Overwhelming majority of young people without financial literacy think they know how to manage money and risk losing it

An overwhelming majority of Portuguese youth lacking basic financial knowledge—74% of those aged 15 without essential skills—believe they are capable of managing money, displaying 'overconfidence' that leaves them vulnerable to fraud and financial loss, according to a new study by the Banco de Portugal. The report, which analyses data from the OECD's PISA 2022 module, highlights that while Portuguese students perform similarly to their European peers in financial literacy, they have a lower percentage of top-tier performers. The study also notes that young people are increasingly using digital financial tools, such as mobile apps and online payments, without the necessary expertise to navigate the associated risks.