Historical facts

In the intricate tapestry of Portugal's history, threads of economic challenges have woven a narrative that has had a significant impact on the country's financial literacy. Let’s delve deeper into the historical reasons behind the financial literacy deficit in Portugal:

Economic turmoil

Portugal has resisted economic turbulence throughout its history, marked by periods of instability, financial crises and political changes. These upheavals often left the population faced with economic uncertainty, hindering the development of financial literacy.

Challenges of the educational system

The historical structure of Portugal's educational system may have contributed to the financial literacy deficit. Traditional curricula focused less on practical financial skills, leaving generations with limited exposure to essential financial concepts.

Cultural factors

Cultural attitudes towards money and financial matters can play a key role. In Portugal, a historical preference for traditional savings methods and a perception of complexity surrounding financial systems may have deterred active involvement in financial education.

Portugal at the tail of Europe

Did you know that 19% of Portuguese people have a low level of financial literacy? And that only 11% have a high level? These are some of the conclusions of the first survey on financial literacy carried out in the 27 countries of the European Union (EU), where 26,139 EU citizens were interviewed (1,016 in Portugal) to assess financial knowledge and behavior.

16% of Portuguese respondents said they had a low level of knowledge about financial matters, when compared to other adults in their country. The same percentage (16%) stated they had a high level of knowledge.

It was confirmed that only 16% of Portuguese people had a high level of knowledge. However, the percentage of low knowledge was higher! In fact, 28% of respondents had a low rating! This was the 4th worst result among the 27 countries of the European Union, only surpassed by Greece (29%), Cyprus (30%) and Romania (also 30%). The assessment was carried out by asking five questions on financial topics. Among them, there was this question about inflation: "Imagine the following situation. They are going to give you a gift of €1,000 within a year and, throughout that year, inflation remains at 2%. A year from now, with the €1,000, will you be able to buy: more than you could buy today? The same amount? Less than you could buy today?" Only 55% of Portuguese respondents got it right: they would be able to buy less than today, due to inflation!

In terms of behavior, the Portuguese showed better results: 69% got a high rating and only 8% got a low rating. It should be noted that the Portuguese showed great sensitivity towards important financial behaviors: 97% agreed that, before buying something, they carefully consider whether they can do so; 86% said they monitor their expenses; 78% indicated that they set long-term financial goals and strive to achieve them.

If we combine knowledge and behaviors, what will we look like? Not very well! Only 11% of Portuguese people had a high level of financial literacy, the lowest percentage in the EU, along with Latvia. 19% of Portuguese people still had a low level of financial literacy!

45% of Portuguese people said they were very comfortable and 20% comfortable using digital financial services. The financial product that most Portuguese respondents (40%) had (or had had, in the last two years) was non-life insurance (for example, home or car insurance). The financial products that least Portuguese people (9%) had were crypto securities, including cryptocurrencies. If they lost their main source of income, 30% of Portuguese people said they could last 6 months or more to continue covering their expenses, without borrowing money or moving house. However, 21% said they did not have emergency savings! 23% were not at all confident that they would have enough money to live comfortably during retirement. 36% were also not very confident. 40% of Portuguese people were confident and 6% were very confident in the advice they receive from banks, insurance companies or financial consultants on investments.