Sweden financial literacy survey shows 46 percent pass basic tests

A new survey by Finansinspektionen reveals that only 46 percent of Swedes can correctly answer three fundamental questions regarding interest rates, inflation, and risk diversification. Nearly 30 percent of respondents could answer at most one question correctly.

Significant knowledge gaps were identified in specific areas. For instance, only 17 percent of respondents understood that bond prices fall when interest rates rise, while nearly half did not know the answer. There is also a notable gender gap in financial confidence and knowledge; 71 percent of men answered compound interest questions correctly compared to 52 percent of women. Additionally, women were more likely to report not knowing the answer to questions regarding investment risks.

Moa Langemark, a consumer protection economist at Finansinspektionen, noted that many individuals face both knowledge gaps and significant uncertainty regarding their financial understanding, which can hinder the ability to make well-founded economic decisions.