According to the OECD definition, “financial education is a process by which consumers, savers and investors improve their ability to understand financial products and the concepts behind them, and through instruction, information, advice develop attitudes and knowledge to understand the risks and opportunities for making informed choices, where to receive support or help in making those choices, and what actions to take to improve their status and level of protection.”

Citizens’ financial literacy is an essential element for a country’s economic prosperity, and it is all the more essential if its spread is supported by a coordinated effort involving all stakeholders in the economic system: regulatory bodies, the banking and financial sectors, the media, the education system, and consumer associations. On the other hand, although regulatory and educational initiatives organized at the EU and institutional levels are constantly increasing, financial literacy in our country—defined simply as the average citizen’s ability to navigate the most common financial instruments with ease—remains a goal yet to be achieved. In recent years, the complexity of financial guidance and decision-making faced by individuals has increased due to profound changes in the financial services sector for households and businesses, with an increasingly segmented and specialized market and a wide range of products (checking accounts, ATM cards, credit cards, mortgages, personal loans, auto liability insurance, family liability insurance, life and accident insurance, health insurance, savings/investment products) that, having become so widespread, are often chosen neither prudently nor in a timely manner. In this context, it is necessary to launch and nurture a new initiative in financial literacy that helps citizens who are savers acquire the essential economic and financial knowledge needed to manage their resources effectively. To this end, action must be taken on two fronts: on the one hand, these topics must be presented as a central element of our students’ daily development, enabling them to develop greater awareness so they can make the best possible choices for their future and become responsible citizens; on the other hand, teachers themselves must acquire the necessary knowledge to integrate these topics into everyday school life, to explore the basic concepts of economics in the classroom, and to help students recognize how these concepts are part of their daily lives and are present in everyone’s world.

Economic and financial literacy continues to be our country’s Achilles’ heel. A survey by Standard & Poor’s reveals how Italy is at the tail end among advanced countries, with nearly two out of three Italians unable to give the correct answer to elementary questions on economic and financial topics. Our country remains last among G7 economies in terms of financial literacy. And our students rank second to last in an OECD study among 18 countries.

In recent years, some steps have been taken, but they are still not enough. Through an amendment to the 2017 “Salva Risparmio” decree, which allocated 1 million euros, the Committee for the Planning and Coordination of Financial Education Activities was established, headed by Donato Masciandaro, plus ten members appointed by the Ministry of Economy and Finance, the Ministry of Education and Merit, the Ministry of Enterprise and Made in Italy, the Ministry of Labor and Social Policies, the Bank of Italy, Consob, Ivass, Covip, Ocf, and the National Council of Consumers and Users. The goal is to “plan and promote financial literacy and awareness initiatives to measurably improve Italian citizens’ skills in the areas of savings, investments, retirement planning, and insurance.”

To date, the supply of financial literacy in Italy is growing, but it still remains fragmented. There are more than 250 stakeholders and as many initiatives, but these are experiences related to individuals. Experimental and not structural initiatives, which are what we would need instead. Starting precisely with the introduction of financial education into the school curriculum, on par with subjects such as math, Italian or English. It is since 2005 that the OECD has recommended how schools should be a preferred channel for financial education. This is for future savers. But we also need to think about those who are already adults, with initiatives that protect and guide investment choices.

This is also because, as explained in an article written by Annamaria Lusardi, along with Pierre-Carl Michaud and Olivia S. Mitchell, and published in the *Journal of Political Economy*, 30–40% of the inequality in lifetime wealth accumulation can be explained by differences in financial literacy. Eliminating inequality also depends on financial literacy classes in school. Why not introduce them?

To learn more, visit the Ministry of Economy and Finance website.