Financial knowledge helps people manage everyday expenses, prepare for unexpected costs, and make informed decisions about saving and investing.

However, many people lack the practical skills needed to evaluate financial products and understand potential risks. European Commission announced two initiatives designed to strengthen financial literacy across the European Union by identifying effective educational programs and encouraging higher standards for organizations providing financial guidance.

Why Financial Literacy Matters

Financial literacy involves understanding budgeting, saving, borrowing, investing, and financial risk. These skills can help people compare financial products, manage expenses, and plan for future needs.

According to a 2023 Eurobarometer survey cited by the European Commission, only 18% of EU citizens demonstrated a high level of financial literacy. This finding highlights the need for accessible education that explains financial concepts clearly and supports informed decision-making.

Initiative One: Sharing Successful Programs

The first initiative invites individuals and organizations to submit examples of financial literacy programs that have demonstrated successful results, particularly in saving, investing, and understanding financial risks.

The Commission intends to analyze these examples to identify effective approaches and common success factors. The findings will contribute to a report that can help educators and relevant organizations improve their own programs. Sharing practical experience is valuable because different audiences have different needs. Students, working professionals, and people approaching retirement may benefit from different teaching methods and financial examples.

Initiative Two: A Voluntary Code of Conduct

The second initiative seeks stakeholder contributions toward a voluntary European code of conduct for private and nonprofit organizations delivering financial literacy activities. The proposed code aims to encourage clear educational objectives, accurate and unbiased information, and safeguards against conflicts of interest.

These principles are important because financial education can overlap with commercial interests. Transparent guidance helps learners distinguish educational information from product promotion and evaluate financial choices more objectively. The stakeholder call was scheduled to close on 16 September 2026, with adoption of the proposed code anticipated in the first quarter of 2027. Its effectiveness will depend on participation and how consistently the principles are applied.

Maria Luís Albuquerque, European Commissioner for Financial Services and the Savings and Investments Union, stated in remarks published in September 2025: “Financial literacy is key to wellbeing and independence.”

What Effective Financial Education Requires

Useful financial education should connect basic concepts with everyday situations. Budgeting lessons can demonstrate how to organize household expenses, while saving activities can explain the value of planning ahead. Investment education should address fees, uncertainty, and the possibility of financial loss.

Digital awareness also matters. People need to recognize suspicious financial messages, protect personal information, and check the reliability of claims before making decisions. Programs should also measure their effectiveness. Assessments and practical exercises can reveal whether participants have improved their ability to compare products, manage expenses, and recognize risks.

The European Commission's two initiatives address different but complementary aspects of financial literacy. One promotes the exchange of successful educational practices, while the other seeks to strengthen standards for organizations delivering financial education.

Their lasting impact will depend on implementation and measurable improvements in financial understanding. By encouraging practical learning and greater transparency, these efforts could help people make more informed financial decisions and manage their resources with greater confidence.