Financial Literacy in Cyprus: Results from the first comprehensive Central Bank of Cyprus survey

The paper evaluates financial literacy levels in Cyprus, drawing on data from the 2018 Financial Literacy Sampling Survey conducted by the Central Bank of Cyprus. The survey included 1,000 participants aged 18 to 79. The questionnaire covered two sections: sociodemographic information and general financial behaviour, and financial knowledge, attitude, and behaviour, based on the OECD/INFE Toolkit. A key finding of the survey was that the average financial knowledge score in Cyprus was 4.78 out of 7, falling short of the OECD's benchmark for someone to be considered as financially literate, which is 5 out of 7. The survey results highlighted specific groups in greater need of financial education, including young people, the unemployed, women, low-income individuals, those with lower educational attainment, and citizens who did not take economics courses during secondary education. Additionally, lower financial knowledge was associated with greater financial vulnerability. Notably, significant financial knowledge gaps were found in areas such as interest compounding and risk diversification. These findings were instrumental in developing Cyprus's first National Strategy to promote financial literacy and education, endorsed by the Council of Ministers in June 2022. A follow-up survey is currently underway to reassess financial literacy in Cyprus.