Is Literacy a Thing in an Ever-More Complex World?
How we’re introducing literacy to our classrooms this school year
“Literacy is a bridge from misery to hope,” said Kofi Annan. This is the founding principle behind International Literacy Day, established by UNESCO on September 8, 1967.
The former Secretary-General of the United Nations was right: literacy is undoubtedly a bridge to equality, dignity, and a more inclusive world for all.
So, as a language teacher, I’ve played my part in presenting literacy as a way to bridge the societal gap and allow everyone to grow to their full potential.
In 2020, at least 773 million adults worldwide were lacking basic literacy skills
The numbers don’t lie, and according to data from UNESCO, one in seven people over the age of 15 lacks fundamental literacy skills.
We have come out of almost three years of the COVID-19 pandemic. Before that, more than 260 million children and adolescents lacked foundational literacy skills. During the pandemic, that number increased to 1.6 billion children and adolescents. What is the state of illiteracy ahead in 2024? — World Literacy Foundation
If you live in the United States, here are the numbers provided by the National Literacy Institute:
On average, 79% of U.S. adults nationwide are literate in 2024.
54% of adults have literacy below a 6th-grade level (20% are below a 5th-grade level).
Low levels of literacy costs the US up to 2.2 trillion per year.
34% of adults lacking literacy proficiency were born outside the US.
Massachusetts was the state with the highest rate of child literacy.
New Mexico was the state with the lowest child literacy rate.
New Hampshire was the state with the highest percentage of adults considered literate.
The state with the lowest adult literacy rate was California.
Meanwhile, here in Portugal, in the last fifty years, we’ve come a long way in the literacy factor.
I witnessed this change happening firsthand after working with other experts to find new ways to promote literacy.
I know we’ve made a joint effort to make a change in the literacy tide. But, despite all the work we’ve put in, the results are still shallow and they take a while to produce effect.
The numbers don't lie.
The latest data available from the European Central Bank (ECB) for 2020 puts the Portuguese, Cypriots, and Italians at the bottom of the list. Germans, Dutch, and Finns top the ranking.
Portugal ranks last in financial literacy in the Eurozone
In 2020, Portugal was in last place in the financial literacy ranking of the 19 Eurozone countries, according to data from the ECB economic bulletin.
Twenty-five percent of Portuguese, 35% of Cypriots, and almost 40% of Italians answered at least three of the five questions correctly, compared to 65% of Germans and Dutch.
The questions were related to topics such as risk diversification, inflation, arithmetic, and compound interest.
From my experience in literacy-related subjects, there’s an urgent need to work at the financial literacy level here in Portugal.
Every day I hear about people falling for scams or simply being faced with financial issues because they didn’t read the fine print before signing a document.
However, literacy is a complex skill going beyond the mere ability to read and understand.
So, a new educational paradigm at the financial literacy level is the type of practical issue I’d like to discuss on International Literacy Day 2024.
Our financial literacy deficit is the reason many institutions are trying to make these soft skills accessible to everyone by having them included in the national education system.
Should literacy be a subject at school?
International Literacy Day (ILD) 2024 runs under the following general theme:
Promoting multilingual education: Literacy for mutual understanding and peace.
I’m among those who work toward having literacy as part of the curricula in schools.
As far as I know, the process is already in motion, and in Portugal, the next step is about to be taken soon.
So, I can confirm financial literacy is definitely going to be a subject in Portuguese schools.
There’s already a pilot project approved by our government ready to be rolled out this year in seven schools, five of them in the public system.
In a society marked by globalization, accelerated technological development and uncertainty about the future, schools have been revisiting their organizational and pedagogical processes under Decree-Law 55/2018 of July 6 to ensure that all students have the right to learning, educational success and a high-quality education. — in Diário da República Portuguesa
I’m positive this is undoubtedly a stepping stone towards promoting financial literacy among young people.
However, we can’t overlook the critical role families play in financial education.
In Portugal, many of us lack sufficient financial knowledge, and discussing money is still somewhat taboo. But breaking down this taboo is essential, and something we must aspire to do as a community.
Talking about finances at home shouldn’t be a problem. Open conversations about finances are key to making more informed, sustainable decisions for the future.
If families begin to introduce the finances topic in everyday conversations, it will help deconstruct this issue.
Ultimately, this will empower everyone, young and old, to meet the new challenges we face in our global society.
When we sign any type of contract in Portugal, the documents can range from 6 to 15 pages, filled with small print.
While recent amendments and European regulations have led to larger font sizes, the volume of information is still overwhelming. Too much text often leads to confusion, making it difficult for people to fully understand what they’re agreeing to.
That’s why we need to focus on simplifying financial products and communication, ensuring everyone can easily comprehend and handle these documents.
I do understand there’s a reason behind all the paperwork.
I’m not saying it’s deliberate, but these documents are not necessarily in favor of the consumer. They exist primarily to safeguard institutions.
Still, some of the information is undoubtedly important, and not understanding it can negatively impact the consumer.
This is why financial literacy is such a crucial topic today — not just in Portugal or the United States, but globally.
The world is more interconnected than ever.
Nowadays, there are so many of us who experience a sense of disorientation, a phenomenon described by David Harvey in his concept of “compression” in Time-Space Compression and the Post-Modern Condition.
Harvey’s “compression” is a metaphor for a “shrinking world.” Globalization makes it even more pressing for everyone to be well-informed and capable of making sound financial decisions.
I want to suggest that we have been experiencing, these last two decades, an intense phase of time-space compression that has had a disorienting and disruptive impact upon political-economic practices, the balance of class power; as well as upon cultural and social life. — David Harvey
“Less is more,” says Ludwig Mies van der Rohe’s famous quote, offering a minimalist perspective on human design, advising restraint in the face of distractions and clutter to create a more significant impact.
Of course, in some matters, communication must be thorough, and we can’t hide information. However, sometimes it would be best to have a summary or a table alongside it that clearly explains and summarizes all relevant information for the consumer when they need to buy a product, make an investment, or take out insurance.
So, under a new societal and economic paradigm marked by volatility, uncertainty, complexity, and ambiguity, it’s crucial to ensure consumers have all the necessary information in a clear and accessible way so they can make optimal decisions.
Yes, because very few people read all the pages in a contract, right? And then, when the time comes, no one fully understands the full scope of what they’re getting into.
It’s rather obvious how most of us are not well-equipped to handle financial bureaucracy.
From previous research, I know data is showing an improvement in financial literacy, though there’s still a significant gap compared to the average, particularly in studies conducted so far.
I recently reviewed the results of PISA 2022, a study of young people from 20 OECD countries, where Portugal performed reasonably well, landing in the middle of the table.
There’s still a long way to go, but I’m fairly optimistic.
I expect future generations we’ll be better equipped to make sound decisions.
With the government’s new school program, I know we’re on the right path to improving literacy across the board.
However, we still need to train our educators to ensure this initiative succeeds in the long run, and as the quote goes, “The beautiful thing about learning is that no one can take it away from you.”
Thank you for the gift of your precious time. If you have any questions or would like to share your thoughts, please join the conversation by leaving a comment below.
We are hampered by the numbers of people who don’t have proficiency in one language even.
When I owned my home renovation business Bob prepared an estimate for the work to be completed and I prepared a contract listing all the work we agreed to do
Both sides read and agreed. This created our contract work order. I was surprised by the number of people who didn’t understand how to read the contract
before they signed.