The Financial Education of Youth: Towards Conscious and Secure Management of Their Finances

Digitalization has been revolutionizing all sectors for years, including the economic sector, where new technologies are prominent in the commercial activities of companies, but also in personal finance.

This revolution has broadened access to financial services, but it has also highlighted that understanding financial concepts and managing digital tools have become essential for operating responsibly. Among other issues, this necessitates paying special attention to youth, a developing and growing group that is vulnerable to the risks associated with operating in this environment.

Young people, as digital natives, adopt technological advances naturally, which is reflected in their financial management. For example: they maintain a 100% digital relationship with their bank, shop online, and pay with their phone or smartwatch. However, in this environment, it is crucial to also understand the risks involved with using technology and to acquire the necessary skills to know how to act against fraud and cyber scams.

According to data from the Cybersecurity and Digital Channels Usage Survey prepared by CECA in collaboration with SigmaDos, 41% of those under 30 claim to have extensive knowledge in cybersecurity, yet only 3 out of 10 pay attention to the informative communications and recommendations sent by their institution on this topic. These figures reaffirm the need to equip new generations with digital skills necessary for effectively managing their personal finances.

In light of this situation, on October 7, the Financial Education Day is celebrated, and under the framework of its tenth anniversary, various activities will be promoted under the slogan “Digital Finances: Learn, Innovate, Advance.” The initiative, promoted by the Bank of Spain, the CNMV, and the Ministry of Economy, Trade, and Enterprise, aims to advance the financial culture of the population and is supported each year by CECA, its associated entities (CaixaBank, Kutxabank and Cajasur Banco, ABANCA, Unicaja, Ibercaja Banco, Caixa Ontinyent, Colonya Pollença, and Cecabank) and Funcas, reaffirming its commitment to promoting accessible financial education for all.

For the CECA sector, financial education is an absolute priority, positioning it as one of the largest investors in financial education in Spain, with an allocation of nearly 18 million euros over the last six years. In 2023, it allocated more than 2.58 million euros to over a hundred programs, reaching 34 million people. Reflecting the sector’s commitment to new generations, nearly 60% of this investment was directed towards programs for children and youth.

Additionally, Funcas has made public the new Survey on Financial Culture and Education 2024, coordinated by Elisa Chuliá and María Miyar, a study aimed at measuring the financial knowledge of the population and detecting vulnerabilities, in order to promote effective strategies that enhance the financial competencies of individuals.