Financial Literacy in Lithuania – the Road Ahead

Problem

The topic of financial literacy encompasses a variety of interrelated concepts, the differences and importance of which may not be apparent at a first glance. The Organization for Economic Co-operation and Development (OECD) defines financial literacy as „a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing.” (OECD, 2011) 

A financially literate person has appropriate competencies, is motivated to use the knowledge available in order to foster their financial well-being and pursue their financial goals. Financial literacy includes both financial knowledge and financial behaviour. Therefore, when assessing a person’s level of financial literacy, it is important to determine how much their behaviour differs or matches their financial knowledge. 

The Lithuanian Banking Association (LBA) has conducted three adult financial literacy surveys between the years 2019 and 2023. According to the LBA president Dr. Eivilė Čipkutė, the growth and change in this area is slow and inconsistent, thus a long-term strategy and investment of resources are essential (LBA, 2023). The 2018 OECD 15-year-old PISA study revealed that the financial literacy of Lithuanian students is growing – in the period between 2015 and 2018 the rise in scores was the highest among all the countries that participated in the study and approached the OECD average (NŠA, 2021). A financial well-being study conducted by “Swedbank” in 2023 reveals that a third of the Lithuanian population is financially vulnerable and their general financial well-being is only average. Thus, the topic of financial literacy must be prioritised if we seek to improve the economic well-being of both the people and the country itself. 

Sources:  

Lietuvoje finansinis raštingumas nepagerėjo: siekis ugdyti visuomenės žinias – maratonas, o ne sprintas | Lietuvos bankų asociacija (lba.lt) 

Finansinės sveikatos indeksas: kokie didžiausi lietuvių finansiniai iššūkiai? | blog.swedbank.lt 

49319977.pdf (oecd.org) 

PISA2018_Ataskaita_skelbimui.pdf (smm.lt) 

Goal

The goal of the project is to create a system that ensures the effective development of financial literacy in Lithuania long-term. 

Participants

2022/23

Simona Deduchova