Podcast

Director’s Cut: Making Europe financially literate

This week's guest on the Director’s Cut of ‘The Sound of Economics’, Annamaria Lusardi, raises the urgent need to adopt policies that seek to improve people’s understanding of financial concepts and risks, in conversation with Bruegel deputy director Maria Demertzis.

By: Date: June 19, 2018 Topic: Banking and capital markets

According to Annamaria Lusadi, academic director at the Global Financial Literacy Excellence Center, financial literacy requires both a knowledge of financial concepts and the confidence to make effective financial decisions in order to maximise one’s well-being.

Financial literacy is not only limited to knowledge of monetary calculations, but is also measured by the extent to which individuals understand their financial rights and obligations, in addition to their ability to educate themselves on financial matters.

People are increasingly expected to have the appropriate skills to manage their own financial decisions; however, the rapidly shifting financial environment often proves to be extremely complex to understand and, thus, leaves many with poor financial literacy abilities. The young, the elderly, women, and people with low-education levels are particularly susceptible to the negatives effects of low financial literacy. The consequences of the situation are harmful both for the individual and at a national level.

Just as reading and writing skills are a part of the educational curriculum, Annamaria Lusadi believes that financial literacy courses should now be a requisite part of school programmes. Moreover, the adult population should also have access to workplace and public financial education programmes. All in all, good financial literacy skills have long-term beneficial effects; sound financial decisions take today’s resources and invest them in the future. As a result, policy-makers should redouble their efforts in this area.

Maria Demertzis has co-authored a Bruegel Policy Contribution with Uuriintuya Batsaikhan on financial literacy and inclusive growth in the European Union.

Annamaria Lusardi previously made a presentation at the Bruegel event, ‘The importance of being financially literate’.

Read article More by this author
 

Podcast

Podcast

Rethinking fiscal policy

A look at the past, present and future of fiscal policy in the European Union with Chief economist of the European Stability Mechanism, Rolf Strauch.

By: The Sound of Economics Topic: European governance, Macroeconomic policy Date: October 20, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

Will ‘common prosperity’ address China’s inequality?

Why is China reviving this old mantra?

By: The Sound of Economics Topic: Global economy and trade Date: October 13, 2021
Read article More by this author
 

Podcast

Podcast

Is tech redefining the workplace for women?

Laura Nurski, Sabine Theresia Köszegi and Giuseppe Porcaro explore the relationship between artificial intelligence and job transformation and ask whether the impact differs by gender.

By: The Sound of Economics Topic: Digital economy and innovation, Inclusive growth Date: October 6, 2021
Read article More by this author
 

Podcast

Podcast

A green fiscal pact

How can the European Union increase green public investment while consolidating budget deficits?

By: The Sound of Economics Topic: European governance, Macroeconomic policy Date: September 29, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

Exploding energy prices

Why the sudden spike in European electricity and gas prices?

By: The Sound of Economics Topic: Green economy Date: September 23, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

Unboxing the State of the Union 2021

In this Sound of Economics Live episode, Bruegel experts look at the State of the Union address delivered by Ursula von der Leyen, President of the European Commission.

By: The Sound of Economics Topic: Macroeconomic policy Date: September 15, 2021
Read article
 

Blog Post

Inclusive growth

Remote work, EU labour markets and wage inequality

More remote working in the wake of the pandemic could exacerbate wage inequality, with young workers, women and the low educated potentially losing out.

By: Georgios Petropoulos and Tom Schraepen Topic: Digital economy and innovation, Inclusive growth Date: September 14, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

A Late Bloomer: where is China’s climate plan?

The world awaits China's concrete plan on carbon reduction, but the country is following its own pace.

By: The Sound of Economics Topic: Global economy and trade Date: September 8, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

The EU recovery fund - state of play and outlook

Live from the Annual Meetings: Bruegel Director Guntram Wolff discusses the EU recovery fund, its state of play and outlook with Nadia Calviño, First Vice-President and Minister for Economy and Digitalization of Spain and Professor Karolina Ekholm of Stockholm University.

By: The Sound of Economics Topic: Macroeconomic policy Date: September 1, 2021
Read article More by this author
 

Podcast

Podcast

Environmental, societal and governance criteria: hit or miss?

Is sustainable investing contributing to society’s climate and social goals, or preventing systemic change?

By: The Sound of Economics Topic: Banking and capital markets, Green economy Date: August 26, 2021
Read article More by this author
 

Podcast

Podcast

Are robots taking our jobs?

What will be the impact of automation on the economy? Bruegel's own Giuseppe Porcaro discusses with Aaron Benanav, Laura Nurski, and Alexis Moraitis.

By: The Sound of Economics Topic: Digital economy and innovation, Inclusive growth Date: July 20, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

A fitting plan for the European Green Deal?

How does the world's first roadmap for meeting climate goals stack up?

By: The Sound of Economics Topic: Green economy Date: July 15, 2021
Load more posts