An analysis of financial literacy in Malta

Abstract

The main objective of this dissertation is to get an understanding of the level of financial literacy among adults (aged 18 years and over) in Malta. Given that the Maltese nation is facing changes in its policies especially those related to government state pensions, it is increasingly crucial that Maltese Citizens are equipped with enough financial knowledge to manage their finances and plan for their future. This study is split into two parts, the understanding of the demand and that of the supply side of the economy. In other words, this dissertation sets out to explore the financial literacy, behaviours and knowledge of the nation. Research was done through surveying different sectors within the Maltese population, as well as through interviewing financial practitioners in order to get their financial literacy perception as well an understanding of some of the products available for potential investors. The statistical analyses proved that the sectors targeted for this particular study (General Public through Facebook, GRTU Members, University of Malta students and staff, and the National Council of Women members), have more financial knowledge than expected. The bottom line is that even though financial literacy does not seem to be the issue, the majority of the population is not utilising their savings effectively since long term investments are something held by a minority. Hence, this is why practitioners insisted that as a nation we should keep on working to improve the level of financial literacy rooted in a strong education system.