The professors from the School of Technology and Management of Viseu (ESTGV) who conducted the study concluded that “the level of financial literacy among Portuguese students, particularly first-year university students, remains a concern” as they “demonstrate significant gaps in essential concepts of personal finance.”
The study’s sample included 172 responses from first-year students at ESTGV (58.7% men and 41.3% women), with 72.7% enrolled in undergraduate courses and the rest in Higher Professional Technical Courses (CTeSP).
This study compared the data with a similar one conducted in 2022, revealing “a decrease in the level of financial literacy among young people.”
A “financial literacy average value” of 44.36 was recorded (on a scale of 0 to 100), representing a decline from the previous study’s average of 47.53.
“Despite 68% of students choosing a course in the Management area, more than one-third of participants cannot calculate simple percentages. Additionally, almost half (47.7%) do not understand the impact of inflation, and only 29.1% can grasp the concept of compound interest,” concluded the educators.
The study also revealed that “almost 46% do not understand the concept of paying interest on loans” and “78% do not know what Euribor or the Spread is.”
The students were aware of their lack of financial knowledge, with about 63% of respondents stating “they have never had contact with financial matters during compulsory schooling.”
In the authors’ opinion, “the data indicate that recent educational policies from the Portuguese Government aimed at introducing financial topics in education need to be reviewed and adjusted.”
“The implementation of more robust financial literacy programs, relevant and effectively provided to the generality of students (i.e., as part of compulsory education) is, therefore, a crucial measure to prepare young people for the responsible management of their personal finances, especially in a context of growing economic complexity,” they argued.
Manuel Reis, Paula Sarabando, Rogério Matias, and Tiago Miguel emphasized the need to “rethink the financial education model in the country throughout the compulsory education journey,” as “financial education is an essential pillar for the future of Portuguese society.”
“The lack of financial knowledge can have lasting impacts, not only for individuals but also for the country’s economy,” they warned.
