At a very early age, at school, we learn to count and master sometimes complex mathematical concepts. Are we, however, capable, in practice, of understanding basic financial concepts or navigating banking services? Isn’t the implementation of specific education on these issues an equality issue?

According to the Banque de France , 41% of French people believe they do not have sufficiently reliable and neutral information to manage their budget effectively, 69% consider their knowledge of financial matters to be average or poor and 80% consider that financial education is necessary at school.

Since 2016, like 70 other countries, France has adopted a national strategy for economic, budgetary and financial education ( Educfi ). In concrete terms, each year, an awareness week is organized internationally by the OECD, and the Banque de France is the French relay.

In middle schools, the Educfi passport is aimed at students in the eighth grade, SEGPA (Sector of Advanced Studies), ninth grade, pre-vocational studies, and vocational pathways. But in the face of the challenges facing our society, are these programs sufficient?

What is financial education?

Financial education ( also called financial literacy ) consists of knowing how to manage your budget, understanding what credit involves, adopting the right reflexes against scams, mastering the security of your means of payment, optimizing your savings and investments, and this, throughout your life .

These skills are a vector of civic emancipation and autonomy, they allow young people to better anticipate the hazards of life (unemployment, debts, unforeseen events). The lack of financial education is identified as a factor of vulnerability in the face of easy credit, bank overdrafts or digital scams .

In 2023, based on financial knowledge , relationship with money and behavior in practical situations, the culture of French people over 18 was estimated at 12.45/20 by a survey by the CSA institute. 64% of 15-17 year-olds say they are interested in better understanding what an investment, insurance, credit, and a means of payment are.

With 17% of the population considering themselves to have a high level of financial literacy, France is slightly below the European average (18%) and far behind the Netherlands (28%) . At a global level, France is also average .

Scandinavians have the best financial literacy, followed by Anglo-Saxon countries. In Swedish and Norwegian schools, finance is integrated into math and social studies classes, where students learn how to manage a budget, compare credits, and consume responsibly. Financial literacy is an integral part of national curricula.

Finally, young people who have received financial education are significantly less likely to accumulate consumer debt as they enter adulthood . In addition, financial education develops critical thinking: knowing how to compare loan offers, understand hidden fees, or measure the consequences of an investment.

A social demand in the face of inequalities

The school’s mission is to educate free and enlightened citizens by mobilizing all disciplines. It can thus enable students to understand the principles of taxation, the state budget, and social security systems . A basic economic culture helps ensure democratic participation in local and national budgetary decisions. In addition, the rise of fintechs, cryptocurrencies, and dematerialized payments calls for an update of academic skills .

Financial education can be a factor in combating inequality. Indeed, many irrationalities in savings behavior can be explained by a lack of financial education . For example, children from low-income backgrounds are most at risk of a lack of knowledge about financial tools.

Schools can play a compensatory role, and widespread financial education would help break this cycle of transmitting economic ignorance . 71% of people whose parents had financial difficulties during their adolescence report that they are still in financial difficulty as adults, compared to 51% of those whose parents were financially comfortable .

Although over-indebtedness affects fewer people today (42% decrease since 2014), the most vulnerable (women, single-parent families, and people on low incomes) are harder hit. Households with better economic skills are better able to absorb crisis shocks, as the Covid-19 pandemic has shown. Financial resilience (i.e., the ability to find, within one month, a sum of money corresponding to 5% of gross national income) is 79% of adults in high-income countries. Greater financial literacy improves this household resilience , measured with changes in liquidity before/after a macroeconomic shock.

Education difficult to implement?

Among OECD countries, France is often presented as lagging behind in integrating financial education into schools. This can be explained by already overcrowded curricula that leave no room for new subjects. Financial education is also often considered secondary to the fundamentals (mathematics, French, science), and some teachers fear a “financialization” of schools. However, some experts advocate for a dedicated subject, while others believe that financial education can be integrated into existing disciplines (mathematics, economics, EMC).

There is also the question of legitimate actors, in other words: who should teach financial education? Teachers, already in high demand, lack specific training and feel they have little legitimacy to address financial concepts. In addition, the intervention of private financial organizations raises suspicions of conflicts of interest .

Whatever the solution chosen, initial and ongoing training of teachers remains essential, as does the use of a variety of digital tools . Finally, programs delivered by independent, non-commercial players obtain better support from teachers and families.

Author Bio: Eric Le Fur is Professor at INSEEC Grande École