Only 20% of young people can calculate interest; education is essential

Experts warn that a considerable number of young people in Croatia, despite increasing financial literacy, still struggle with fundamental financial concepts. While nearly 60% of young adults in Croatia manage a monthly budget, and overall financial literacy among those aged 20-35 has risen to 61%, a deeper understanding of complex financial products remains elusive.

Research indicates that only 20% of high school students can correctly calculate real interest rates, and a mere 26% know that a third pension pillar is voluntary. Although over half of students save money, more than a third admit to spending more than they earn. The growing interest in cryptocurrencies also presents new challenges for responsible money management.

To combat these issues, financial literacy is increasingly being integrated into Croatian school curricula. The Economic and Technical School in Slavonski Brod, for example, has introduced a dedicated subject on financial literacy. Student Mia Matasović noted that her class's research revealed a widespread lack of financial knowledge, emphasizing the need for more attention to the topic.

Valentina Bodrožić-Selak, a teacher at the school, highlighted that while economics students have some exposure through banking and marketing courses, the financial landscape is constantly evolving. She stressed that financial literacy is a vital life skill for all young people, regardless of their field of study. Alan Božić from the Croatian Chamber of Economy echoed these concerns, pointing out that while young people possess some knowledge, the primary issue lies in behavior, specifically discipline and responsible money management. He cautioned about the risks associated with investing in less-understood areas like cryptocurrencies.