Finland eyes world’s best financial literacy

Finns will have the world’s best financial literacy by 2030, according to the goal of the financial literacy strategy proposal issued by the Bank of Finland on Thursday.

The aim is that as many people as possible would understand the importance of financial literacy in their lives and are capable of making good financial decisions, said a government press release, quoting the proposal.

Bank of Finland Governor Olli Rehn issued the national strategy proposal for promoting Finland’s financial literacy to Minister of Justice Anna-Maja Henriksson.

According to the strategy proposal, achievement of the targeted state calls for a change in operating methods. From the point of view of individuals, their ability to understand and anticipate their financial situation better is of key importance. Easily accessible low-threshold guidance and information services must be available which everybody can use. The proposal emphasises that citizens’ better financial literacy produces well-being not only for themselves but also for the entire national economy.

The strategy proposal prepared by the Bank of Finland is the first of its kind in Finland.

The Bank of Finland and the Ministry of Justice agreed a year ago that the Bank of Finland would be responsible for drawing up a national strategy on managing personal finances.

“The financial literacy of Finns is good on average, though there are differences between population groups. With systematic, well-resourced financial literacy work, it is possible to broadly improve citizens’ knowledge and skills and thereby prevent over-indebtedness and other financial problems,” said Olli Rehn.

“This is an important objective, which I strongly want to advocate. Questions related to over-indebtedness are especially topical these days, and strengthening citizens’ financial literacy is a key goal. I am glad that the proposal focuses on the ‘positive aspects’ of financial literacy, i.e., good financial management, saving and investment,” said Henriksson.

Financial literacy is being promoted by the state authorities as well as many companies and third-sector actors.

The strategy proposal emphasises the need to facilitate their cooperation and access to sources of up-to-date information. In addition, the activities should be coordinated better. All this will improve the effectiveness of the activities and the use of resources. It has been proposed that a function in the administrative branch of the Ministry of Justice to support and coordinate field work be established.

“I support the proposal to set up a new function in the administrative branch of the Ministry of Justice to coordinate the strategic work for economic literacy. This is important in order to put the proposed development targets quickly into practice,” added Henriksson.

The strategy proposal was prepared under the supervision of the Bank of Finland and together with key actors and researchers in the field.