Financial literacy expert: why money still runs out despite growing awareness

Financial literacy in Latvia has seen notable progress in recent years, with new educational platforms and a growing pool of accessible experts explaining money matters in plain language. Yet financial literacy expert Jeļena Titko points out that, according to recent research, outcomes in some areas have actually gotten worse.

She references a study coordinated by the Bank of Latvia in which participants were asked to calculate how much interest they would earn on 100 euros over a year. A surprisingly large share of respondents, she says, failed this basic arithmetic task.

Scammers evolve, old mistakes persist

One growing challenge is the increasing sophistication of scammers, now aided by artificial intelligence. Yet Titko notes that people continue to make fundamental errors — such as sharing their bank account details with others — mistakes that were already known to be risky long before digital technology existed.

Young people at particular risk

The Bank of Latvia's research found that some of the weakest results came from the 18-19 age group, although financial mistakes occur across all age brackets. Titko explains that this is precisely the age when people face their first independent financial decisions — moving out, starting studies, and entering the workforce. She argues this is exactly when practical support is most needed, covering basics like wages, fraud prevention, investing, and retirement savings.

To address the gap, Titko has submitted an initiative through the ManaBalss.lv platform proposing that financial literacy become a mandatory course at all Latvian universities. The goal would be to equip young people with practical skills in managing personal finances, helping secure their long-term financial well-being.