Cypriots Lag in Financial Literacy, Survey Reveals
Study Highlights Gaps in Risk Management, Compound Interest Knowledge, and Digital Financial Awareness
According to the survey's key findings, individuals aged 15 to 79 scored an average of 56% in financial literacy. Despite a high percentage of correct answers on loan interest rates (91%) and investment risk awareness (89%), nearly 50% of respondents lacked knowledge of risk management, while 65% were unfamiliar with compound interest.
The survey underscores the need for enhanced policies to promote financial literacy, as highlighted during the presentation of the results on Thursday at the Central Bank of Cyprus (CBC).
The results were presented by Dr. George Kyriakou, Director General of Finance, Statistics, and Research at the Central Bank of Cyprus, in a briefing with journalists. Also in attendance was Professor Michalis Haliassos (Goethe University Frankfurt, CEPR International Advisory Board for CyFLEC), who emphasized the importance of financial education for households.
Dr. Kyriakou explained that financial literacy, as defined by the OECD, refers to the combination of knowledge, skills, behaviors, and attitudes necessary to make sound financial decisions and achieve individual financial well-being.
He further clarified that digital financial literacy encompasses the knowledge, skills, and behaviors needed to understand and safely use digital financial services and technologies to support financial stability.

The OECD, in collaboration with the CBC and with technical assistance from the European Commission, conducted the nationwide survey in December 2023, with a sample size of 1,360 individuals aged 15-79, representing gender, age, education, and employment status.
The questionnaire was based on the OECD’s international financial literacy survey for cross-country comparisons and included additional questions aligned with a 2018 CBC survey.
Dr. Kyriakou noted that, while respondents demonstrated relatively strong financial knowledge in specific areas, such as loan interest rates (91%) and investment risk awareness (89%), performance in other key financial concepts was concerning.
- 50% of respondents were unfamiliar with risk management.
- 65% did not understand compound interest.
- Only 23% closely monitored their personal finances.
- Despite 85% actively saving, just 32% set long-term financial goals.
- Only 30% compared financial products before making a purchase.
- Just 21% assessed their ability to afford a financial product before buying it.
Regarding financial decision-making habits, the survey found:
- Only 29% preferred saving for the future over immediate spending.
- Just 40% prioritized future financial stability over present-day expenses.

Cyprus scored 44% in digital financial literacy, with only 10% of respondents reaching the minimum required score of 70/100.
- Only 15% knew that personal data shared online could be used for targeted commercial or financial offers.
- Just 18% understood that cryptocurrencies do not have the same legal tender status as fiat currency.
- 17% of adults in Cyprus fell victim to financial fraud in the two years preceding the survey.
- Among fraud victims, 85% failed to meet the minimum financial literacy threshold.
Dr. Kyriakou also highlighted concerns regarding financial well-being:
- Only 50% of adults in Cyprus were satisfied with their financial situation.
- 43% felt that financial difficulties controlled their lives.
- 33% worried about covering basic living expenses.
- Only 22% could handle an unexpected expense without borrowing money.
- 39% had experienced periods in the past year where their income did not cover their expenses.