Advice for Managing Finances During the Pandemic: The Funcas Educa 2020 Program Launches

Funcas launches the third edition of the financial education program, endowed with 3.025 million euros and adapted to the coronavirus crisis

Being informed about available measures and services, not rushing into decisions, and ensuring security are some of the recommendations

The entities adhered to the program are enhancing digitalization given the crucial role that telematics financial services play in the current situation

Funcas has initiated the 2020 call of the ‘Funcas Program to Stimulate Financial Education’ (Funcas Educa). This is the third edition of this collaborative program with the entities adhered to CECA, aimed at financing projects that help improve the level and quality of financial education for Spaniards, especially in the context marked by the coronavirus crisis.

The endowment amounts to 3.025 million euros and will contribute to enabling these entities, as well as their foundations, to develop new actions in the field of financial education and to strengthen their social work, also adapting to the current needs of the population.

With the social and economic life of citizens conditioned by the pandemic, some areas of action in the Funcas Educa Program acquire special relevance. In particular, in a situation of confinement or limited mobility for the population, even though offices remain open as they are considered an essential service, telematics financial services (digital and telephone) play a crucial role in managing the finances of families and businesses.

Diving deeper into digitalization and facilitating access for the most vulnerable groups to these channels is a primary objective of the Program, which will also continue the strategy developed by the entities in 2019.

The link between financial literacy and the digital environment has led Funcas to prepare a series of recommendations to help citizens better manage their finances during these challenging times marked by Covid-19:

1. Connect. Although bank offices are open as they provide essential public services, financial entities recommend utilizing remote (online and telephone) channels that have been reinforced and are fully operational. If you have not done so already, use the digital and telephone channels to contact your entity and/or service provider.
2. Be cautious of cybercriminals. With the increased use of digital channels, it is important to be alert to cybercriminals. Be wary of potential scams and phishing, a method that hackers or computer pirates use to deceive and obtain personal information such as passwords, credit card data, or bank account numbers, among others. Follow the security instructions provided by your entity.
3. Stay informed. Governments have made available a series of measures aimed at mitigating the effects of the crisis for citizens, small and medium enterprises (SMEs), and self-employed individuals. For the former, subsidies, guarantees, rental extensions, and prohibitions on energy supply cuts… For the latter, social security contribution moratoriums, loan delays and refinancing, or ERTEs, among others.
4. Take advantage of the facilities for accessing financial services offered by the entities. Financial entities, in coordination with the Bank of Spain, ensure access to financial services throughout the country and are facilitating their use. For example, entities integrated in CECA allow their clients to withdraw cash from any ATM at no cost while the state of alarm persists. They are also providing financing facilities such as a mortgage moratorium for primary residences for one year for clients affected by the economic impact of the coronavirus. Together with the financial sector, there are other strategic sectors, such as energy, offering facilities such as payment installments or advice.
5. Plan, calculate, and evaluate. If you have unforeseen expenses or your income has been reduced due to the coronavirus crisis and you need to incur debt, calculate the current and future costs. Consider interest rates, fees, and amortization deadlines.

Investment in Financial Education in 2019
CECA and Funcas have today published the second Report on Financial Education Activities. During 2019, CECA and its associated entities made a total investment of 4.5 million euros in financial education programs. Of this total, 3.45 million were contributed by the Funcas Educa program and the rest came from the self-financing of associated entities, which were distributed across 2,563 activities, reaching over 25 million beneficiaries.

The total investment has increased compared to the previous year by 14.85% due to the larger contribution from Funcas. Additionally, the number of beneficiaries has also notably grown, as a result of the boost in digital activities seeking greater efficiency and flexibility.

A trajectory linked to commitment to financial education

Since 2008, CECA has been part of the Financial Education Plan promoted by the Bank of Spain and the National Securities Market Commission (CNMV). In October 2019, both regulators awarded CECA and Funcas the ‘Finances for All’ prize for their Track Record in the Development of the Financial Education Plan for their commitment to spreading financial culture. This award, the most significant awarded in Spain, recognizes the joint efforts of our associates, credit entities, and their foundations in this area.