Three Out Of Four Bulgarian Households Are Financially Vulnerable

The results of the surveys on the level of financial literacy of the Bulgarians over the last ten years show that significant efforts are needed to increase it. This is recorded in a draft National Financial Literacy Strategy (2021-2025) published for discussion by the Ministry of Finance.

In Bulgaria, no periodic studies on the level of financial literacy based on the same methodology have been carried out so far  . Therefore It is difficult to make a full comparison of the evolution of the level of financial literacy indicators over the years and to outline clear-cut trends. Nevertheless, several studies have been made in the past ten years, including through programs and projects of international organisations that assess the level of financial literacy and how it has changed over the years.

In 2017, Junior Achievement Bulgaria conducted a nationally representative survey on the financial vulnerability of Bulgarian households. The aim of the study was to examine financial vulnerability as a consequence of the financial literacy level in the country.

The results showed that compared to Europe, financial vulnerability in Bulgaria is 33% higher (3 out of 4 Bulgarian households are financially vulnerable), but it also stems from insufficient financial literacy (64% of households in Bulgaria do not save; 38% do not draw up a budget for any reason - neither for periods nor for certain events; 35% say that they have financially dependent persons , but 28% of them neither save nor have life insurance; 28% of households are not informed about financial matters, and 32% rely on information from relatives and acquaintances instead of financial professionals.

Another financial literacy survey, carried out globally in 2014, estimated that 35% of...