Poor Financial Literacy Sparks Soaring Personal Bankruptcies in Czech Republic

With the number of Czech personal bankruptcies continuing to rise at a rapid clip, Czech financial literacy professionals are focusing on the nation’s ability to help increase the level of financial education among its populace. In a recent survey conducted by the Czech finance ministry it was illustrated that the country’s citizens spend only five minutes reviewing a loan contract they are planning to sign, while roughly sixty-six percent do not understand the differences between a credit card and a banking card.

Amid rising calls for greater governmental support of financial education programs, financial capability proponents are promulgating the virtues of financial literacy programs and services for the Czech population which, to date, has had minimal exposure to opportunities in the nation’s educational system for personal financial education. Recent positive momentum is giving financial literacy an injection of spirit in Czech republic, particularly from NGOs that are steering traditional providers of financial products to modify and simplify their offerings to best position average citizens to manage their financial products.

Financial education industry watchers are looking closely at financial literacy developments in the Czech Republic, as many contend that the nation’s success in supporting personal financial capability will impact the financial literacy agendas of nearby nations such as Austria, German, Poland and Slovakia. Primed for an infusion of support for financial education, this region should see a rise in financial literacy in the months and years ahead.