Nicosia, Cyprus. A European Commission assessment has placed Cyprus near the bottom of the EU for basic financial literacy, as consumers continue spending despite modest salaries and rising prices.
Spending patterns despite limited budgets
The article describes a pattern in Cyprus in which salaries are modest and prices continue to rise, yet spending does not slow. It cites purchases such as frequent phone upgrades, home renovations, large weddings and summer holidays to Greece as examples of spending that persists even when budgets appear strained.
European Commission findings on financial literacy
The article cites a 2023 European Commission measurement of basic money skills across the EU, including questions on how interest works, how inflation affects savings and the relationship between risk and return. Across the EU, 26 per cent of people demonstrated a high level of financial knowledge, while in Cyprus the figure was 19 per cent.
It also states that 30 per cent of people in Cyprus fell into the lowest category of financial knowledge, compared with an EU average of around 24 per cent. The article says Cyprus ranked third from the bottom, above Portugal and Romania, while Denmark ranked highest.
Reference to younger people managing money
The article also refers to a generation of young people in Cyprus who are handling their money well, describing them as neither economists nor banks selling products.
How do you think financial literacy affects everyday spending decisions in Cyprus?
