“Financial education is a set of knowledge, skills, and behaviours that help us manage our finances in a way that allows us to achieve our goals—in other words, to live the life we want,” explained Rositsa Vartonik, Founder and Director of the Financial Literacy Initiative Foundation, in the programme Social Network on NOVA TV. It is not enough to know how to manage our money—we must also apply this knowledge in practice.

The first lessons in financial literacy are either received or not received from our parents, which is why children’s financial literacy often reflects that of their parents. Later on, educational institutions should also become involved in order to achieve a more level starting point. “Imagine a child growing up in a family where the parents do not have in-depth knowledge. It would be appropriate and fair for financial literacy to be taught in schools as well, so that all children can have access to this knowledge,” Rositsa Vartonik emphasised.

She pointed out that there are two particularly problematic areas in which Bulgarians struggle with managing their personal finances. One is how to protect themselves against financial risks. The most obvious examples of such risks are natural disasters—floods, earthquakes. There are insurance mechanisms that can help us, but we do not use them to their full potential. The other equally important issue is thinking about tomorrow—long-term financial planning, including planning for the retirement period of our lives.

Watch the full interview!