Earlier this year, I asked a room of Master’s students a simple question: “How would you calculate the interest on a €1,000 loan at 5 percent per year?” To my surprise, blank stares filled the room. One student ventured, “Is it just €50?” – not realising that interest compounds if unpaid.

In another session, a discussion about personal budgets revealed that several students had never tracked their monthly expenses.

These anecdotes are not outliers; they highlight a troubling gap. If business students exhibit such confusion in the classroom, what about their peers in literature or engineering? Clearly, a foundational education in personal finance is missing; and it’s needed now more than ever.

Why Financial Literacy Matters for Every Graduate

Financial literacy, understanding budgeting, interest rates, investing, and basic economics, is essential for all graduates, not just those in business fields. Every young adult will sign contracts, take loans, use credit or try to save for the future.

Studies link poor financial literacy with poorer financial wellbeing. Individuals with low literacy are more likely to have trouble making ends meet and less likely to maintain emergency savings. In other words, not understanding concepts like interest, inflation or risk can leave graduates financially fragile and unable to cope with economic shocks.

This is especially worrying in today’s environment of economic uncertainty, from rising living costs to fluctuating job markets ,where every graduate will face important money decisions. Financial literacy, therefore, isn’t just a “nice-to-have” for business majors; it’s as critical a life skill as reading or digital literacy for all students stepping into adulthood.

Digital Finance: New Tools, Old Fundamentals

The rise of digital financial tools in the last decade has both empowered and endangered young consumers. Today’s graduates have a world of investing and borrowing at their fingertips, stock-trading apps, peer-to-peer payment platforms, cryptocurrency exchanges, “buy now, pay later” services, often with little guidance.

Many of my students are eager to discuss cryptocurrencies or the latest trading app that “everyone is using.” Indeed, surveys show that younger people are far more likely to invest in these new instruments; one recent Banking and Finance Ireland survey found that one in five adults under 35 held cryptocurrencies, compared to just 3 percent of those over 55. Social media is filled with stories of quick gains, which can tempt inexperienced students into taking big risks.

What’s concerning is that enthusiasm for digital finance isn’t always matched by understanding core concepts. In the same survey, 16 percent of investors admitted they did not understand the fees or taxes involved in their investments. Gamified trading platforms make buying stocks as easy as playing a video game, but they don’t teach users about risk diversification or long-term planning.

The proliferation of digital tools doesn’t eliminate the need for financial basics; on the contrary, it makes that foundation more important. Without understanding concepts like compound interest, asset diversification, or the difference between speculation and investment, students are vulnerable to making costly mistakes online. The core issue remains education: fancy apps can’t substitute for financial common sense. As technology adds new options (and pitfalls), universities must ensure students learn the timeless principles that help them navigate any financial landscape.

A European Perspective: The Education Gap

In Europe, and particularly here in France, the challenge of financial illiteracy is compounded by an education system that historically overlooks personal finance. Money matters are hardly covered in the French school curriculum, and finance isn’t taught as a dedicated subject until university level. A recent national survey revealed that nearly one in three French adults confesses to major gaps in basic financial concepts, for example, not understanding how inflation erodes savings or how investments should be allocated.

Many also carry misconceptions; for instance, two-thirds of French people find it “abnormal” that their bank current accounts earn no interest, a sign of confusion about how modern banking works

This context presents a clear call to action. While countries like the UK have debated personal finance lessons in schools and Italy recently made financial education compulsory from elementary school onward, in France and much of Europe a student can easily earn a degree without ever learning to manage a budget or understand a loan agreement.

University leaders often assume students will pick up these skills at home or “learn by doing,” but the data suggests otherwise. French adults themselves wish they had been better prepared. The message is clear: European institutions of higher learning have a responsibility and an opportunity to fill this educational void.

Integrating Financial Literacy into the University Experience

How can universities ensure that even non-finance students graduate with essential financial know-how? There are several practical strategies to weave financial literacy into campus life and curricula:

• Core Courses: Introduce a foundational personal finance course open to all students (or even mandatory for first-year students). This could be a short module covering budgeting, debt, saving, and investing basics.
• Workshops and Seminars for Everyone: Organize regular seminars, guest lectures or bootcamps on personal finance topics, targeted at the general student population.
• Peer Mentoring and Financial Wellness Centres: Leverage the knowledge of finance students or trained peer educators to support others. Some campuses have created financial wellness centres where students can get one-on-one guidance on budgeting or debt management.
• Curriculum Infusion: Encourage faculty in various departments to incorporate financial examples or assignments into their courses. Personal finance doesn’t have to be taught only in finance classes; it can appear in a mathematics course (e.g. calculating loan interest and the “cost of borrowing” as a practical application), in sociology (studying the impact of financial literacy on society), or in engineering (discussing project budgeting).
• Digital Tools and Challenges: Universities can harness technology by providing access to reputable budgeting apps or interactive learning platforms for all students. By integrating these tools into orientation programs or dorm activities (think “budgeting challenge” competitions or investment simulation games), schools can engage students in hands-on learning that sticks. The goal is to make financial literacy part of interdisciplinary learning.

There’s no one-size-fits-all approach, but the key is flexibility: offer financial education through various channels such as courses, events, and digital tools so students engage with it throughout university. Even small actions, like budgeting talk or worksheets, can shift the culture when framed as life skills for independence and success.

Beyond Graduation: Resilience and Ethics

Financial literacy in higher education is about more than money, it’s about preparing well-rounded, resilient graduates. Universities don’t just train professionals; they shape individuals who must make wise decisions throughout life. Understanding personal finance is as important as any technical skill. Financially literate graduates are better equipped to face challenges like inflation, debt, or unexpected expenses, which benefit both them and society.

They also make stronger, more ethical citizens, less likely to fall for scams and more capable of questioning unfair systems. Learning about credit, insurance or investing teaches responsibility, foresight and fairness.

In my classes, I’ve seen how basic financial education changes students. They gain confidence, ask smarter questions and feel more in control of their futures. This is the outcome we should aim for: graduates who are not only knowledgeable in their field but also capable of managing their lives with confidence and integrity. By teaching financial literacy, we invest in our students’ long-term success as informed and ethical citizens.