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Cyprus Introduces Financial Literacy in Primary Schools

Strategic Insights

— 2 min read

Financial literacy is set to become a standard part of the Cyprus education system, starting from September 2025, as sixth graders will learn about money management through a specially designed fairy tale. The book, "70 Interest and a Hole in the Shoe," is aimed at teaching children the basics of financial responsibility, including income, expenses, budgeting, and saving for the future. This initiative is part of a broader national strategy for financial literacy and education, which also includes plans for a mandatory financial education course in secondary school.

Key Takeaways:

  • Cyprus will introduce financial literacy in primary schools from September 2025, using a children's fairy tale to teach the basics of money management.
  • The book, "70 Interest and a Hole in the Shoe," will be included in the Health Education curriculum and accompanied by classroom activities that focus on income, expenses, budgeting, and saving for the future.
  • Students will also learn to distinguish between needs and wants, discuss social and economic inequalities, and be warned about online fraud.
  • Professor of Finance at the University of Cyprus, Andreas Milidonis, believes that the early development of money management skills will contribute to the formation of financially responsible individuals and households for the future.
  • The initiative is part of the national strategy for financial literacy and education and is described as the third step towards a broader goal.
  • The next stage is to establish a mandatory Financial Education course in the third year of secondary school, taught by specially trained staff.
  • The fairy tale defines "interest" as a form of digital money and aims to instil a savings culture and a sense of responsibility in loan repayment.
  • The move follows steps already taken in recent years to tackle Cyprus' low levels of financial literacy, with only 36.9 per cent of people aged 18 to 24 displaying adequate financial knowledge according to survey data.
  • The education ministry has joined forces with various organizations to shape a national strategy, which involves integrating financial education into the curriculum and drawing on models from the OECD and European Commission.

Statistics:

  • 36.9 per cent of people aged 18 to 24 in Cyprus display adequate financial knowledge according to survey data.
  • The government aims to equip young people with financial literacy, considering it "essential" given recent economic challenges.
  • The national strategy for financial literacy and education has been sanctioned by the Council of Ministers in June 2022.
  • The program began with gymnasium students, where financial literacy was taught over six periods during the school year.
  • Only 36.9% of the people aged 18 to 24 demonstrated financial literacy.

Sources:

  • Cyprus Mail: Interview with Education Ministry officials, where they mentioned that only 36.9 per cent of people aged 18 to 24 displayed adequate financial knowledge.
  • Council of Ministers: Sanctioned the national strategy for financial literacy and education in June 2022.
  • Organisation for Economic Cooperation and Development (OECD): Provided models for integrating financial education into the curriculum.
  • European Commission: Contributed to the development of the national strategy for financial literacy and education.
  • Cyprus Securities and Exchange Commission (CySEC): Participated in shaping the national strategy for financial literacy and education.

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