Brussels, 17 March 2025
“Check against delivery”
Good afternoon, everyone.
I am delighted to be able to take part in Global Money Week. The Global Money Week is a fantastic initiative, and I am thrilled to see such leadership from the OECD and the Brazil G20 Presidency.
This year’s theme of “think before you follow, wise money tomorrow” recognises that the way we learn, and who we turn to for advice, has changed.
We are living in a world where social media can have a dramatic impact on society and the financial market. It also impacts the decisions we make. We feel these impacts more and more often, and strongly. Certain social media personalities can have a powerful effect on people’s financial decisions, and indeed on the economy.
Recognising such impacts puts financial literacy – and digital financial literacy in particular – in the spotlight and highlights its crucial importance. And this is what I would like to speak to you about today.
Throughout the last decade, we have seen a seismic shift in how we interact with every day financial services. Think about it: we now use banking apps to manage our savings and investments, we can pay for our shopping by tapping our phones, and we can split a bill with friends instantly with a simple QR code.
With artificial intelligence being deployed into all corners of the economy, there is even more potential for change in the future. The digital finance tools available can make us all more financial savvy and can help us to take control of our finances.
Being in control of your finances is about empowerment, and about making life easier. But it is also about realising that all decisions have consequences.
Today social media serves as a key educational platform for many, especially the younger generation. However, with the vast sea of information available, young people often find themselves navigating a tidal wave of content. This can be empowering, but it can also be overwhelming.
Finfluencers are popping up everywhere across social media platforms They’re grabbing the attention of young people by making finance relatable and easy to understand through engaging content.
A lot of these finfluencers really care about personal finance and want to help people take charge of their money. However, having such influence can also raise some red flags. We have seen that not all finfluencers operate with the best intentions or necessary expertise.
Often, advice from finfluencers:
- may be based on questionable data,
- can lack regulatory oversight, and
- they may not have the relevant qualifications.
What’s worse, is that some of the advice given out by finfluencers is actually promotional marketing in disguise. Meaning that these people have been paid or otherwise incentivised to promote a certain financial product.
It’s easy to get caught up in the hype, and there is real potential for abuse.
On top of it there is still the peer pressure to be part of something and the “fear of missing out”.
This is why our own financial literacy is so important. Unfortunately, financial literacy in the EU isn’t where it should be. According to a Eurobarometer survey from July 2023, only 18 percent of EU citizens have a high level of financial literacy. And that is not good enough.
We need to be able to critically evaluate what we’re reading, watching, and sharing. We need to be able to spot the biases, the scams and the misinformation. It’s crucial to remember that each person’s financial situation is unique.
So, when we see advice online, we have to be able to ask the important questions:
- Does this guidance truly serve my best interests?
- if this is such a good investment opportunity, why is it being disseminated and shared with so many people?
To confidently answer that, we must first invest in our own financial education.
In this digital age, knowledge is indeed power. While there is an abundance of information at our fingertips, choosing who to trust is important. We should be curious but have a critical eye. From my side, as European Commissioner for financial services, I will be putting forward a strategy for financial literacy in the coming months.
This, together with the upcoming Savings and Investments Union strategy to be adopted on 19 March, is a critical piece of the puzzle to making Europe’s economy stronger and building wealth among Europeans.
In closing, first, make sure you have all the elements and information you need, that the sources are trustworthy, that you know professionals or institutions with whom you can clarify doubts.
The importance of financial literacy and the need for everyone to understand the tools and systems that shape our economy cannot be overstated.
As we move forward, we must ensure that young people and individuals from all walks of life are empowered with the knowledge and skills necessary to navigate the financial world effectively.
Only with this understanding can we build a sustainable and inclusive financial future for all.
Remember, money moves best when you know how to move it.
I wish you all a great day of discussions.
Thank you.
Source – EU Commission