In September, children return to school, and with them come discussions about which skills are most essential for today’s youth. Beyond foreign languages, mathematics, or computer science, financial literacy is increasingly mentioned. Although this topic is becoming as important as other core skills, in Lithuania it still receives too little attention.

Statistics reflect this clearly. Despite the growing public discussion about the importance of financial literacy, a 2023 Bank of Lithuania study revealed a paradox: Lithuanians’ financial knowledge has not improved but declined — from 62 points in 2015 to 56 today. The international average is 60 points, meaning Lithuania lags behind not only the leaders but also the global trend.

Even more worrying are the results among young people. The OECD PISA study shows that around 14% of 15-year-olds in Lithuania still fail to reach the basic level of financial literacy. In other words, they can recognize financial concepts but cannot apply them in real-life situations.

Experts warn that if these gaps are not addressed, many young people will enter adulthood without essential financial knowledge. So how can this situation be improved?

Learning too late

According to educational expert Jovita Ponomariovienė, the reasons why Lithuanians do not excel in financial literacy are not hard to find. While the topic has gained more attention in schools over the past decade, it still receives insufficient focus.

“This topic is included in the national curriculum, but it usually appears only as isolated inserts — during social studies, mathematics, or economics and entrepreneurship lessons. What’s missing is a consistent, universal approach focused on practical experiences and real-life examples. Children should see finance as part of real life — planning a class budget, calculating travel expenses, or discussing responsible consumption. Much also depends on teachers’ initiative, so it’s important that financial literacy is not treated as an optional add-on but as an integral part of education,” Ponomariovienė emphasizes.

She also notes that both at home and in schools, discussions about finances often begin too late. By the tenth grade, when students first encounter economics or entrepreneurship, many of their financial habits are already formed.

“Education must be gradual — starting from responsible consumption and saving in childhood, to budgeting during adolescence. Only then can we talk about investing. If a child cannot plan expenses, investment will seem like an unrealistic concept. Moreover, the content of financial education must be practically applicable — that is the key rule. If financial knowledge is not linked to real-life situations, it will seem too abstract to children,” she says.

Students take the initiative

Students themselves also notice the lack of financial education. Emilija Čapkauskaitė, a senior student at Vilnius Jesuit Gymnasium, says that many of her peers admit missing financial knowledge, so some decided to take action. “A few years ago, two 11th-grade students created a community, raised €120,000, and in February 2022 officially established the Vilnius Jesuit Gymnasium Fund. Today, its endowment amounts to nearly €400,000 — all of it invested, with the returns used to fund projects,” explains the fund’s director, Emilija.

Initially, the fund mainly organized educational activities, but now it provides scholarships, exchange programs, and joint projects with other schools. Each year, four students from Vilnius and Kaunas even travel to study at a prestigious school in Chicago. “This is not just financial support — it’s a real opportunity to learn responsibility, planning, leadership, and community spirit. We were the first school in Lithuania to establish such a fund, but now we see similar examples spreading to other schools. That’s encouraging, because financial literacy still receives too little attention in Lithuania — and such student initiatives prove that the future can start taking shape right from the classroom,” says Emilija.

She adds that the financial knowledge gained through the fund is also useful personally: “I recently turned 18, so I can now invest under my own name. Before that, I did it through my parents for several years. I often get questions about investing from students at other schools — which shows that young people want to learn, they want to take their first steps, but often lack the knowledge or someone nearby to ask,” she says.

Money at home - still a taboo?

Educational expert Jovita Ponomariovienė points out that children’s financial literacy can only be effectively developed when both schools and families work together. Yet here lies a paradox — many parents themselves grew up without financial education and therefore don’t know how to discuss money with their children. “This creates a vicious circle. If money is not discussed at home, it may seem like a forbidden or even shameful topic. I also notice that many parents make another mistake — they present money only as a reward for good behavior, rather than as a tool for responsible planning. Children see that money comes from an ATM, but they don’t know that behind it are work and responsibility. In such cases, they fail to develop basic habits, and later it becomes much harder to understand saving or investment logic,” Ponomariovienė says.

Miglė Grybinienė, Marketing Director at crowdfunding platform Profitus, adds that children’s financial habits are shaped not only by family but also by the broader environment. Advertising, social media, and peer influence create a culture of consumption that young people perceive as normal. “This environment encourages impulsive desires, and parents often give in to the pressure, rushing to satisfy them. Expensive purchases are not just gifts — they’re missed opportunities to teach that the most valuable decisions are long-term ones, like saving or investing. Children must understand that every choice is a compromise: if we choose something today, we’ll have to give up something tomorrow. If more parents followed this approach, I believe Lithuania’s financial literacy would gradually improve,” Grybinienė says.

Still, she emphasizes that the situation shouldn’t be painted too bleakly. Statistics from the Bank of Lithuania show that the number of investors in the country is growing, and young people are becoming much more interested in the topic. “We see more parents involving their children in family budgeting, investing, or other financial discussions. Currently, we have 75 underage investors — 28 girls and 47 boys. This ratio reflects the national investor proportion recorded by the Bank of Lithuania. Interestingly, among children under three years old, the imbalance is even clearer — thirteen accounts opened for boys and only two for girls. This suggests that parents are more actively concerned about boys’ financial future, even when investing in a baby’s name. Although there are still fewer women investors than men in Lithuania, the gender gap among children is even more pronounced — meaning inequality begins forming from the earliest years,” she explains.

Theory doesn't work - what to do?

So, what can be done to improve financial literacy faster in Lithuania? Experts agree: talking about money is not enough — children need hands-on experience, and that must start early, in a safe environment at home. “I would recommend a simple practice for parents — let children decide how to use 10–20% of their own money. Once a month, hold a ‘family finance hour’ where everyone reviews the budget, goals, or even investment portfolio. Even simple table discussions about what to buy now and what to postpone later teach children that finances are always about choices and consequences,” says Grybinienė.

She stresses that parents shouldn’t be afraid to let children make small financial decisions — even if they don’t always work out. These moments aren’t mistakes but learning experiences that help them understand outcomes. Real resources make this learning even stronger. “Families often think they don’t have money for this, forgetting that the state allocates €122 per month for every child. This money can be directed to long-term savings or investments — ideally involving the child in the process. More and more parents are opening investment accounts for their kids, encouraging them to plan even small sums. Some are surprised to learn that our platform allows minors to invest as well. When they reach a responsible age, they can make decisions independently — even starting with €100. For example, my 13-year-old son has been deciding where to invest for a year already. Such experiences allow children to learn financial responsibility through real action, not just theory,” Grybinienė explains.

Educational expert Jovita Ponomariovienė agrees that experiential learning is the key. She shares several tips for teachers and parents. “For younger children, I recommend playful methods — the ‘store’ game, planning a class budget, counting pocket money, or saving toward a shared goal, like a class trip. These examples help children grasp the value of money and the consequences of decisions. For teenagers, it’s important to give more independence. Let them organize a class event with a limited budget, compare prices of goods and services online, or discuss how advertising influences their consumption. This develops critical thinking and responsible habits. For high school students, real-life situations should be discussed — first jobs, contracts, taxes, loans, and the basics of investing. Practical exercises work best: planning a personal monthly budget, comparing banking services, or simulating investment decisions,” she says.

Article link: https://www.tv3.lt/naujiena/gyvenimas/lietuvos-jaunimui-vis-dar-stinga-finansinio-rastingumo-ugdymo-situacija-spresti-imasi-net-patys-n1450941