Private economy

What is financial literacy?

Financial literacy is about having the right combination of awareness, knowledge, skill, attitude and behaviour to make sound financial decisions and ultimately achieve financial wellbeing. It’s about understanding various financial concepts, products and risks, and applying this knowledge in real-life situations.

Morher and daugther conversing in living room

Learning to be financially literate is like learning a new language, but instead of words and phrases, you're learning about money. Being financially literate helps you make informed decisions, take control  of your personal finances and plan for the future. 

Examples of financial literacy skills include:

  • Budgeting: Creating a plan for your income and expenses. Example: Setting aside money each month for rent, groceries and savings.
     
  • Understanding interest: Knowing how interest works on loans and savings accounts. Example: Realising that a credit card with a high interest rate can lead to more debt if not paid off quickly.
     
  • Saving and investing: Putting money aside for future goals and making it grow. Example: Saving for a deposit on a house or investing in stocks for retirement.
     
  • Managing debt: Understanding how to handle loans and credit responsibly. Example: Paying off student loans on time to avoid penalties and maintain a good credit score.
     
  • Digital skills: Being able to handle online banking tools and detect scams and fraud attempts. Example: Understanding how an investment platform works, while also being aware of fake versions and promises of unrealistically high returns.

Good financial literacy not only helps build a secure future but also protects against financial vulnerability and distress. Sound financial judgement reduces the risks of over-indebtedness, excessive risk-taking and exposure to fraud and financial crime. 

As most banking, budgeting and investing now take place online, people also need to feel confident navigating online tools securely and effectively. Good digital behaviour supports informed decision-making, protects against cyber risks and ensures active participation in today’s fast-changing financial landscape.

33%

of adults worldwide are financially literate.

Financial literacy in the Nordics 

According to the Standard & Poor’s Rating Services Global Financial Literacy Survey,  only 33% of adults worldwide are financially literate, which contributes to wealth gaps that are closely linked to differences in life expectancy. 

Financial literacy is also lower among women than men. According to the World Economic Forum, closing this gender gap is crucial for advancing women’s equality, promoting economic empowerment and fostering inclusive economic growth. 

In the Nordics, the picture is far better with around 70% of the population financially literate. Although this figure is much higher than in most countries, certain population groups still need support. As lifespans increase, building financial resilience for later life – often called longevity literacy – becomes increasingly important. Young people also need attention as they are often keen to invest and need the right skills to make informed decisions that might impact the rest of their lives. 

Why is financial literacy important to Nordea?

For Nordea it is a key priority to help maintain and improve financial literacy in the countries where we operate. When people manage their finances well, they contribute to a secure future for themselves and the overall health and stability of their country's economy. 

As the largest financial services group in the Nordics, we have significant capacity to support Nordic societies in strengthening financial literacy – and promoting financial skills is at the core of our community engagement efforts.

What we do

To deliver on our community engagement programmes we work closely with a number of local and national non-profit organisations in the Nordic countries as well as in Poland and Estonia. Currently, we collaborate with around 70 local and national partners, and all Nordea employees are encouraged to volunteer up to 16 hours per year as part of these programmes. 

Through these partnerships we reach thousands of children and young people annually with our financial skills activities. We also offer knowledge-sharing sessions on topics such as digital safety and fraud prevention, aimed at refugees, seniors and other individuals who may need extra help navigating digital services. 

Examples of initiatives for children and young people include Pengeugen in Denmark, Ungt Entreprenørskap in Norway, the Taloussankari (Money Master) competition in Finland and Matteutmaningen in Sweden. 

For entrepreneurs and startups we offer different types of mentoring and financial advisory services, depending on the maturity of their business ideas. Through our Investor Speed Dating events we help Nordic startups secure funding from global investors. And through activities like För-orten we nurture more ideas and boost the confidence of those who may be less familiar with the concept of entrepreneurship. 

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