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Adult Literacy, Numeracy, and Digital Literacy Strategy Crucial for Financial Well-being in Ireland

As Ireland moves towards a digital-first economy, concerns about financial literacy and digital exclusion are growing. According to a recent report by Adult Literacy for Life, financial assistance organizations like Money Advice and Budgeting Service (MABS) have highlighted the challenges of providing services online, particularly among vulnerable groups.

Digital Exclusion: A Growing Concern

The report highlights that digital exclusion has disproportionately affected low-income populations, rural areas, and certain minority groups, including:

  • Older persons
  • Irish Travellers
  • Migrants
  • People with disabilities
  • Survivors of domestic violence

This has led to a vicious cycle of exclusion, where those who are already marginalized are pushed further away from financial services.

Consequences of Digital Exclusion

The study found that digital exclusion increases vulnerability to fraud, as individuals may be forced to rely on others for assistance or opt for online methods of payment due to limitations in personal engagement with state services.

Financial Literacy: A Broad Issue

Financial literacy is not limited to those with literacy and numeracy difficulties. According to a 2004 study by NALA and EBS Building Society, adults with literacy and numeracy needs are more likely to be excluded financially as banking products become more complex and are delivered online.

Key Findings: Financial Well-being in Ireland

  • A 2018 report by the Competition and Consumer Protection Commission (CCPC) found that two core behaviors affect financial well-being for Irish citizens across all groups:
    • Active saving
    • Not borrowing for daily expenses
  • Only 25% of the Irish population can be considered financially “secure”, while 7% are struggling to make ends meet.
  • A recent survey by Moneysherpa found that financial literacy rates in Ireland are almost 20% lower compared to other Northern European countries.

The Need for an Adult Literacy, Numeracy, and Digital Literacy Strategy

In light of these findings, it is essential to develop an Adult Literacy, Numeracy, and Digital Literacy Strategy that addresses the specific needs of vulnerable groups and promotes digital literacy skills. This strategy must prioritize:

  • Education and training on financial literacy
  • Basic computer skills
  • Online safety

By investing in adult literacy, numeracy, and digital literacy, Ireland can promote financial well-being, reduce inequality, and support the economic inclusion of all citizens.