual learning among Member States.
• Identify effective initiatives and “teachable moments” for target groups.
• Develop a voluntary European code of conduct for private and not-for-profit organisations involved in financial literacy, ensuring transparent and unbiased education.

2. Communication and awareness-raising

• Launch an EU-wide awareness campaign on money management, debt, retirement planning, risk management, and fraud prevention.
• Establish a network of national “financial literacy ambassadors” — public figures who will promote financial literacy as a European cause.

3. Funding for initiatives and research

• Encourage Member States to leverage existing EU funding (Erasmus+, ESF+, Technical Support Instrument, Single Market Programme).
• Create a dedicated EU webpage listing financial literacy funding opportunities.
• Promote research on the effectiveness of literacy initiatives.

4. Monitoring progress and assessing impacts

• Conduct a second EU Flash Eurobarometer on financial literacy in 2027, with regular updates thereafter.
• Develop evaluation tools to measure behavioural outcomes, such as saving rates or participation in pension schemes.
• Integrate financial literacy monitoring into the European Semester process.

Implementation timeline

• 2026: Launch of EU awareness campaign and ambassadors’ network; thematic meetings and workshops with stakeholders.
• 2027: Ministerial-level event on progress; publication of the next Eurobarometer results; first EU report on best practices and outcomes.

Sources:

• European Commission press release on the Financial Literacy Strategy (30 September 2025)
• Communication from the Commission on a Financial Literacy Strategy for the EU (COM(2025) 681)