PISA, the Programme for International Student Assessment, is a survey of 15-year-old students organised by the OECD. It assesses whether students have the knowledge and skills essential for participation in social and economic life. PISA assessments cover the main school subjects, namely reading, mathematics and science, and since 2012 it has included a module assessing the financial literacy of young people.
Financial literacy can be defined as the knowledge and understanding of financial concepts, as well as the skills and attitudes taken to apply this knowledge in order to make financially correct and secure decisions.
Portugal took part in the PISA financial literacy assessment exercise for the first time in 2018. Among the countries analysed, it came 6th in the percentage of students with basic financial skills, and 7th (with 505 points) in the overall financial literacy indicator, which put it in line with the average for OECD countries.
In 2022, Portugal took part in the financial literacy assessment exercise for the second time.
What are the main results of PISA 2022?
From the presentation of the PISA 2022 results now published, we learn that Portugal scored an average of 494 points in financial literacy (down 11 points on 2018), occupying the 9th place in the ranking, which reveals a level of financial literacy below the OECD average.
This ranking is explained by the fact that more socioeconomically advantaged students perform better than more disadvantaged students. The socio-economic status of students weighs on financial literacy performance in OECD countries and economies.
Performance in financial literacy is also explained by performance in mathematics and reading.
Boys performed better than girls, as is the case in some countries, including Portugal. In other countries, girls performed better.
Immigrant pupils also perform less well than non-immigrant pupils. In Portugal, the difference was 26 points, below the European average (30 points).
So what should be done?
If we cross INE's information, that 20.1% of Portuguese people are at risk of poverty, with the results now revealed by PISA 2022, we quickly come to the conclusion that in order to combat poverty, we need to bring financial education to schools and families.
Families have been progressively tightening their belts, and to break this cycle of poverty solutions are needed to increase their financial stability. In order to do this, financial education needs to be taught to children and young people from an early age, to provide them with skills for a more prosperous life. They need to be equipped with the tools they need to make safer financial decisions today and in the future, and to adopt more financially correct attitudes and behaviours.
This is what the António Cupertino de Miranda Foundation has been doing since 2010, implementing financial education projects for all audiences: children, young people, older people and people with cognitive impairment.
Special mention should be made of the "No Poupar Está o Ganho" (Saving is Winning) project, now in its 15th edition. This last year's edition involved more than 18,000 students, 920 classes and 750 teachers. It is aimed at students and teachers from all levels of education and is being implemented nationwide.
With results scientifically proven through a Social Impact Measurement Study carried out by the Faculty of Psychology and Educational Sciences of the University of Porto, it is a project that shows evidence of improvement in students' financial skills, math grades and empathetic relationships with their families.
It contributes directly to the implementation of the Core Competencies for Financial Education, as it offers schools an integrated program.
It provides teachers and students with all the educational resources they need to learn about financial concepts, objectives and priorities, both physically and through a digital platform.
The relevance of this project is unquestionable. Financial education is not just about managing personal resources, it is also a catalyst for entrepreneurship and innovation. Well-informed young people are more likely to start businesses, create job opportunities and promote economic growth.
By investing in financial education projects, the António Cupertino de Miranda Foundation addresses a serious social deficit - financial illiteracy - and invests in Portugal's future, preparing new generations to face economic challenges with confidence and competence.
