EU citizens are not doing well when it comes to financial literacy. Nearly half lack an understanding of basic financial concepts, including inflation.

A third of Europeans do not understand how inflation works, according to a survey by Eurobarometer. The same survey revealed only 18% of EU citizens were able to show a high level of financial literary.

According to the survey, 65% of EU citizens are aware that, in times of positive inflation, the purchasing power of their money decreases, meaning they can buy less than they could before with the same amount of money.

Lack of knowledge about inflation could be seen as concerning

In October 2022, the annual inflation in the EU reached levels not seen before in the previous four decades at 11.5%. While the rising cost of living was the most pressing worry for 93% of Europeans at that time, apparently a third of EU citizens do not know how inflation affects their lives.

The best performers were the Netherlands (43%), Denmark (40%), Finland (40%) and Estonia (39%) where about four in 10 respondents display a high level of financial knowledge.

Romania and Portugal reported the worst scores in high levels of financial knowledge at 13% and 16%, respectively.

  • Neuromancer@lemm.ee
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    7 months ago

    Financially literate people are. I trade in stocks and bonds. Everyone I know does. It’a most likely part of your 401k which most people don’t understand. The test was designed to see you understood basic concepts like what inflation does to money. That’s a basic financial literacy question. Do you understand compound interest, etc.

      • Neuromancer@lemm.ee
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        7 months ago

        I am aware Europeans don’t but I specially said Americans. Most likely that’s why they are poor. If you don’t understand how money works, you’re doomed to fail.

        They could use an Ira if they do not have a 401k. Tax deductible and same concept.

        • Flying Squid@lemmy.worldM
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          7 months ago

          I knew you’d blame poor people for being poor because they weren’t financially literate.

          Although your type usually blames them for not pulling themselves up by their bootstraps and starting a small business. I guess that’s gone out of fashion for conservatives these days.

          • Neuromancer@lemm.ee
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            7 months ago

            Well how are they going to start a business if they are not financially literate? They’d fail.

            I grew up poor. Most my Friends were dirt poor. None of us are poor now.

            Now I have plenty of poor family but they are financially illiterate.

            It’s a skill everyone should be taught in school.

            • Flying Squid@lemmy.worldM
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              7 months ago

              Ah yes, the “I was poor once and now I’m rich so anyone poor person who is poor isn’t trying hard enough” chestnut. Haven’t heard that one from a conservative in a week or so. It usually isn’t even true.

              But sure, you and “most of your friends” both grew up “dirt poor” and are now all well off. That’s very believable and I’m sure no one would doubt that story.

              Do go on though, tell me about the time you had to live in a tent in the woods with your dad for a couple of years while you went to high school since you were “dirt poor” like the definitely dirt poor girl at the library where my wife works. We bought her a tent so she could have some privacy. I’m guessing that would be giving her an undeserved handout in your book.

              • Neuromancer@lemm.ee
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                7 months ago

                Weird how you turned this into a discussion about an article into an attack on me. Since you have once again resorted to person attacks, I’ll end the conversation here.

                  • Neuromancer@lemm.ee
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                    7 months ago

                    It’s your MO. You started attacking my political beliefs even though I never brought it up and it had nothing to do with the topic. You just wanted to make a personal attack. You can’t talk about issues, you always talk about people. It’s sad. This is the second time in two days you have went out of your way to talk about me instead of the topic.

                    Do better.