In today's world, financial literacy is widely regarded as a fundamental skill for daily life. Numerous countries, including Hungary, have devised strategies for a comprehensive education in basic finance. Concurrently, several independent institutions, professional and civil initiatives have been established and have evolved into prominent and influential organizations in the field. For instance, the Pénz7 event on finance and entrepreneurship, which commenced this week, has been met with great success.

However, in the years leading up to the turn of the 20th century, two-thirds of the Hungarian population had limited banking experience, and while significant progress has been made ever since, the average person's understanding of financial matters is still a concern. A comprehensive understanding of finance requires the same level of theoretical and practical training as other subject areas.

Foreign currency loans bankrupted families

Many of you may recall the Russian crisis of 1998, which had a significant impact on the Budapest Stock Exchange. Previously, the Hungarian capital markets had been significantly overvalued, which had led to many investors experiencing financial losses. During this period, pyramid schemes and fraudulent investments offering high returns were introduced, resulting in numerous investors being deceived. Even during the international financial crisis of 2008, many Hungarian investors did not approach their investments with the necessary caution. There has been an increasing trend of individuals purchasing high-risk foreign currency loans, despite the potential exchange rate fluctuations, which have resulted in significant financial losses for many households.

Given the rapid growth of cashless payments and digitalisation, would foreign currency loan borrowers today be more cautious? Several financial, educational and civil society organisations have committed to enhancing financial literacy in Hungary. The Money Museum and Visitors Centre is one such organisation, and it will celebrate its third anniversary on 15 March 2025. The Money Museum's objective is to promote financial awareness and knowledge, irrespective of age, through the utilisation of digital tools and methods.

It's never too early to start
From a very early age, today's youth must make important financial decisions as they use a variety of digital products and services. Unfortunately, this can make them potential victims of cybercrime. This is a situation that will only become more challenging as they get older, as they will face even more complex financial situations, products and risks.

It is an acknowledged fact that financial literacy is now widely regarded as a fundamental, daily skill in many countries. The trend is almost universal, with school education and family initiation proving almost equally decisive in this process.

A growing number of governments have initiated the integration of financial education into the school curriculum, along with the support of finance-related initiatives within after-school activities. Financial education in schools can be categorised into two distinct practices. In some regions, financial education is incorporated into mandatory subjects such as mathematics, social studies, geography, or specific business and management courses. In other regions, a greater emphasis is placed on specialisation, with fundamental financial education taught as a standalone subject.

Children's education is a global priority

The importance of introducing financial literacy amongst children from an early age is well-acknowledged, and numerous countries have incorporated financial education into their school curriculums. In the United States and Canada, it is a requisite element of the school curriculum for students from the age of 11 to 13.

Since the 2010s, financial education has been mandatory in almost all European countries.

In the Middle East and Saudi Arabia, financial education is compulsory in the 10th grade of secondary school. Kids can discover how money works as early as kindergarten, and in primary school, financial literacy is part of other subjects, especially maths, life skills and digital skills.

The government's strategy for financial education in Hungary

In Hungary, the government's decision in 2017 to adopt a strategy to enhance the financial education of the population was a major step in the progress of financial literacy. In that same year, a financial schooling textbook, which has received accreditation, was published for use by high school students, and later by students in grades 7-8.

In Hungary, the National Education Scheme (Nat) and its mandatory and optional subject framework form the basis for the development of financial education in schools. The development of financial knowledge and skills in primary and secondary schools is mainly integrated into subjects such as mathematics, environmental studies, geography, technology and planning, and civics.

Every school age group is important

Primary and secondary schools have the option of integrating financial education as a standalone subject (financial and economic culture) in grades 7-8 and 9-10, as part of an elective curriculum. Textbooks accredited by the Money Compass Foundation are available free of charge to schools. In the field of vocational training, financial and entrepreneurial education is a mandatory subject in technical institutes for the 10th grade.

PÉNZ7 (European Money Week) is an optional programme offered in grades 3-12, integral to the school year's curriculum. This year (2025), the event took place between the 3rd and 7th of March. A wide range of institutions and schools are also organising competitions, contests and quizzes to promote financial literacy, which are gaining increasing popularity year on year. These include national financial quizzes such as K&H's Ready, Set, Money, PénzFutam (Money Run), the BSE Stocks Run, MBH Bank's Big Student Banker Test for students, and the Money Museum's Bank Code competition, which plays an important role in financial education.

Hungarian students achieve outstanding results on the international stage

Since 2010, countries worldwide have been measuring the financial knowledge and attitude of young people. In 2022, the Programme for International Student Assessment (PISA) conducted its fourth survey of the financial literacy of 15-year-old students. Hungary participated in the survey for the first time.

The survey assesses the extent to which students in the 20 participating countries have the skills they need to make successful financial decisions, both in and out of school.

The average score of 492 points for Hungarian students is comparable to the average of the 14 OECD countries, yet 17 points higher than the overall average. The results indicate that 81.7 percent of Hungarian students possess the minimum or higher level of financial literacy skills deemed necessary by society.

Children who are more independent are better at making decisions.

Research revealed that Hungarian students were more likely than the average students in the other participating countries to have been exposed to some financial concepts in class. For example, 90% of students learned about bank cards, the concept of entrepreneurship and wages. Furthermore, two-thirds of students mentioned that they had learned about the role of money and other topics essential for conscious consumer behaviour in school.

Research has shown that young people who are granted greater autonomy in financial matters by their parents tend to perform better on financial literacy tests. This marked difference was particularly evident among Hungarian students, with a notable 46-point disparity in their results.

The OECD recommendations advocate lifelong learning, starting from as early an age as possible, and favouring a long-term, well-constructed approach over ad hoc solutions.