4 min read · Jul 23, 2023
When it comes to financial literacy, Denmark, Norway, and Sweden top the list as the most financially literate countries in the world. But how did these Nordic countries become so financially savvy? In this article, we will explore the factors that have contributed to their high levels of financial literacy, and what we can learn from their success.
One of the key factors that have contributed to the high levels of financial literacy in Denmark, Norway, and Sweden is education. In these countries, financial literacy is taught as part of the mandatory curriculum in schools, starting in primary school. The subject covers topics such as budgeting, saving, investment, and debt management.
According to the PISA financial literacy assessment conducted by the OECD in 2018, Denmark, Norway, and Sweden, all scored well above the OECD average for financial literacy among 15-year-olds.
By teaching financial literacy in schools, these countries are ensuring that their citizens are equipped with the knowledge and skills they need to make informed financial decisions. This is especially important in today’s world, where financial products and services are becoming increasingly complex.
Financial inclusion is another element that has contributed to the high rates of financial literacy in Denmark, Norway, and Sweden. It is 99% of adults hold a bank account, according to the Global Findex database of the World Bank.
Financial inclusion refers to the widespread availability of financial services such as bank accounts, credit, and insurance. Financial inclusion has been aided in Norway by the government’s decision to mandate bank accounts for all people.
In Sweden, the government has put in place a universal banking system to guarantee that every citizen has access to fundamental financial services. With a substantial percentage of the population having access to bank accounts, credit, and insurance, Denmark has a high level of financial inclusion.
The cultures of Denmark, Norway, and Sweden are a third element that has led to the high levels of financial literacy in those countries. Saving money and making investments are seen as crucial aspects of life in various nations. This way of thinking contributes to the promotion of financial literacy since it increases the likelihood that consumers will interact with financial services and products.
Based on a survey conducted by the European Central Bank in 2019, Denmark, Norway, and Sweden all ranked highly for their attitudes toward saving. For example, 84% of Danes said they save regularly, compared to an EU average of 63%.
The governments of Denmark, Norway, and Sweden have all implemented national strategies for financial education. For instance, they have constructed regulatory frameworks that guarantee financial products and services are open to consumers and have developed financial education programs and campaigns.
A national strategy for financial education has been formed in Denmark and Norway by the government, and it includes programs like financial education in schools, financial literacy campaigns, and assistance for groups that promote financial education.
The national policy for financial education in Sweden is being developed and implemented by a council on financial education, which has been established by the government.
Finally, the Nordic nations are renowned for their technological breakthroughs and inventiveness. This has sparked the creation of cutting-edge financial services and products that are simple to use and comprehend, which in turn encourages financial literacy.
Fintech businesses that offer user-friendly financial goods and services, like mobile banking apps and investment platforms, are numerous and inventive in Denmark. There are forward-thinking fintech businesses in Norway that provide online financial services like mobile payments and investing platforms. Innovative fintech businesses that provide online financial services including mobile payments, budgeting software, and investing platforms may be found in Sweden.
According to a report by Deloitte, the Nordic countries are home to some of the world’s most innovative fintech companies, with Sweden in particular being a leader in areas such as payments and digital banking.
Sweden, Norway, and Denmark are the nations with the highest levels of financial literacy in the world for a reason. To make sure that their residents have the information and skills necessary to make wise financial decisions, they have made investments in education, financial inclusion, culture, government support, and innovation. Other nations can seek to acquire comparable levels of financial literacy and assist their inhabitants in reaching financial health and well-being by taking lessons from their achievements.
Lastly, I can confidently conclude that individuals can have a better understanding of their financial condition and the ability to make well-informed decisions to improve their financial well-being with financial education. In light of the differences in financial literacy around the world, we hope that this encourages us to seek out fair financial education and spread what we learn.
