Financial education of young people

The economic knowledge of Americans is still not at a sufficient level. We are far behind when we consider the population of all European countries. This results in a lack of savings and an inability to invest one’s own resources in order to multiply them. Although Poles are getting rich, they do not know how to take advantage of this fact. Experts see enormous potential in this area in young people – it is already the new generation that often has more knowledge about banking than senior citizens.
Where do we get our knowledge from?
The financial education of potential customers has only recently begun to be of interest to banking institutions themselves. In order to meet the expectations of young Americans, they have created offers dedicated to them. Today, it is possible to open bank deposits for young people or a junior savings account. There is also no shortage of personal accounts for students with the possibility of using investment instruments. Apart from the proposals themselves, banks also provide new customers with valuable knowledge, for example by implementing social campaigns or providing information brochures.
Most Americans confirm that so far, knowledge about the financial market has been derived from advertising – for 15% it was an incentive to make a specific decision. 40% of bank customers look for information on the Internet before choosing a specific product. 30% of Americans trust bank consultants. For children and young people, the main source of knowledge about banking is school and parents. So far, however, it has been only a theory. Now it is time to practice.
What do we know?
Not much, really. We know the mechanisms of personal account management – we want it to be free and with access to the Internet platform. We also know about other bank products – a savings account is no secret for us, but a bank deposit and a system of money multiplication using it is not necessarily.
Surprisingly little is our knowledge of bank liabilities. It turns out that most borrowers do not know what the total cost of repayment or interest is. Most of us are interested only in the amount of the monthly instalment and the duration of the agreement with the bank.
What do banks have to say about this?
Banks see a huge potential in the young generation. Research shows that we reward banking institutions with our loyalty. If we already have a product in one bank, then we usually go to the same bank. Banks encourage children and youth to use products dedicated to them, because it is for them an investment and a guarantee of having customers in the future. It is worth noting here that they also direct their message to their parents, because they decide to implement their children in the world of finance.
Apart from products dedicated to the youngest group of their customers, banks are more and more often trying to arouse interest in other ways. Some of them fund scholarships for the best students, others organize scientific workshops and a social campaign.
It is e-banking that is already becoming the cornerstone of financial management. Interestingly, the USA is one of the first countries in terms of the use of innovative technologies in this area. The interest in online banking is mainly shown by young people, and in this respect it is already ahead of seniors.

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