In a world marked by financial instability, climate urgency, geopolitical turbulence, and growing socioeconomic inequality, the importance of financial literacy is more critical than ever. Global trends—ranging from digital currencies to ESG investing, inflation shocks, and mounting public debt—require citizens, especially the younger generations, to possess strong economic understanding and decision-making skills.

According to the OECD’s 2023 Global Financial Literacy Report, less than 30% of students in developed countries demonstrate a solid understanding of basic financial concepts such as interest, inflation, and budgeting. This data highlights a systemic gap in education, which risks amplifying inequalities and preventing young people from becoming active, empowered economic actors.

Financial education is not just about managing money—it’s about equipping individuals with tools to interpret the world, make responsible choices, and understand the consequences of economic actions on both personal and planetary scales.

The first steps in financial education: a foundation for life

Financial education begins with a few fundamental concepts that must be taught early and progressively deepened over time:

  1. Budgeting & income awareness

    • Children and teenagers must first understand the difference between needs and wants, and how income can be allocated. Teaching them how to track spending, create simple budgets, and save toward a goal is essential.

    • Tools: Budgeting apps (e.g., Greenlight, GoHenry), spending diaries, visual trackers.

  2. The value of saving and delayed gratification

    • Behavioral economics shows that learning to delay gratification improves financial outcomes. This lesson, when introduced early, correlates with better academic, professional, and financial success.

    • Study: The Stanford Marshmallow Experiment (Mischel, 1972) connected delayed gratification to long-term success.

  3. Understanding interest and debt

    • Few young people understand compound interest—either as a saving tool or as a debt trap. Explaining how borrowing works, what interest means, and the risks of credit cards and loans is vital.

    • OECD PISA data show that students in the top quartile of financial literacy are 3x less likely to incur unplanned debt in adulthood.

  4. Investing, risk, and time horizon

    • Once basic financial literacy is acquired, introducing concepts like diversification, risk tolerance, and long-term investing lays the groundwork for future wealth creation.

    • Example: A $1,000 investment in the S&P 500 at age 15 would grow to over $16,000 by age 50 with an average return of 7%—highlighting the power of compound growth.

  5. Economic systems and ethical responsibility

    • Today’s education must also explain how the financial system works, its relationship with politics and society, and the importance of aligning financial choices with sustainable and ethical values.

Why studying economics is a strategic choice today

Studying economics offers more than career opportunities. It offers a lens through which we can interpret:

  • Inflation & Monetary Policy: Understanding how central banks work, what inflation means, and how monetary policy affects everyday life (e.g., mortgage rates, salaries).

  • Globalization & Supply Chains: The war in Ukraine, COVID-19, and tensions in Taiwan have shown how fragile global supply chains are and how they affect everything from gas prices to food availability.

  • Income Inequality & Social Justice: Thomas Piketty’s research highlights how economic structures can entrench inequality. Economic education can foster critical thinking about fairness, redistribution, and tax systems.

  • Digital Finance & Cryptoassets: With over $2 trillion in cryptoassets globally (2024 data), a new layer of complexity has entered finance. Education must evolve to cover these emerging trends, including decentralized finance (DeFi), blockchain, and digital central bank currencies (CBDCs).

  • Youth Employment & Financial Independence: According to the World Bank, nearly 60% of youth in low- and middle-income countries are underemployed or unemployed. Understanding macroeconomic dynamics helps explain such phenomena and guide students in navigating the labor market more effectively.

The rise of sustainable finance: a paradigm shift

One of the most profound shifts in international finance is the rise of sustainable finance and ESG (Environmental, Social, Governance) criteria. From regulatory mandates to investor preferences, finance is evolving:

  • The EU Green Deal and SFDR regulations now require transparency on sustainability in financial products.

  • In 2023, global ESG assets surpassed $41 trillion (Bloomberg Intelligence), and are expected to reach $50 trillion by 2025, accounting for one-third of global AUM (assets under management).

  • Sustainable bonds and green finance instruments have grown exponentially. Over $600 billion in green bonds were issued globally in 2023 alone.

  • Impact investing—investing to generate both financial return and social/environmental impact—is rising, especially among millennials and Gen Z, who prefer values-aligned portfolios.

This shift makes financial education not only a necessity for personal wellbeing, but also a tool for planetary resilience. Students must learn to critically assess claims of sustainability,, interpret ESG scores, and understand how capital flows influence climate and equity outcomes.

Investing in financial education is investing in the future

Financial literacy is not a luxury, it is a human right in the 21st century. 

In an era defined by disruption, inflation, climate crisis, and digital transformation, knowing how money works is as essential as reading or writing.

Educating the next generation about finance means preparing them to take control of their lives, navigate uncertainty, and become architects of a more equitable and sustainable future.

As economists often say: “Every choice has a cost.” The cost of not investing in financial education today is too high for individuals, families, and societies alike.

The European School of Economics: A catalyst for financial awareness and ethical leadership

In line with the pressing need to rethink the role of education in a rapidly transforming financial landscape, the European School of Economics (ESE) has positioned itself at the forefront of cultivating financial consciousness, entrepreneurial mindset, and ethical responsibility among students. Through its unique model that blends academic rigor with practical exposure, ESE embeds financial education within a broader vision of personal and societal transformation.

ESE’s programs, from undergraduate to executive level, emphasize financial literacy as a core life skill, not merely a technical competence. The curriculum is designed to bridge the gap between theory and real-world financial dynamics, with a strong focus on sustainable finance, impact investing, and ethical decision-making. Case studies, simulations, and business games are integrated into courses to foster experiential learning and strategic thinking.

Moreover, ESE promotes cross-generational and cross-sector dialogue through dedicated initiatives—such as the Department of Innovation & Sustainability, and the One Health ESG Management Academy—which equip young individuals and professionals with the tools to navigate finance in the age of climate change, digital disruption, and social inequality.

By organizing impact-driven events, partnerships with sustainable companies, and mentoring programs with financial leaders, ESE acts as a platform for systemic change. It fosters a new generation of leaders who understand that value creation must include not only economic growth, but also environmental integrity and social justice.

In doing so, the European School of Economics is not simply teaching finance—it is reshaping the cultural narrative of finance, turning it into a tool for empowerment, innovation, and planetary responsibility.

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