ATA News

Money Week, Sejko: BoA, two important strategies on financial literacy and inclusion

TIRANA, March 18 /ATA/ The Bank of Albania and the Albanian Association of Banks, in cooperation with the Ministry of Education and Sports, launched the Global Money Week on Monday.

The theme of this year’s Money Week will be: “Protect your money, secure your future!”, with the aim of raising public awareness about the risks associated with online scams, as well as other risks stemming from unreliable information and advice.

In his remarks at the launch of Global Money Week, the BoA Governor Gent Sejko said that in today’s digital era, young individuals are frequently exposed to financial advice, advertising, and investment opportunities through social media and their peer networks. In result, it’s crucial to comprehend that financial market participation, even in its most basic forms, carries broader economic implications. The innovative investment methods and payment instruments can enhance efficiency and reduce costs for consumers. They indeed open many doors to the future, yet they also introduce risks if not accompanied by sufficient financial literacy and appropriate market regulation and supervision.

Instances of occasional successful investments in unregulated products should not be seen as indicators of future or sustainable success. It’s important to emphasize that these can pose significant risks when conducted within markets that lack regulation and supervision.

Recent global challenges, including the pandemic, conflicts/ war, and climate change, have underscored the importance of informed and secure financial decision-making, not only for personal financial health but also for the broader financial system’s stability. The swift pace of digital transformation and the urgent issues raised by climate change are reshaping our engagement with financial instruments and relationships. Young people have a unique opportunity to use their resources as a force to induce a positive change in both society and environment. Accordingly, the Bank of Albania has embarked on two significant strategies: 1. “The Strategy for the Management and Supervision of Climate-Related Financial Risks”; and 2. “The Strategy for Enhancing Financial Education and Inclusion”.

In response to these challenges, and to foster a culture of financial literacy, the Bank of Albania is implementing a comprehensive strategy for financial education and inclusion, which certainly is addressed to children and young people. This strategy, developed in collaboration with key stakeholders, like the Ministry of Education and Sports, the Albanian Bank Associations, the World Bank etc., aims to boost financial literacy across Albania.

It serves as a blueprint for educational bodies, financial institutions, businesses, and NGOs to develop and implement collaborative policies, programs, and educational materials, ultimately enhancing the country’s financial literacy. Advancing this initiative presents obstacles, thus there is a growing necessity of exchanging experiences and learning from one another to enhance and advocate for a stronger financial literacy in our country.

Engaging in discussions about money with our children is a simple yet effective way to cultivate financially aware individuals. Global Money Week plays a central role in initiating these crucial conversations, allowing young people and their families to explore fundamental financial concepts such as budgeting, saving, lending, and the implications of uninformed financial decisions

The financial landscape is evolving rapidly, technological advances are changing how children learn in every field. As we navigate a changing world, it is vital for young people to acquire the skills, knowledge, and confidence to manage their financial future in a responsible manner.

The Minister of Education and Sports, Ogerta Manastirliu, in her remarks, emphasized the importance of financial literacy to navigate the challenges of the future.

“The dimension of financial literacy in a technological world with a digital perspective takes on special importance also for cyber security. We have tried to introduce the curricula that streamline financial literacy in the first grades and with the support of BoA we have developed modules to receive information regarding financial education”, said the minister.