Financial literacy is a key skill that affects a person’s quality of life, well-being, and ability to make sound economic decisions. However, recent studies show an alarming trend: a large part of Ukrainian teenagers do not have even a basic level of financial knowledge. This means that the future generation risks facing financial difficulties without being able to effectively manage their own funds.
According to the international PISA study, which was conducted by the Ukrainian Center for the Evaluation of the Quality of Education, almost 18% of Ukrainian teenagers did not reach the second level of financial literacy – the minimum level that allows one to navigate financial issues and make informed decisions in familiar situations. This problem is also exacerbated by socio-economic inequality: children from low-income families have significantly lower financial literacy rates than their peers from wealthy families. Why does this happen, what are the risks and what can be done to change the situation?
The results of the study on the financial literacy of teenagers
About 18% of Ukrainian teenagers do not have basic financial literacy skills, which indicates their lack of preparation for making financial decisions in the future. Such conclusions were published by the Ukrainian Center for the Evaluation of the Quality of Education based on the results of the PISA international study.
At the same time, teenagers from low-income families score 87 points less on average than their peers from wealthy families. This means that children from poorer families not only have less financial knowledge, but may also have less chance of improving their well-being in the future. They often face financial difficulties without having sufficient education to solve them.
Reasons for this phenomenon:
Lack of financial education in the family. Children learn financial skills mostly at home. If parents do not have money management skills themselves, they cannot pass this knowledge on to their children.
Less access to additional educational resources. In wealthy families, children have more opportunities to study in private schools, attend economics courses, and receive advice from financial consultants.
Limited opportunities for practical experience. In affluent families, children can practice money management skills at their own pocket expenses, try to save money, and participate in family budgeting. Children from low-income families are often forced to work to support the family and do not have the opportunity to experiment with financial decisions.
How financial illiteracy affects the lives of teenagers
Lack of financial education in childhood leads to serious problems in adult life. People who do not understand the basics of financial planning risk:
- Falling into debt traps – taking loans on unfavorable terms, accumulating debt on credit cards or borrowing money at high interest rates.
- Not being able to manage income – spending money impulsively without having a clear strategy for saving or allocating funds to priority needs.
- Not having savings for the future – not understanding the importance of savings, retirement contributions or investing.
- Falling victim to fraud is trusting financial scams, fake investment schemes, scams related to cryptocurrencies or the forex market.
Research confirms that if a child has not received basic financial knowledge at school or at home, he is likely to learn it only through his own mistakes. And such mistakes can be costly.
Financial education in schools
Although the school curriculum includes some aspects of financial literacy, they are not presented in a sufficiently practical and understandable way for children.
Financial literacy is studied only superficially. The basics of economics, which are included in the school course, often do not have an applied nature. Students do not learn budgeting, spending planning or banking basics.
There is no systematic approach. In most Ukrainian schools, financial literacy is not given enough attention, and it is considered only as an additional component of education.
Lack of real examples. Financial literacy lessons are often limited to theoretical knowledge, without offering children the opportunity to apply it in practice.
How to fix the situation
In order to improve the level of financial literacy of teenagers, it is necessary to carry out comprehensive measures:
Implementation of mandatory financial literacy lessons. A separate course should appear in schools that would teach children the basics of financial planning, budgeting, lending and savings.
Creation of interactive programs. Teaching financial literacy should be not only theoretical, but also practical: for example, through economic games, simulations of managing one’s own budget, and digital learning platforms.
Involvement of parents. If children are not receiving financial knowledge at home, programs need to be created to help parents pass these skills on to their children.
Access to online courses and mobile applications. In today’s world, financial knowledge can be acquired through digital resources, so it is important to develop educational programs in the format of mobile applications or interactive platforms.
Therefore, the results of the PISA study confirm that a large part of Ukrainian teenagers are not ready for financial independence in adulthood. Lack of basic money management knowledge can lead to debt problems, poor financial stability and economic vulnerability.
To solve this problem, a systemic approach is needed: reforms in school education, practical training and involvement of families in the process of financial education. Money is not just a number, but a tool that helps people manage their lives. And if children do not learn this from an early age, they will pay dearly for their mistakes in adulthood.
