When consumers are financially literate, they understand better how bank accounts and credit cards work and what do they mean, as well as how to avoid wrong decisions and excessive debt. In sum, financial literacy impacts the daily decisions an average family makes when trying to manage its budget, savings and investment activities.
Financial education is so much more important these days than it was 20 years ago. Today, consumers face more complex market environments and a variety of financial choices. There are hundreds of credit card options, several types of mortgages, various investment options that lead to complicated financial decision making. Either in emerging, advanced or developing economies, individuals should be financially educated in order to be able to choose the right savings, loan or investments products that respond to their needs and at the same time be in a position to recognise mistakes and weigh any financial risks involved. Individuals are in charge of securing their financial well-being and must have the proper financial knowledge to do so. Moreover, well-informed consumers are critical to a stable and robust economy.
Source: Association of Cyprus Banks