How Belgium Fits Into Europe's Financial Literacy Gap

(MENAFN- ING) Europe's financial literacy gap: knowledge still lags behind

Understanding how interest works, or how to protect oneself against financial risks may sound straightforward, but across Europe these skills remain far from universal. Our latest ING Consumer Survey shows that financial literacy is still a major area for improvement in most European countries. The Netherlands is an exception, with half of the population having strong financial knowledge, while in the other countries where our survey was conducted (Germany, Romania, Poland, Spain and Belgium), this proportion was significantly lower. When it comes to low financial knowledge, the Netherlands is again the exception, with relatively few respondents struggling to answer the questions. In all the other surveyed countries, at least one in five residents could not answer any of the financial knowledge questions correctly or managed to answer only one out of five. This highlights a persistent gap that affects people's ability to make informed decisions about their personal finances.

On average, only 32% of Europeans are well educated financially

(Financial knowledge of residents per country based on knowledge test (low vs high))

One quarter of Belgians can barely answer one question correctly

Europe thus still has much to learn about financial literacy, and Belgium shows why: one in four Belgians got just one question right, while one in nine didn't get any correct. Even more concerning is that those with limited financial knowledge often believe they are average or even well informed compared to the typical Belgian. This reflects the Dunning Kruger effect, where people with little knowledge tend to overestimate their abilities, while those with a stronger understanding often underestimate themselves. In our survey, 63% of Belgians with low financial literacy rated their own knowledge higher than it is, whereas 66% of those with strong financial literacy rated it lower. The challenge therefore lies not only in the lack of financial knowledge itself, but also in the misplaced confidence that can prevent people from recognising financial risks.

How limited financial knowledge increases vulnerability

Financial knowledge appears to be closely linked to the ability to detect fraud. In our survey, 22% of Belgians indicated that they have experienced fraud that resulted in financial loss. What stands out, however, is that many respondents are unsure whether they had been victims at all, and this is far more common among those with low financial knowledge. Only 6% of the Belgians with strong financial literacy are unable to say that they have been victims of fraud, while this rises to 25% among those with limited knowledge. In a context where scams are becoming more frequent and more sophisticated, being able to recognise fraud is an essential skill for protecting one's finances.

Financial literacy also shapes how comfortable people feel when making longer‐term financial choices. Investing, for example, is an important way to build wealth over time, yet many Belgians remain hesitant. In the current economic environment, 44% of Belgians report feeling anxious about investing. This concern is even more pronounced among those with lower financial knowledge: half of them feel uneasy about taking investment decisions. Among respondents with high financial literacy, the share drops to 37%. This contrast suggests that greater financial knowledge helps build confidence, while limited understanding amplifies uncertainty.

Strengthening financial literacy as a key priority for Europe

In the context of volatile inflation and a more complex financial environment, financial knowledge is not a luxury but a necessity. This view is widely shared across the countries in our survey. Some 79% of all respondents believe that financial education should be part of the school curriculum. As Europe continues to adjust to a fast-changing economy, strengthening financial literacy should remain a clear priority for the years ahead.

A more in-depth analysis on this topic has been published both in Dutch and in French.

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