If I were to stop people on the street and ask them what financial education is, I think I would get a lot of different answers depending on who I spoke to: how to save money, how to keep a household budget with income and expenditure, how to use a credit card wisely and correctly, how to invest their savings, etc.
Financial education is the ability to understand and apply different financial skills effectively, including personal financial management, budgeting, and investing.
Today, in the internet age, we can find everything online, both valid information and other content which is less so. The possibility of growing and gathering information is within everyone's reach. However, there is still a lack of financial education.
I am Italian; in Italy only 37% of adults have at least a minimal knowledge of finance, according to the latest survey conducted by Standard and Poor's and the World Bank. The financial literacy rate is 68% in Canada, 67% in the UK, 66% in Germany, 64% in Australia, 57% in the US, 52% in France and 49% in Spain. The best in the world are the Scandinavian countries, which together boast 71% of the population knowing finance at a basic level.
The analysis covered concepts such as the ability to calculate, risk diversification, inflation and interest. It was therefore not a question of high finance concepts, but of competence in the most basic economic concepts that are nevertheless important in everyday life. Basic concepts that should be part of the common vocabulary of the average person. And yet, this is not the case.
The reality is that everyone should save some of their income and invest that money to ensure a brighter future. Financial markets are a great opportunity to increase personal wealth, but only a few know how to exploit it. Having financial knowledge translates into knowing how to plan one's money, which means that a person can face moments of crisis with less anxiety.
I was struck by a pre-Covid survey showing that 36.6% of people do not have enough money to cope with more than two months without income, and two out of ten households could not cope going one month without a steady income. Young people and people with lower education are among the most penalised.
Today, three out of ten households would find it difficult to cope with an unexpected expense and 35% of people feel anxious and uneasy about their financial situation. This happens because there is a lack of savings and investment culture.
Financial skills have a profound impact on people's quality of life and are crucial for coping with periods of crisis and uncertainty such as the current one linked to the COVID-19 emergency.
I want to share two real-life examples that show how even small changes, guided by knowledge, can transform a person’s financial life.
Marco, a 35-year-old employee from Milan, was constantly living with end-of-month anxiety, a situation common to many. Earning 1,600 euros a month, he barely managed to cover his essential expenses. After I suggested he read my free financial guide, he began tracking every expense and realised he was spending about 300 euros per month on impulsive purchases.
By applying a few tips, such as creating a budget and setting aside 10% of his salary into an emergency fund, he managed to save about 3,000 euros in just 18 months. So, when his car suddenly broke down, he did not need to borrow money or postpone the repair: he paid it calmly, without stress.
I still have the email where he wrote: "I have not slept this peacefully in years. Only now do I understand what it means to have control over my money."
The other story concerns Giulia, 45, a secondary school teacher from Naples. Giulia had 12,000 euros sitting idle in her bank account for years. She contacted me because she did not know how to invest: she was afraid of making mistakes and losing her savings. I also suggested she read my free financial guide, so she could clarify her ideas and learn the basics.
After understanding how inflation really works and what it means to leave money "parked," she decided to act. She built a prudent, diversified ETF portfolio. In five years, her capital grew to 17,500 euros, even through volatile market periods.
What is great about this story is that it changed her so much that she now talks to her students about financial planning.
I wanted to share these examples because they reflect the situation of so many people. It does not take much, not to become rich, but to remove stress and live with greater peace of mind.
That’s why my advice is to look at the world of investing differently. Contrary to what many believe, it’s a valuable tool that can truly improve your financial life.
I am a trader and financial analyst; I have been investing in the financial markets for over 30 years, with a particular focus on currencies and commodities. Over the years, I have received many emails from people asking for help in improving their financial lives. I have always been happy to share my knowledge, experience, and skills. That is why I created a simple, completely free financial guide that can help anyone better manage their money and understand how to grow financially through investing.
I could have expanded on these topics and turned them into a new book, and I would have earned from it. But that would have betrayed the purpose of this guide: making the basics of financial education accessible to everyone, and helping as many people as possible to improve their lives. As you have seen with Marco and Giulia, and as you will read, with a bit of effort, discipline, and minimal risk (sometimes practically none), it is possible to save and watch your savings grow over time. You can free yourself from debt and achieve a more serene future.
I am available to answer any questions you may have. Why? Because I love connecting with others and helping them reach their goals. Your money matters to me, so no tricks, no hidden fees, no scams. I am not trying to win your trust to take your money, I do not need to. And besides, not all rewards are measured by the balance in your bank account. I help because I want to, and because I believe everyone has the right to control their money and investments, including you.
So, click the banner below and start reading how to improve your financial life.
