A Safe Investment for Society’s Development

Financial education contributes to the economic security of citizens and, by extension, to the stability of the financial system and the progress of society

Throughout life, there are many financial decisions that individuals and families must make. Ultimately, it is about managing finite economic resources in the most efficient way possible, in order to maximize our present and future wealth and, at the same time, be able to face adverse economic situations when they arise. The accuracy of these decisions largely depends on the level of financial education of the population. For example, a study by Funcas on the financial competencies of citizens shows that the higher the level of financial literacy, the greater the likelihood that a person will have a pension plan, possess some investment fund, and have saved in the last year, and the lower the likelihood of financing purchases with personal loans.

Clearly, financial education contributes to the economic security of citizens and, by extension, to the stability of the financial system and the progress of society. It is, therefore, a collective asset that we all must help build and which requires commitment and constant effort. Let us take into account that, according to the Family Savings Observatory, 44% of the Spanish population does not understand basic economic concepts. Furthermore, the latest report from the European Central Bank places Spain in tenth position in the ranking of eurozone countries in financial capabilities.

While much remains to be done, it is also true that the steps taken in recent years are significant. Therefore, it is essential to continue strengthening the public-private collaboration initiated under the National Financial Education Plan of the Ministry of Economic Affairs, the Banco de España, and the CNMV, where year after year, banking entities play a key role. Additionally, in a context of increasing digitalization of finance, it is a priority to broaden the training spectrum to include digital training as one of the pending subjects in the face of the unstoppable advance of the digital divide. It should not be forgotten that the European Commission aims for 80% of citizens to have basic digital knowledge by 2030. Today, in Spain, this percentage stands at 64%.

In this context, the push for financial education programs by the banking sector has increasingly complemented initiatives for training in digital knowledge. This combined effort is highlighted in initiatives such as the launch by the banking associations CECA, AEB, and Unacc of the web platform “Aula Financiera y Digital”, exactly one year ago, and recently awarded the Finanzas para Todos prize from the National Financial Education Plan. It is a unique project in Europe that provides citizens with access to all the training initiatives of credit institutions in the financial and digital sectors. Its contents are classified into 14 areas of interest, including digitalization, cybersecurity, savings, or investments, as well as in 7 differentiated groups, including people over 65 years old and individuals with disabilities, youth and adolescents, and people at risk of exclusion.

After its first year of operation, the platform gives us an indication of which issues generate the most interest among the population. Thus, the training initiatives related to savings registered 44% of the inquiries, while topics linked to digitalization accounted for one in four visits. By demographics, options aimed at adolescents and young people have motivated three out of four inquiries. This data is encouraging, as the OECD recognizes that individuals who receive financial education at an early age are better equipped to manage their financial resources throughout their lives. It is also noteworthy that, due to the educational offerings of the platform, over 245,000 clients over 65 have received financial and digital training.

Undoubtedly, initiatives like these demonstrate, once again, the commitment of credit institutions to the urgent need to improve understanding of the financial reality in our country. This is a more structural than sectorial challenge, the resolution of which transcends the capacity for action of banks and must be approached through collective collaboration. Not only due to its significance and contribution to the progress of individuals and society, but also because of the complexity of the factors that intervene in the financial dynamics of our country. Among these are the omnipresent digitalization, the precarious employment of our youth, the aging population, the vulnerability of a productive fabric of micro-companies, and the increasing volatility of markets. Let us continue learning and advancing together.