CySEC and University of Cyprus Collaborate for Financial Literacy: Insights, Initiatives, and Impact

The collaboration between the Cyprus Securities and Exchange Commission (CySEC) and the University of Cyprus's Faculty of Economics and Management (FEM) in organizing the discussion titled ‘What is Today’s Best Investment’ proved to be a significant and successful event. Held on November 29, the event aimed to enlighten the public about finance, investments, and the crucial role of financial literacy in the current economic landscape.

Elena Karkoti, Officer A’ at CySEC, and Professor Andreas Milidonis from the Department of Accounting and Finance at FEM played key roles as main speakers. The discussion, moderated by Assistant Professor of Economics Philippos Louis from the Department of Economics, delved into intriguing data on the state of financial literacy in Cyprus, emphasizing the positive impact of financial education, especially on the youth and their family environment.

Philippos Louis highlighted the nuanced difference between financial knowledge and financial behavior, bringing attention to the influence of cognitive biases on decision-making despite having adequate knowledge. Elena Karkoti stressed the critical importance of financial literacy in navigating the rapidly evolving technological investment landscape, particularly for safeguarding the younger generation of investors.

Insights from CySEC's survey on retail investor behaviors and habits were shared during the discussion, revealing significant disparities between what investors know and how they behave in their investment decisions. The survey underscored the necessity of initiating financial education from childhood to instill appropriate attitudes and behaviors later in life. Karkoti underscored the significance of lifelong learning, emphasizing its contribution to individual and societal financial resilience and well-being.

Professor Andreas Milidonis underscored how financial education acts as a crucial shield for citizens against potential financial mistakes, ultimately promoting their overall financial well-being. The University of Cyprus has made commendable strides by introducing relevant courses at both undergraduate and postgraduate levels, seamlessly integrating financial education into the curriculum.

The Department of Accounting and Finance at the university offers undergraduate courses in financial education and spearheads similar programs in various secondary schools. Additionally, the Department of Economics has introduced an undergraduate course in behavioral economics, which is available as an elective for all UCY students. Collaboratively with the Department of Psychology, they also offer a specialized postgraduate program, MSc in Behavioral Economics.

The outcomes of the discussion have given rise to a new research initiative between CySEC and the University of Cyprus, signaling a commitment to gathering valuable data for analysis and fostering further collaboration between the two organizations. This collaborative effort reflects a shared dedication to enhancing financial literacy and education in Cyprus, contributing to a more informed and empowered populace.

By fLEXI tEAM