Improving the financial literacy of society will limit risky financial behavior and the dependence of some people on the social system, while at the same time working to overcome disinformation related to the eurozone, financial and economic issues.
This became clear during a discussion on the topic of “Financial literacy as a factor for investments, incomes and the eurozone“, organized by the Economic and Social Council of the Republic of Bulgaria (ESS), in which the members of the Council - employers, trade unions and civil organizations and key institutions and organizations involved in the topic - participated. The discussion is part of the Communication Campaign for the introduction of the euro in the Republic of Bulgaria and was attended by Prime Minister Rosen Zhelyazkov, Bulgarian European Commissioner Ekaterina Zaharieva, Minister of Education and Science Krasimir Valchev, Head of the EC Representation in Bulgaria Yordanka Chobanova, representatives of the Ministry of Finance, BNB, NRA, NSI, FSC, CPC, etc.
In recent years, the topic of the eurozone has been part of the essential political conversation, but it is not a topic for debate. “There is no point in introducing a debate that manipulates people, creates fears and manages fears in people,“ said Prime Minister Rosen Zhelyazkov, who opened the discussion. He stated that attempts at speculation will be clearly addressed with the entire intolerance of the state towards such phenomena.
„People should know that Bulgaria's membership in the eurozone is proof to the world that Bulgaria is a strong economy and has a place at the table of the strong“, said Bulgarian European Commissioner Ekaterina Zaharieva in a video address.
It is necessary to ensure that before the country joins the eurozone, there is sufficient objective and verified information on all issues concerning citizens and that it reaches them, ESC points out.
„Bulgaria's entry into the eurozone will definitely lead to higher incomes in our country and to better opportunities for the Bulgarian economy. In almost all countries in the period before accession, there were questions and doubts - what will happen to incomes, prices, inflation. The data to date show that in the years since accession, support for the eurozone has been growing and reaching 80%,“ said ESC Chair Zornitsa Rusinova. Good financial literacy will not allow society to be misled by false claims that membership in the eurozone leads to economic collapse and impoverishment, she added.
According to a Eurobarometer survey, 55% of citizens report that they are often exposed to disinformation, which is the highest share in the EU. More and more young people are falling into a debt spiral, lacking basic knowledge in the field of finance and law, it became clear during the discussion. The level of financial literacy in Bulgaria is lower than in other EU countries, which is why targeted and effective policies and programs are needed to increase it. The data are from the National Strategy for Financial Literacy of the Republic of Bulgaria, which includes measures aimed at defining competencies in the field of financial literacy in terms of income and savings, investments, long-term planning, retirement and pensions, consumer protection in the financial field, risks and insurance.
According to a financial literacy study by the “Trend“ agency from December 2024, presented at the forum, 73% of those surveyed do not save. Only 8% of those participating in the study make investments, and the share of those who firmly answer “I do not invest“ remains high - 90%.
84% rely on income only from salary, the results also show.
Another study - “Financial literacy of the population in Southeast Europe“ , Bulgarians do relatively well with short-term management and control of their finances. However, they are less likely than other countries in the region to plan for the long term – they mainly rely on the state to finance their retirement period (78.6%). According to the 2020 OECD study, a significant proportion of Bulgarians have saved (77.6% compared to an average of 67% for the region), with savings held mainly in cash (62%) or in bank deposits.
Low financial literacy is associated with ineffective or absent inclusion in the financial system with all the resulting negative consequences, a higher degree of risky financial behavior, with greater dependence on the social system, points out the moderator of the discussion, Maria Mincheva – member of the ESC from the employers' group. One of the most significant results of this is the lower quality of life of these groups. Financial culture not only improves the individual situation, but also contributes to a more stable economy and society, especially with technological progress and the development of financial technologies. It is important for Bulgarian citizens to be informed about the new tools and platforms that can facilitate the management of personal finances, commented the participants in the discussion.
Despite the existence of a national strategy and numerous private initiatives, no significant change has yet been observed among the population, especially among vulnerable groups. All initiatives, discussions and consultations undertaken to increase the financial culture of society will provide a real impetus for the development of the Bulgarian economy, for accelerating the necessary reforms, for improving people's incomes and for understanding financial literacy as an advantage for well-being.