A major aim of psychology education is to train students in psychological literacy -- the ability to apply psychological knowledge to everyday activities. In this paper we explore how well this has been achieved in recent years. As a result of COVID-19 the focus of teaching in recent months has inevitably been on developing online methods of teaching and attempts to develop psychological literacy have of necessity received less attention. However, we argue that the developments enforced by COVID-19 actually open up a range of new possibilities and that psychological literacy can benefit from these changes. In particular, we suggest that much of the transmission of psychological knowledge can continue to take place online and that universities should become places where the focus is on the application of that knowledge.