Financial literacy in insurance and pensions : insights from Maltese secondary schools

Abstract

This research explores the levels of insurance and pension literacy among Maltese adolescents aged 14–15, aiming to assess not only the level of insurance and pension knowledge but also the financial attitude of the participants and the role of educational and social background. The study identifies a significant deficiency in both national and international financial education discourse, which often sets aside particular topics like pensions and insurance and focusing on general subjects such as budgeting and saving. This reasoning is based on the demographic evolution of Malta, growing financial complexities and lack of inclusion of such key areas in the curriculum. A deductive, quantitative research methodology is used through a structured questionnaire distributed to 125 students within the State, Church and Independent schools in Malta. The instrument is divided into four sections: demographics, factual knowledge, financial attitudes and influencing factors. Data is discussed using descriptive statistics, inferential statistics such as Kruskal-Wallis test and linear regressions. The results indicate that the mean knowledge score is significantly high (M = 24.13 out of 27) and no statistically significance difference among school type, gender or socioeconomic background. However, insurance education is related to a higher financial attitude (p = 0.013), even though it did not influence the knowledge scores. In contrast, pensions education shows no statistically significant impact on either knowledge or attitudes. These results suggest that while Maltese teens possess a strong factual foundation in insurance and pensions, this may not stem from formal school-based instruction. Financial attitudes are positively correlated with knowledge, revealing the significance of the mindset in building competence. The research indicates that curriculum modifications are necessary to incorporate more engaging and experiential methodologies, particularly with long-term financial matters such as pensions. Policymakers, educators and curriculum developers should offer practical financial education to enhance long-term financial capability.