Introduction: The Silent Challenge of Financial Literacy
In Malta, a profound challenge is emerging, as highlighted by a local financial expert. The issue at hand is the significant lack of financial literacy, which has silently affected many, creating a group referred to as “silent patients.” Luca Caruana of Lovin Malta emphasizes that despite having regular incomes, these individuals are barely making ends meet due to insufficient financial knowledge.
Financial Literacy: A Societal Taboo
Luca Caruana shares his insights as a financial educator, noting the broader societal impact of this deficiency. In Malta, discussing money remains taboo, often seen as an uncomfortable and even shameful topic. This societal norm discourages many from seeking the necessary help to manage their finances better, which could otherwise alleviate their financial distress.
The Consequences of Financial Ignorance
“But what does this struggle actually lead to?” Caruana asks. Despite drawing decent salaries, many people are overwhelmed by stress due to their financial situations. A 2023 PWC survey underscores this, revealing that 57% of Europeans cite financial issues as their top stressor, exacerbated by inflation and escalating living costs without corresponding increases in living standards.
The Stigma of Seeking Help
There’s also a stigma associated with financial help, especially among those perceived as successful. Many avoid seeking assistance to protect their social standing. These “motionless victims” are typically middle-class professionals like lawyers or tech experts, aged between 25 and 45. Despite their income, they struggle financially and feel too embarrassed to discuss these issues openly.
Silent Suffering and Financial Education
Caruana points out that this silence breeds “money shame.” Even those with substantial savings often don’t know the best steps to manage their money effectively. He criticizes the lack of clear communication from financial advisors and the mismanagement in selling financial products, like pension schemes, without full transparency.
The Necessity of Financial Education
Highlighting the importance of financial education, Caruana applauds government efforts to alleviate financial illiteracy but notes they don’t reach everyone. He calls for more accessible financial education that also addresses the needs of financially stable individuals facing the housing and cost of living crises in Malta.
Conclusion: A Call for Action
Caruana is advocating for engaging financial education at critical stages such as in high schools and universities to prepare young adults for financial independence. He emphasizes the need for practical, engaging workshops that go beyond theoretical knowledge, preparing them for real-world financial decisions. This educational approach can significantly reduce the prevalence of financial misinformation and poor financial decisions, particularly in today’s digital age. If you or someone you know needs guidance in managing finances, Luca Caruana encourages reaching out through his professional network on LinkedIn.