Financial literacy

Financial literacy means the knowledge and skills needed to make important financial decisions. Every day, thousands of people are deciding where to open a bank account, which mortgage to choose, where to invest their money and how to save for retirement.

However, according to the OECD/INFE 2020 international survey of adult financial literacy, about half of the EU adult population does not have a good enough understanding of basic financial concepts. While the overall figures are low, the problem is more acute in some parts of society than others, with the most vulnerable disproportionally affected. Low-income groups, for instance, as well as women, young people and older people, tend to score lower than the rest of the population when it comes to financial knowledge.

You need to be aware of financial risks and opportunities, to make informed choices and to know where to go for help. If you experience problems with a financial service provider, contact a European Consumer Centre or the consumer organisation in your country.

The financial competence framework for adults in the EU details the skills and knowledge that adults need when it comes to personal finance, especially in light of changes driven by technology and sustainability. A joint effort by the OECD’s International Network on Financial Education (OECD-INFE) and the European Commission to strengthen financial literacy in the EU.

Have you ever received a text message pretending to be from your bank and asking for your personal details? Commissioner McGuinness invites you to think twice before you click.

Customers across the EU are making more and more online payments, and fraud has been rising in recent years. EU rules allow you to shop and pay online safely.

If your bank account was refused in another EU country, that is illegal. Did it happen to you when you were trying to pay your taxes or bills in another country? You can report it.

The money you have in the bank is protected up to 100,000 euros, no matter what happens to the bank. This is called deposit insurance, and it is financed by the banking sector itself.

If you want to buy a house, you may need a mortgage. This is a loan that generally uses the house as guarantee. Do you know about your rights when getting a mortgage?

The Pan-European Personal Pension Product, or PEPP, is a voluntary pensions product complementary to state-based and occupational pensions. It is open to everyone and portable across the EU.

Green bonds allow companies or governments to borrow large amounts of money to invest into green projects or technologies.

A crypto-asset is a digital representation of value or rights which may be transferred or stored electronically, typically using distributed ledger technology.

Money laundering is the process by which criminal proceeds are ‘cleaned’ so that their illicit origin is concealed. The European Commission has put forward an ambitious package of legislative proposals to strengthen the EU’s anti-money laundering and countering the financing of terrorism (AML/CFT) rules.