Financial literacy is formed by skills and knowledge, allowing a person to make decisions regarding financial resources and services available to him/her.
Basic financial knowledge - a person is able to plan his/her budget, has knowledge regarding the range of the offered financial services and understands their potential risk level and security aspects, and can compare various offers to determine the most suitable for his/her needs.
Strategy of financial literacy
In order to increase the level of financial literacy of the Latvian society, the ALCB participates in the implementation of “Financial Literacy Strategy of the Population of Latvia 2014-2020”, creating financial literacy training materials and participating in the annual Financial Literacy Week.
Financial literacy is also a joint priority with the European Bank Federation, which has become especially important as a result of the disappearance of borders of countries in the global financial market. The European Bank Federation facilitates financial education, using various means, including several publications and initiatives regarding financial literacy, thus emphasizing the commitment of the industry to provide consumers with a better understanding of financial services.