Financial literacy, or financial wisdom, is a set of skills, knowledge, attitudes and behaviours that are necessary to make smart financial decisions and ensure the economic well-being of the family. Financial literacy is, for example, the ability to draw up a family budget, knowing the basics of investing, and having a sustainable and responsible attitude toward money.
The Ministry of Finance coordinates the promotion of (state) financial wisdom:
- provides a platform for cooperation between private, public and third-sector partners to share good practices and address challenges;
- directs/coordinates and mediates cooperation for organising events, surveys and activities;
- participates, with the financial perspective, in the development of legislation while contributing to directing and supporting financial decisions related to the state, business and human life cycle based on financial wisdom;
- commissions both national and international surveys to better understand the domain of financial wisdom and to guide further activities.
Promoting financial wisdom, and cooperating
An important part of the work to promote financial wisdom is to raise people’s awareness of how to organize their finances, which would help preserve and improve the economic well-being of the population.
The Ministry of Finance supports a number of initiatives that help bring financial wisdom to different target groups, such as the economic and business booklet issued by Realister for basic school students, the Investment Festival for people with an interest in business and investing, and the financial wisdom family day organised by the Bank of Estonia and the Financial Supervision and Resolution Authority for children and their parents.
With support from partners, in 2018, books on financial wisdom were made available to all people interested, by distributing the books to libraries in all counties. The in-service training of teachers of different subject areas has been supported in every way, as well as physical and virtual visits for upper secondary school students at the initiative of the Banking Association. In cooperation with the programme “Success and Action” established by the Ministry of Education and Research, entrepreneurship training has already reached more than half of Estonian schools, with financial wisdom as part of it.
National and international surveys
Results of the Estonian 2023 survey of adult financial literacy based on OECD methodology, in Estonian.Earlier, similar surveys have been carried out in Estonia in 2010, 2012, 2015 and 2019.
The level of financial wisdom among Estonian students has been measured by the international PISA financial literacy assessment, and the latest results ranked Estonian students aged 15 as number one in the world.Estonian students have taken the test in 2012 and 2018.
The detailed report on PISA financial literacy can be read in Estonian here:
In cooperation with the Ministry of Education and Research, teaching financial literacy in general education and vocational schools was surveyed for the first time in autumn 2020. The survey aimed to identify the extent and methods of teaching financial literacy in Estonian general education and vocational schools, the problems associated with the teaching, and the educational materials most often used in schools. Teachers, students, parents, school leaders and experts were interviewed.
The results of the survey will be used as input for shaping the financial education trends of the following years, and the new financial literacy programme. Survey “Analysis of the possibilities of developing financial literacyin Estoniangeneral education and vocational schools” can be read in Estonian here:
Strategic programme
The programme for promoting financial literacy among Estonian people provides a common framework and objective for the promotion of all financial literacy related activities in Estonia.
Money-wise Estonia's strategy is aimed at a better level of people's well-being
One of the goals of the strategy is to make learning opportunities available to everyone: learning is systematic from kindergarten to university, there are additional opportunities for those interested and tutors, and the necessary teaching materials are available. On the other hand, the goal is for people to use the knowledge of money wisdom on a daily basis, for example, to plan their expenses / income in the long and short term and to consider financial opportunities and needs. In addition, they have knowledge of investing and entrepreneurship and are able to seek help in managing financial matters if necessary. A supportive environment means that financial service providers are responsible and based on the well-being of their customers, the financial environment favors a wide range of investment products with reasonable costs and ease of use, and the regulatory environment supports and protects consumers where necessary. Financial decision-making tools are available and people do not engage in financial fraud. The strategy can be read in Estonian here:
Promoting the wisdom of money aims to increase people's satisfaction and quality of life so that they can feel more financially secure in their day-to-day decisions and can increase their well-being. To this end, the Ministry of Finance contributes in the role of a central coordinator and consolidator of information, mediating co-operation contacts and monitoring the more general development of the field through periodic summaries.
Our good partners contributed to the completion of the money wisdom strategy through input, feedback, brainstorming and the implementation of agreed future activities. Representatives of several fields participated in the Strategy Day in August 2020 to gather ideas for the vision and more specific activities and indicators, a summary of which can be viewed on the blog of the Ministry of Finance.
Summary of the strategy day on the Ministry of Finance’s blog: https://blogi.fin.ee/2020/08/strateegiapaeval-loodi-visioone-tuleviku-rahatargast-eestist/ (in Estonian)
The Ministry of Finance supports the promotion of financial literacy in the development of the necessary legislation and coordinates the activities of the programme for promoting financial literacy among Estonian people for the period 2013–2020:
The first strategic programme was made for the period 2013–2020. Its three main objectives were the following:
- People are aware of the need for financial planning and their attitudes support smart financial decision-making.
- People understand financial services and can use them to organise their finances at every stage of their lives.
- Financial services are provided responsibly.
Survey “Analysis of the possibilities of developing financial literacy in Estonian general education and vocational schools” can be found here.
Educational resources
Here, you can find exciting and necessary information on financial wisdom:
Financial wisdom videos “5 steps to well-organised financial matters”, in Estonian.The same videos are also available in Russian.
The five financial wisdom teaching cartoons “5 steps to well-organised financial matters” by the Ministry of Finance provide practical advice on how a private person can effectively plan and organise (family) finances, from writing down the income and expenses to the introduction of basic investment principles. The cartoons are “Write down your income and expenses!”, “Analyse and do better!”, “Creating an emergency fund”, “The long-term planning process” and “Investing”.
Video on financial wisdom, “Dream yourself happy”, in Estonian.
E-visit lessons on financial wisdom, in Estonian.
Teaching financial literacy in Estonia (in Estonian).
Contact information:
Marge Aasalaid, coordinator
marge.aasalaid@fin.ee; +372 53 883 048
Institutions and organisations involved in financial wisdom
- https://www.minuraha.ee/et
- https://www.pensionikeskus.ee/en/
- https://pension.sotsiaalkindlustusamet.ee/en
- Ministry of Finance’s Facebook page for sharing useful information and materials https://www.facebook.com/Rahatark-Eesti-101081258622402 (in Estonian)
- Financial wisdom e-course for upper secondary school https://finantskirjaoskus.ee/ (in Estonian)
- #Kogumispäevik savings diary group in social media with FB logo https://www.facebook.com/groups/1310707785627509/ (in Estonian)
- Swedbank’s blog Kukkur: https://kukkur.swedbank.ee/ (in Estonian)
- LHV Investment School https://fp.lhv.ee/academy?locale=en
- SEB money wisdom course: https://e-oppekeskus.ee/videokursused/rahatarkuse-kursus/ (in Estonian)
- For teachers: https://www.minuraha.ee/index.php/et/kasulikud-abivahendid/opetajale (in Estonian)
- Blogs / podcasts / recordings: https://rahajutud.ee/ (in Estonian)
- Estonian Creditors Association: https://evnl.ee/ (in Estonian)
- Financial literacy working group of the Banking Association: https://pangaliit.ee/finantskirjaoskus (in Estonian)
Last updated: 03.06.2024
