How financially literate are Spaniards?
46% of the population admits that their financial knowledge is low or very low, according to the Financial Competencies Survey by the Bank of Spain and the CNMV. This is, without a doubt, a concerning figure. However, perhaps even more disturbing are the results of the OECD’s PISA Report on our children’s financial knowledge. Spain ranks eleventh out of the fifteen countries analyzed in financial literacy, and 15% of students lack even the most basic financial knowledge.
To what do you attribute this?
It is difficult to identify a single culprit. What is clear to me is that rectifying these results must be a goal for society as a whole, which requires families and educational authorities to get decisively involved.
What should be given greater attention?
It is important that from a young age we are aware of the cost of things, that we learn to differentiate between wants and needs, and that we get used to thinking about saving. These are basic notions of financial literacy that should be conveyed at home and taught at school.
Should citizens be trained to detect cyber scams?
More than 25% of cyberattacks are carried out through malware, a program or code that can damage and take operational control of our computers, IT systems, networks, tablets, and mobile phones. The ultimate intention is to steal money, although this may involve encrypting or deleting data and spying on user activity. AEB has launched an awareness campaign to prevent the installation of malware on devices. Leading cybersecurity experts from banks, the National Police, the Civil Guard, and Incibe offer advice in a video, which features stories based on real situations and can be viewed at www.aebanca.es. It is often thought that cyberattacks are things that happen to others, but today we can all be victims of a cyber scam. Prudence and common sense are our best allies in fighting cybercriminals, as in many cases they rely on our most trusting side to perpetrate their attacks.
How do you assess the financial health of Spaniards?
The health crisis we are overcoming will also have consequences for families’ savings and investment culture. After forcing us to save when it was not possible to travel or consume outside the home, it is likely that the current uncertainty will cause changes in how we manage our savings. There are two reasons: we are not sure when this difficult period will end, and the experience has been so harsh that we want to redouble our efforts to feel more protected in the future. The crisis has accentuated families’ inclination to purchase housing, the main asset decision for households, which reflects the good performance of the mortgage market. Beyond real estate assets, households’ net financial wealth increased by almost 9% in the last year, reaching 1.5 times GDP.
46% of the population admits that their financial knowledge is low or very low.
What percentage of our salary should we allocate to savings?
There is no specific and universal answer to this question. Each person makes their decisions freely based on their particular situation and future prospects. However, it is important to follow some guidelines to successfully manage our money. Financial literacy, especially if acquired at an early age, and good professional advice tailored to our saver profile, can undoubtedly help us achieve this.
Where should small investors invest their family savings?
The concept of saving is very subjective. In Spain, housing is the main asset decision for families, a behavior that goes beyond a purely financial decision. In this country of homeowners, the population’s commitment to housing as the primary form of saving and investment is evident. Investment in our own and our children’s training and education is also important. Financial assets best reflect the three principles of saving: liquidity, consistency, and profitability. In Spain, families’ net financial assets represent 147% of GDP, with an 11% increase in 2020. Part of this increase is explained by the purchase of financial assets following the involuntary increase in savings due to lockdown.
It is important that the public sector promotes a culture of saving and provides certainty to savers.
Are pension plans still attractive?
Saving means not spending today so that we can do so in the future, either because we have a specific consumption goal or the purpose of preparing for needs that may arise later, thus facing uncertainty more comfortably. It is important that the public sector promotes a culture of saving and provides certainty to savers, with each person deciding how it will be materialized. In the specific case of pension plans, the percentage of financial savings in Spain is much lower than the European average.
Will coins and banknotes disappear?
Cash is one of the many payment options available to consumers, and banks are committed to offering all available options and letting consumers choose. Consumers highly value the opinions of third parties, much more than companies’ commercial strategies, according to a KPMG survey.
Interview with the AEB spokesperson conducted by Gemma Marti.
