- The lack of financial education generates emotional, family and social imbalance
- One in two people recognizes that their financial knowledge is basic
- The segment of the population between 25 and 34 years old is the most affected by financial stress
Just started the school year, we Spaniards already have a pending subject: financial education.
We have not received education in personal finances, from day to day, it does not matter if you are an engineer, economist, plumber or lawyer, we do not have the education to make the best decisions with our money..
According to the PISA Report of the OECD, carried out on 15-year-old students, one in four Spanish adolescents has no notions about finances; and more than half of the citizens acknowledge that they do not have basic knowledge, nor do they know how to distinguish between the CPI or the GDP.” Financial education, as a subject of its own, does not exist in the Secondary school curriculum, so (for now) it is integrated in a more dispersed manner in other economics subjects related to entrepreneurship. This is not an isolated problem : there are many countries that struggle against the financial carelessness of their citizens. In the most advanced countries, especially the Nordic ones, the message of caution and warning from international organizations has already caught on and schools are beginning to dedicate resources and efforts to teaching basic finances in Primary and Secondary, through games and case studies”, according to statements by Jose Antonio Herce, doctor and professor of Economics at the Complutense University of Madrid (UCM) for El Pais.
Why is it important to improve our financial education?
Financial education is the basis of financial well-being, which not only has an effect on our economic stability, but also on our emotional, family and social balance.
The Personal Finance Program has an impact on this point, a pioneering training program in financial education. This program is carried out online, with the help of experts who guide you and answer all your questions. A proven methodology with which to improve control of the domestic economy, plan income and expenses, manage debt or save and increase your income, among other aspects.
The acquisition of this knowledge and, with it, the improvement of financial health avoids the serious consequences that a lack of financial well-being has, among others:
- Financial pressure is the number one cause of stress outside of work.
- Poor financial health also affects the work environment, as one in six workers acknowledges that they suffer from stress caused by negative economic situations and that this harms their productivity.
- There is a direct correlation between the lack of financial well-being and the risk of social exclusion.
- The lack of financial education hinders the economic development of many countries or regions.
- Studies confirm that financial stress affects most couples1
Financial problems and mental health:
But the problem goes much further, financial problemss are found at the origin of many diseases, fundamentally related to mental health.
According to the 360 Wellbeing Survey 2019: Well and Beyond (Cigna), personal finances, high workload and personal health are the main sources of stress for people (accentuated by the COVID-19 pandemic). Lacking financial well-being not only produces stress, but also anxiety, depression and even lead to physical problems and illnesses.
According to data from the Personal Finance Program, the population sector that is between 25 and 34 years old is the most affected by financial stress. And within this age segment, women are the ones who feel the greatest pressure when it comes to managing their money. However, this is a problem that affects all ages in one way or another.
Financial problems are usually associated with mental ones and, on many occasions, they lead us into a spiral from which it is very difficult to get out”. And this expert recalls that “stress, anxiety and other possible pathologies that are associated with economic problems affect both adults and children and, therefore, the daily life of families.”
Improve financial education from technology
In addition to incorporating financial education into educational curricula from an early age, Advocates relying on technology as a tool to improve the training of society in this area. With this objective, the company has designed a training program based on an interactive system and supported by experts. A proven methodology with which to improve control of the domestic economy, plan income and expenses, manage debt or save and increase your income, among other aspects.
Personal Finance Program makes it possible for nine out of ten people to improve their income and savings. In addition, eight out of ten reduce their debt and even pay it off, and seven out of ten improve their control over their money. “We have a responsibility as a society to promote financial education at all levels. Improving our financial knowledge results in more income and, therefore, in greater well-being. We are very satisfied with the positive impact that the Program is having, which has made it possible for thousands of people, helped by experts, to learn to control their finances, manage their debts strategically and even achieve savings that were impossible before.