As the Department of Finance prepares to launch its National Financial Literacy Strategy later this week, the question on the minds of many starting out in their careers is not knowledge related, but facts on the ground.
But first, when it comes to financial literacy, the core objective of any such programme should be to enable people make informed financial decisions. Examples include understanding the benefits of various tax reliefs. Or calculating whether it is better to pay off a mortgage early, invest in the stock market or save for retirement. This way, people should be in a better position to use their money in ways that underpin their long term financial needs.
A major financial wellbeing pillar is security of tenure through homeownership.
But across Ireland today, it has become incredibly difficult to do this. New home completions have fallen from 93,000 in 2006 to 30,000 in 2024. Additionally, the population has risen by one million which means the competition for available properties is extremely intense.
Homeownership serves several key financial wellbeing functions. First, it provides security of tenure. But of equal significance, it also helps build financial security. The paydown of a mortgage and rise in property value creates equity which homeowners can utilise a number of ways.
But in 2025, homeownership remains elusive for a majority.
Investment taxes are just too high
Increasingly, in the absence of opportunities to buy a home, a growing number of would-be home buyers are looking to grow their money. This is done for a variety of reasons. Some are looking to the future and having a deposit for a home if and when the opportunity arises. Others are looking for better returns on their cash. And there are those that simply want to invest to grow their money over time.
Despite the fact Ireland is home to many leading Exchange Traded Funds and other investment firms, the tax on investment returns here is unsustainable. Many well-informed twenty somethings are alarmed at the 41% exit tax that currently applies to fund growth. In fact, their levels of financial literacy are so sharp, they wonder why higher risk investments, including equities and cryptocurrencies are taxed at the lower C.G.T. rate of 33%.
Questions for the Department of Finance
For many well-informed employees, the question they have in advance of the Department of Finance strategy launch is not so much how as why.
Instead of needing to learn how compound interest works on investments, they want to know why exit tax is so high. These are the types of everyday concerns employees of all ages ask as I work with them to develop personal financial resilience.
MoneyWhizz free financial literacy in secondary schools
MoneyWhizz is a leading developer of financial literacy content. The material is used by leading employers and schools across Ireland. Over 100 secondary schools have enrolled for the 2024 / 2025 course (it is available free of charge to schools). It offers senior cycle and TY students commercial-free lessons on earning, income, taxation, budgeting, investing, insurance and more. The easy-to-access video lessons are available to be run in a class setting or individual basis. For teachers, there is no extra learning and prepared tests allow teachers to monitor progress and evaluate learning.
Frank Conway is the founder of MoneyWhizz.
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