Last Monday, October 7, we celebrated the 10th anniversary of Financial Education Day. The authorities promoting the Financial Education Plan—the Bank of Spain, the CNMV, and the Ministry of Economy, Trade and Business—as well as the Ministry of Education, once again demonstrated their firm commitment to financial training, in recognition of the need for citizens to have a solid foundation of knowledge that enables them to make informed, reasoned, and confident decisions in managing their own resources.
From the banking sector, in addition to collaborating with this Plan, we have redoubled our efforts to continue bringing financial education closer to citizens—more necessary than ever—through multiple programs and workshops aimed especially at young people and children, people with disabilities, and the elderly, as well as rural Spain. The objective is none other than to provide the necessary tools and basic economic concepts, as well as to supply some cybersecurity guidelines so that they can manage their personal finances confidently and securely in digital environments.
Financial education has become an essential skill for navigating today’s complex economic world. From understanding basic concepts such as expenses or income, to the ability to plan investments or manage debts, acquiring financial knowledge enables people to make informed decisions and helps avoid undesirable economic instability, as well as falling victim to an even more undesirable scam.
However, among the multiple levers that financial education offers, saving is a fundamental step toward economic well-being. Saving is a healthy financial practice, whether to protect oneself against possible unforeseen expenses or to achieve medium- or long-term goals, such as purchasing a home, children’s education, or simply to use it when necessary, with the primary objective of generating financial security and well-being over time.
The reasons for saving can be very varied. But if the objective is to obtain a return on that economic reserve, financial education is essential to evaluate the different possible options. Because they are also very varied, and it is advisable to evaluate them carefully, comparing needs and objectives.
The CNMV has noted on occasion the relationship between financial knowledge and saving and investment dynamics. And just a few days ago, the president of the CNMV, Rodrigo Buenaventura, highlighted the importance of developing a plan to encourage families to invest a greater portion of their savings in financial instruments such as investment and pension funds, bonds, and stocks.
According to the latest published data, Spanish families distribute the bulk of their financial savings as follows: 37% through deposits and cash, 30% in equity holdings in companies, 16% in investment funds, and another 13% in insurance and pension funds. Although in recent months the trend toward investment funds has been more favorable.
At the same time, the VIII Savings Barometer of the Inverco Observatory indicates a clear prevalence of conservative-profile savers, who account for more than half, while moderate savers represent 36% and the dynamic profile barely 8%, with a large proportion being young people under 29 years of age.
As the president of the CNMV noted, there are structural and also cultural factors behind this conservative behavior. But it is true that culture and financial education go hand in hand, and that finance is gaining interest among the population, thanks to everyone’s efforts to bring these concepts closer to society.
It is striking how the Inverco Observatory itself points out the low knowledge that savers have of different financial products and, in parallel, for example, that participants in investment funds, regardless of their profile, recognize that their returns are higher than those of more conservative products.
In short, financial education should not be limited to providing knowledge, but should help people use it to their benefit, not only so they can better manage their finances, but so they can obtain the best results, comparing options and evaluating objectives, autonomously, in an informed manner, and with confidence. And in this, as in everything, knowledge does take up space.
Carmen Rizo Medina, AEB advisor and head of Social Action
José Luis Martínez Campuzano, AEB Spokesperson
