Financial literacy gap in Cyprus
A recent study by the Economics Research Center at the University of Cyprus has brought to light issues regarding financial literacy.
Titled “Financial Literacy for Financial Resilience: Evidence from Cyprus during the Pandemic Period,” the study found that in 2021, under four in 10 respondents had a good understanding of financial concepts, meaning many people lacked the knowledge needed to make informed financial decisions.
The study also revealed that more than one out of three Cypriots is financially vulnerable, meaning they would not be able to handle an unexpected expense without borrowing money or seeking help. Additionally, around six out of 10 respondents did not have enough savings to cover three months’ worth of living expenses if they were to lose their main source of income. This lack of savings was particularly pronounced among young people, the unemployed, those with low incomes and larger households.
The Economics Research Center stressed that many households in Cyprus were ill-prepared to deal with the financial challenges brought on by the pandemic, and a good understanding of financial concepts is crucial for financial resilience.
