Financial literacy: The fertile ground for a prosperous future.

The wealth generated in a country is the result not only of grand, emblematic decisions, but above all the result of thousands, or even millions, of small decisions made daily by each of us, without realizing the impact that these same decisions, when aggregated, can have, for example, on a national scale.

The aforementioned idea belongs to Professor Ernâni Lopes, who was trying to explain what Gross Domestic Product is – that is, the wealth produced annually in a country – and reflected, at the end of his explanation, on the importance of these individual decisions, however small they may be, being made appropriately, both ethically and in terms of economic and financial rationality.

This lesson is also inextricably linked to the well-known expression "everything is economics," insofar as economic rationale is present in all the choices we make, or decisions we take, even the most mundane ones.

Regarding less mundane decisions, whether individual or collective, we can focus on the decision to create a company.

To date, companies have been the greatest instrument for wealth creation that humanity has invented. It is companies that are able to mobilize resources and use them appropriately to innovate, to create products and services that satisfy the diverse needs of the population.

Companies are conceived, imagined, and created by people, and the deeper their financial knowledge, the greater the likelihood of them becoming better business leaders, making the best management decisions, and building companies with high potential for generating wealth and well-being for their employees, investors, and society. But managers aren't born managers. Investors aren't born investors. Both need to accumulate knowledge, and therefore it is fundamental to enable the citizens of a country, all its citizens, to make good decisions, because these decisions will influence not only their personal well-being but also the collective well-being.

October 31st is World Savings Day. This year, the event takes on special significance, as financial literacy is included in school curricula for the first time through the Citizenship and Development subject.

Financial literacy can serve as fertile ground for sound decisions regarding consumption, savings, investment, innovation, and many other areas that are the seeds of wealth creation and well-being.

It is this fertile ground that reinforces the foundations for the creation of future business leaders, in sufficient numbers and with the skills to strengthen the Portuguese business base and its competitiveness, diversifying, scaling, and incorporating activities that generate ever-increasing added value. It is also this fertile ground that fosters the emergence of investors capable of identifying good opportunities, recognizing risks, and avoiding pitfalls. Finally, and no less importantly, it is also this ground that allows for the formation of more informed citizens and consumers, capable of making the most rational and appropriate decisions, not only to maximize their individual wealth and well-being, but also in a way that is compatible with collective well-being.

There is also one element that deserves highlighting, as it constitutes an unavoidable reality: individual decisions regarding consumption, savings, and investment cannot be imposed by decree. "Nobody likes to be, or to feel, ordered around." This reality knows no borders and was underscored about two years ago by the testimony of the former executive vice-president of the Thailand Stock Exchange, Chanitr Charnchainarong.

Given the aforementioned reality, public policies should aim to create conditions so that, when a citizen or entrepreneur is faced with the need to make a financial decision, they possess the appropriate level of knowledge to identify the best option. Literacy in general, and financial literacy in particular, is an essential element in this process. Starting it at a young age, in school, and continuing it through university, by complexifying concepts and learning, undoubtedly yields dividends. Investing in education and financial literacy is therefore equivalent to creating fertile ground for the seeds of a prosperous future.