The CECA Sector Invests 2.58 Million Euros in Financial Education

The Executive Report on Financial Education 2023 includes more than 6,000 activities to navigate the financial environment at the user level and stay safe from fraud.

We are going to take out a mortgage. What do TIN and TAE mean? I am thinking of saving. How does inflation relate to my purchasing power and what does it mean if an investment product yields a 2% annual return when the IPC is 3%? I am going to buy a car in installments. What is more beneficial for me, considering my income and expense forecast: paying higher installments or opting for ‘comfortable monthly payments’ over a longer period?

These are just some of the questions about managing our purchasing ability that we are bound to encounter sooner or later in our lives. Far from being only for those who know about finance, these issues condition the money availability of each and every one of us. To put it plainly: knowing how to navigate at the user level in financial jargon will determine whether our money goes further or not. But where and with whom can we learn it?

Aware that being able to maneuver comfortably among these economic concepts is essential for the financial well-being of individuals and households, the entities associated with CECA (CaixaBank, Kutxabank, CajaSur Banco, ABANCA, Unicaja, Ibercaja Banco, Caixa Ontinyent, Colonya Pollença, Cecabank, and over thirty foundations) promote educational programs throughout the territory to foster financial education among all groups. In 2023 alone, they invested 2.58 million euros, twice as much as the previous year, making the CECA sector one of the largest investors in financial education in Spain. This ambitious proposal is detailed in the Executive Report on Financial Education 2023, which has driven more than 100 programs aimed at strengthening financial education in Spain, distributed across 6,362 activities.

A Subject Where There Is Much to Do

The initiative makes sense when we see that Spaniards are failing to grasp essential financial knowledge. This is the stark conclusion of the latest Financial Culture Monitor conducted by the European Commission, where our country ranks fourth from the bottom in managing seemingly simple concepts, such as whether we think twice before buying in installments or how much we should save each year to have a reasonable cushion by retirement. These are some of the test questions posed to citizens of all member countries, and only 19% of our compatriots passed with a good score, compared to nearly 40% in the Netherlands, Sweden, Denmark, and Estonia. On a worrying note, almost 1 in 3 respondents showed a low level of education in these matters.

Having a unclear understanding of how to manage money leaves a significant portion of the population in a state of financial vulnerability. The situation becomes more complicated with the rapid and progressive digitalization of our finances, the multitude of payment systems, cryptocurrencies, insurance, and increasingly sophisticated cybercriminals ready to attack us with fraud. Therefore, within the CECA sector’s financial education plan, nearly one-third of the budget (27.68%) focuses on savings, spending, and how to manage our budgets. Other topics addressed include sustainability, digitalization, and cybersecurity (19.78%); investment products and services (15.52%); banking products and services (13.43%); insurance (10.48%); and entrepreneurship and rural world (7.37%).

Above All, Educating Vulnerable Groups

The entities associated with CECA are aware of these needs and, through their programs, initiate initiatives aimed at different generations and groups with the goal of having a curriculum tailored to the demands of each group and addressing their needs more nimbly. Furthermore, in order to contribute to accelerating progress towards an inclusive economy, the CECA sector has been developing a wide range of measures for years to promote financial and digital education in society, particularly in rural areas and for groups at risk of exclusion.

Centennials (born at the turn of the century) and Generation Alpha (born in the early 2010s) are defined as digital natives. They navigate mobile devices like fish in water and are accustomed to digital payments. However, they are not immune to fraud. The speed and irreversibility of many of these transactions leave them vulnerable to the tricks of cybercriminals, often without realizing it until it is too late. To raise their awareness of both the possibilities and risks posed by these new technologies, 59% of the investment (1.51 million euros) was directed towards projects aimed at those under 25 years old.

The CECA sector understands that it is crucial for older individuals to improve their levels of digital literacy as well as their financial knowledge. Thus, in 2023, there was a recorded growth in investment in programs aimed at the senior group of over 24%. Additionally, activities directed at this group increased by over 48%, reaching more than 3.6 million beneficiaries participating in one of their more than 2,200 activities. Some of these are digital, but many are face-to-face initiatives spread across the entire territory.

Reducing the Social Gap in Finance

The inevitable digitalization offers clear advantages, but it also poses specific challenges for particularly vulnerable groups. With a steadfast commitment to not leaving anyone behind, the budget for promoting financial culture in 2023 has placed special focus on specific groups: individuals at risk of social exclusion (47%), followed by individuals with special needs (28.21%) and training programs for entrepreneurs (24.78%). In total, 1.34 million euros are dedicated to bringing financial education to citizens most likely to be left unprotected in the event of a financial setback, aiming to teach them to make sound financial decisions.

The sum of all this training empowers society as a whole. It allows for competent citizens in their finances, free to choose and aware of the implications of their decision-making. Because money – our money – is not a game.