What's the key to building wealth?

Gulf News

29-04-2025

Imagine waking up one morning to find your bank account drained—not by fraud, but by your own decisions. Credit card interest, impulsive investments, an ill-advised loan, or even a paycheck that barely stretches to cover the basics. This isn't some dystopian horror story; it's the daily reality for millions worldwide.
Financial illiteracy isn't just an inconvenience—it's an epidemic. According to Standard & Poor's, only 33 per cent of adults globally are financially literate. That means two-thirds of the world is navigating a financial jungle without a map, making choices that could lead to ruin rather than security. And when an emergency strikes? Nearly half of millennials have less than $1,000 (Dh3,670) saved. The consequences of poor financial decisions aren't just individual—they ripple across economies, fuelling debt crises, widening wealth gaps, and fostering generations trapped in financial struggle.
But just when it seems bleak, the plot takes a twist. Enter fintech.
Why the digital revolution needs guardrails
Technology has changed everything. Just as GPS replaced paper maps, smartphone apps have transformed how we manage money. Today, a stock trade is as effortless as ordering coffee. Investment apps boast a staggering 117 million users in 2023, and in the UAE, trading activity surged 75 per cent year-on-year, outpacing markets like Spain and Singapore.
But here's the kicker—accessibility without understanding is a recipe for disaster. The same apps that democratise investing also open doors to reckless speculation. We've all seen the stories—traders betting big on meme stocks, crypto bubbles bursting overnight, life savings lost in minutes. Without financial education, these tools become weapons of self-destruction.
The hard truth? Most people lack even the most rudimentary financial skills. A global survey by Standard & Poor's tested four basic principles: inflation, risk diversification, numeracy, and compound interest. To be considered financially literate, respondents needed to answer just three of the four correctly. Only one-third of adults worldwide passed.
In the UAE, the results were slightly better at 38 per cent, but still lag behind financial powerhouses like the US and Japan, where over half of adults have a solid grasp of money management.
And yet, we expect people to make intelligent financial choices—buy a house, invest wisely, prepare for retirement—without ever teaching them how.
But if we flip the script, financial literacy becomes one of the most powerful drivers of stability, growth, and prosperity.
This is why governments and businesses need to step in. In the UAE, initiatives like the New Economy Academy and Ghaya programme are equipping people with the skills to manage their money intelligently. The New Economy Academy, a governmental entity under the UAE Prime Minister's Office, is a leading training and educational centre dedicated to financial literacy and is now nurturing a new generation of financially savvy Emiratis.
The Ghaya programme, which is supported by ADGM Academy and the London Institute of Banking Finance, has been working with citizens across Abu Dhabi since 2020. In addition, National Bonds has partnered with education specialists Taaleem to introduce financial literacy concepts to students in its 12 schools. The Kids Finance Initiative has also been developing programmes for schools, universities and private businesses.
Schools are integrating financial education into curriculums, and investment-trading platforms such as Capital.com are embedding educational tools directly into their trading platforms. Because knowledge isn't just power—it's also profit.
At Capital.com, we are already seeing a gradual evolution in trading behaviour across regions. As traders begin to understand longer-term macroeconomic trends and market drivers, there has been a shift away from speculative assets such as alt-coins and so-called meme stocks towards traditional commodities and index trackers. To support this evolution further, we provide a comprehensive suite of educational resources designed to help users at every level of their financial journey. Our platform provides educational resources and tools, including demo accounts and AI-driven insights, to help users make informed investment decisions and develop confidence.
Financial literacy is not optional
If you take nothing else from this, remember: financial literacy is not optional. It's the difference between thriving and barely surviving. Between building wealth and drowning in debt. Between taking control of your future and becoming another statistic.
As we continue to support informed investing and trading, as well as build a new generation of empowered retail investors, we will see more individuals able to contribute to the UAE's collective prosperity.
By fostering financial literacy, we're not just creating better investors and savers—we're building a future where more people can achieve financial independence and long-term stability. The journey to financial empowerment starts with knowledge— we have to make sure no one has to navigate it alone.