Financial education is a fundamental pillar for the well-being of society. It has been demonstrated that financial problems are one of the primary causes of stress for individuals. Adequate training in this area allows us to gain greater control over our financial lives: making better decisions, seizing opportunities that arise, and being better prepared to face challenges.
International studies emphasize the importance of financial education beginning at an early age, built upon two fundamental pillars: family and school. Parents are primarily interested in their children understanding how family finances work, learning the importance of saving, and being able to make reasoned and responsible financial decisions. Furthermore, financial education should be present in schools, taught by trained and motivated teachers who combine theory with practice, emphasizing the utility of understanding financial concepts throughout all stages of life. Providing financial education to children will enable them to become adults who make more informed decisions, incur fewer financial risks, and plan their future more effectively.
In Spain, the level of financial education is low. It is striking that this is the case and that it has not improved in recent years despite increased concern about financial matters due to the crisis. This deficit worries the financial sector because the ability to manage money and think critically is an indispensable requirement for any individual, significantly impacting both financial stability and overall economic performance. Countries with a higher level of financial literacy have shown greater resilience to crises and have recovered faster than others.
Spanish banks dedicate enormous efforts to improving financial education in society, with initiatives that benefited over 1.5 million people last year alone. Part of this commitment is reflected in their digital applications, as part of a digital transformation process requested by their clients. The financial sector leverages digitalization and technology to increase access to financial education for all social groups. However, digitalization also poses challenges and risks that should not be underestimated. Constant support is needed from both the banking sector and authorities to foster digital literacy and financial education across all social groups, so that, through the combination of both, these risks can be mitigated.
For five years, the AEB Foundation and Junior Achievement have been promoting the “Your Finances, Your Future” program, a significant benchmark in financial education in schools. In these five editions, more than 35,800 secondary school students across Spain have benefited from the work of 2,700 volunteer bank employees. The support and involvement of the collaborating banks have been key to the program’s success, with 95% of students and 99% of volunteers wanting to repeat the experience. Scientifically based, the program also stimulates the development of young people’s non-cognitive skills, increasing their perseverance and effort in studies, improving impulse control, and teaching them to defer gratification after receiving the training.
However, we cannot be satisfied. The efforts of banks and authorities – through the Financial Education Plan – face the reality of the numbers. Progress has been made, but we are still far from reaching desirable levels. Beyond the specific measures we all take, a public debate is necessary to make educational authorities and families more aware of the problem of the lack of financial education in Spain and to react accordingly. Financial training is a necessity, not an option.
Conchita Morán Sangochian, AEB Sustainability Department, and José Luis Martínez Campuzano, AEB Spokesperson.
