Ireland's first National Financial Literacy Strategy

Ireland's first National Financial Literacy Strategy 2025-2029, was launched last week (February 20th). This comprehensive plan is aimed at enhancing financial literacy across the nation. This initiative underscores the government's commitment to empowering individuals with the knowledge and skills necessary to make informed financial decisions throughout their lives.

 

The Importance of Financial Literacy

Financial literacy is recognised as a cornerstone of personal financial well-being. It encompasses the ability to understand and effectively manage various financial aspects, from daily budgeting to long-term investment planning. Financial literacy is a lifelong journey. As well as managing money day to day, paycheck to paycheck, it is integral to navigating significant financial milestones such as education expenses, mortgage applications, tax obligations, and retirement planning.

The strategy highlights the role of financial literacy in bolstering financial consumer protection. By equipping consumers with the tools to make informed choices, it aims to enhance financial resilience and overall well-being, especially in the face of global uncertainties and rising living costs.

Development of the Strategy

The formulation of the National Financial Literacy Strategy was a collaborative effort involving multiple stakeholders. It builds upon the evidence and recommendations presented in the Mapping Report published in April 2024. This foundational report provided a comprehensive overview of the existing financial education landscape in Ireland and identified key areas for improvement.

The strategy aligns with the Organisation for Economic Co-operation and Development (OECD) recommendation that governments establish and implement national strategies for financial literacy. By adopting a coordinated and sustained approach, Ireland aims to elevate financial literacy levels nationwide.

Key Objectives and Initiatives

Central to the strategy is the vision of fostering a financially literate population capable of making informed decisions at every stage of life. To achieve this, the strategy outlines several key objectives:

• Enhancing Financial Education: Integrating financial education into various stages of the formal education system to ensure individuals acquire essential financial skills early on.

• Promoting Public Awareness: Launching campaigns to raise awareness about the importance of financial literacy and the resources available to support financial education.

• Strengthening Consumer Protection: Implementing measures to safeguard consumers from financial fraud and misinformation, thereby building trust in financial systems.

• Encouraging Savings and Investments: Introducing initiatives like the auto-enrolment savings system, "My Future Fund," to encourage long-term financial planning and retirement savings.

Annual action plans will be developed to monitor progress and adapt to emerging challenges. This iterative approach allows for continuous improvement and responsiveness to the evolving financial landscape. The National Financial Literacy Strategy 2025-2029 marks a significant milestone in Ireland's commitment to enhancing financial literacy. By empowering individuals with the necessary knowledge and skills, the strategy aims to foster a more financially resilient and informed society.