Italy has the least financially literate population among developed nations surveyed by the OECD. Fewer than four in 10 Italians can correctly answer questions about basic concepts like inflation, compound interest and risk diversification.

40% of Italians aged 18 to 34 never speak about money at home, and the same proportion feel uncomfortable discussing finances, according to a survey by Italy’s central bank.

'We come from a Catholic and Latin culture where money has a negative connotation, it’s associated with greed and avarice,' says Giovanna Paladino, founder and director of Turin's Museum of Saving. 'But understanding money as an end in itself is wrong. Money is a tool that allows us to realise personal and collective desires and projects.'

In Italy, as elsewhere, reticence about money translates into low levels of financial literacy — with negative consequences for individuals, as well as for society as a whole.

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Source: OECD

Victoria – FT social team

Posted by financialtimes

31 comments

  1. It’s interesting that Italy and Spain are so different, considering they are both heavily Catholic southern European countries with a reputation for economic mismanagement.

  2. This prompted me to check what the score is for the US (for context and my own reference as an American) only to see that Italy has us beat. Not terribly surprising, but still sad to see.

  3. a bit of warning on the data :
    it is NOT only about financial knowledge, but also behaviour.
    including keeping track of money flows, searching data before spending, etc.
    in other words, if you have enough money NOT to have to care on how you make most of your spending, you’ll score poorly.

    you’ll also see that the us is suspiciously kept out of the data.

    the knowledge is mostly about financial concepts such as inflation (the definition of inflation and the understanding of time value of money), the benefits of long-term saving/investing, interest and risk.
    in other words : not as much financial litteracy, than investing litteracy.

    and there’s a big lobby at the moment for europeans to invest. so, not exactly a neutral study either.

  6. Sparbuch land being first is the funniest thing i read all week

  7. I’m not even going to look at the comments but I’ll bet there’s at least one northern Italian blaming southern Italians for bringing their average down.

  9. Can’t believe Germany is that high up with this amount of pwople voting CxU, FDP and AFD

  11. Even their children’s shows are about winning money, I can imagine them having a weird concept of a healthy economy.

  13. I’ve lived in both Spain (I’m Spanish) and the Netherlands and the difference is absolutely huge , average Dutch person is much much much much more financially educated and responsible than the average spanish

    So considering that’s something I know first hand I don’t trust the test that I have no idea

  16. Ofc, the Germans at the top 🇩🇪🇩🇪🇩🇪

  17. In their defense, I wouldn’t call inflation a basic concept. I’m not even sure which is worse, people who don’t understand it or those who think it’s a universal percentage for everyone based on a debatable set of products and services.

  18. Is the test posted somewhere? Trying to get through a Friday at work…

  19. Germany is highest ? The nation of renters ? 🤣

  20. You gotta have money to understand Finance.

    As we say “there’s too month left after the paycheck”.

    People don’t have saving mindset because we can’t really save a thing.

  22. What countries aren’t included?
    I’m surprised by not seing some countries, but surprised seeing others.

  23. Canada, Australia, America, and the U.K. not making the list is hilarious to me for some reason.

  25. It’s always amusing to see Mexico being better than anybody at anything because it almost never happens

  26. I know first hand what the state of German financial literacy is. And now I am horrified!!! If that’s gets first place, oh my!

  27. “Select” OECD countries? Show me the actual list. The United States is in the OECD. I’d be curious where it lands in the list. Is Italy actually the lowest? Or is it only the lowest of this selection?

  28. Deutsche kriegen so viel vom brutto weggenommen, die müssen wissen was man aus den 55 Prozent machen kann

  29. The country which basically started institutionalized banking in Europe ranking lowest ist surely a surprise

  30. “Financial literacy” is just capitalist speak for being a useful unit of production. Capitalism is destroying humanity and the world.

  31. I bet the number of tattooed individuals has abstrong correlation with financial illiteracy.

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