Critical financial literacy warning from Minister Şimşek!

Şimşek made an assessment regarding the importance of financial literacy for investors.

Minister of Treasury and Finance Mehmet Şimşek urged investors with low levels of financial literacy to be cautious in capital markets, stating, "We are launching an era of financial literacy in capital markets. We are implementing projects such as the Financial Literacy Portal, the Capital Markets and Finance Vocational and Technical Anatolian High School, the Finance Academy, and training programs for housewives."

"REDUCES VULNERABILITY TO FINANCIAL FRAUD"

Pointing out that rapid change and transformation in financial technology, new financial instruments, and issues like Ponzi schemes have increased the importance of financial knowledge, Şimşek said that many countries around the world are also conducting activities to raise public awareness of financial literacy.

Drawing attention to the fact that increasing domestic savings rates and directly transferring these savings to real sector firms through financial markets is a key element for countries' development strategies, Şimşek said, "By spreading financial education and financial literacy nationwide, individual investors will be able to make sound investment decisions and participate actively in financial markets on one hand, and on the other, savings can be channeled into financial markets as a stable source of investment through highly aware individuals. Improving the level of financial literacy reduces vulnerability to financial fraud and paves the way for making correct investment decisions."

Emphasizing that the level of financial literacy in Turkey also needs to be increased, Şimşek continued:

"Although public institutions, non-governmental organizations, and private companies carry out projects in the field of financial literacy, these activities are fragmented. In our country, financial literacy is taught as an elective course in vocational and technical high schools. Additionally, financial literacy courses are offered to a limited extent in some associate and undergraduate programs. There is a shortage of instructors within the scope of financial literacy education in primary education."

"VULNERABLE INVESTORS SUFFER LOSSES"

Stating that awareness of saving among households and firms will be increased through the improvement of financial literacy, Şimşek said, "In recent years, it has been observed that individual investors, especially those with low financial literacy, act with high profit expectations and take high risks in areas such as forex, crypto assets, and the stock market. It is seen that these investors, who remain vulnerable to misleading and incorrect guidance under the guise of tips and rumors, suffer losses. It is known that individuals with low financial literacy levels have difficulty in risk management, possess limited knowledge about investment products, cannot measure the characteristics and risk levels of investment products, and cannot read company financials."

Pointing to the importance of the steps they will take regarding financial literacy, Şimşek said:

"The steps we will take and the new projects will elevate investor behavior to a professional level, increase participation in capital markets, and prevent investment behavior driven by herd mentality. Investors with low financial literacy levels may suffer losses in capital markets; it is important for these investors to be cautious. In this context, we are launching an era of financial literacy in capital markets. We are implementing projects such as the Financial Literacy Portal, the Capital Markets and Finance Vocational and Technical Anatolian High School, the Finance Academy, and training programs for housewives. These projects will present investors with the reality that it is rational to act within the framework of a long-term and diversified portfolio approach, and most importantly, they will enable us to reach a more stable capital market level by increasing market efficiency."

"FINANCIAL LITERACY FOR WOMEN AND HOUSEWIVES"

Stating that the Capital Markets Board has been appointed as the coordinating institution for financial education activities conducted nationwide, Şimşek said, "We will implement important projects to increase the level of financial literacy in our country. With the Financial Literacy Portal prepared under the leadership of our Board, content that will appeal to all segments of society will be offered under the main headings of banking, budget, credit, and investment."

Providing information that a cooperation protocol between the Ministry of National Education's General Directorate of Vocational and Technical Education and the Capital Markets Board for the opening of a Capital Markets and Finance Vocational and Technical Anatolian High School has reached the signing stage, Şimşek noted:

"With this high school, it is aimed to train qualified human resources for the finance sector, providing 4 years of education in the field of capital markets and finance, supported by special programs and project applications. Work is ongoing to establish a Finance Academy to provide training for those who want to work in financial markets and those already working in the sector. Cooperation protocol efforts are underway between the Ministry of Family and Social Services and our Board for financial literacy training and training of trainers for nearly 800 thousand entrepreneurial women and housewives."