Financial literacy experts Bárbara Barroso and Pedro Braz emphasize the negative impact of misinformation on people’s economic decisions in Portugal. Barroso, CEO of Money Lab, defines financial misinformation as incorrect or misleading information that can lead to poor decision-making and mistrust of legitimate institutions. She highlights the vulnerability of the elderly, who may easily trust seemingly credible messages, resulting in scams.
Barroso stresses the importance of financial literacy as a defense against disinformation, noting that Portugal still faces significant challenges in this area. She critiques institutions for not providing clear, accessible communication, which exacerbates confusion.
Braz points out that misinformation can also originate from banks, where clients may receive biased advice. He warns against the belief in ‘magic formulas’ for wealth and advocates for critical thinking and information as tools to combat financial misinformation. While progress has been made in financial literacy in Portugal, many still struggle with basic finance concepts, with only 11% of the population showing high financial literacy, according to a Eurobarometer report.
