Six proposals to improve financial education in Spain

EFPA Spain has prepared a document that contains proposals to improve financial education in Spain, based on the experience accumulated by the association with its financial education program, through which it has trained more than 17,000 people belonging to more than 450 associations, professional associations and public institutions, thanks to the collaboration of more than 700 members certified by EFPA who participated as volunteers.

A compulsory financial training program at all stages of training

The activation of a financial training development program at all stages of education, compulsory and non-compulsory, which is very basic in primary education, progressing to more advanced development programs in secondary and high school, even up to university education and vocational training.

Planning for specific financial education modules should be phased according to school stage, starting with the inclusion of learning some basic concepts in the primary and secondary education section, such as savings and lending. ‘budgeting, based on planned spending. and income, to move to a much more specific program in the pre-university and university fields, regardless of the educational path chosen by each student. From the bac, this type of training is essential because it is when the student begins to be interested in the practical application of financial theory and the course of the subjects can focus on knowledge focused on preparing the world. of work and personnel, how to explain the keys to preparing the income tax return, basic information on the operation of savings and investment products …

Promote financial education within the company

One of the proposals to improve financial education and culture among all sections of the population is to lay the groundwork for companies to promote training in this area among their own workers, by implementing tax breaks or ‘other specific aids so that companies encourage the development of financial education courses in their workforce and that this model is exportable to other smaller companies, where resources are more limited. It is a means of promoting financial education among heterogeneous groups of professionals, who can receive specific training adapted to their level of knowledge and their personal needs.

A specific plan to educate about finance through public media and social networks

The implementation of a specific plan promoted by the Public Administrations, with the support of private companies, to promote good financial practices on Social Networks and in public communication media. In the first case, they can become an ideal tool to reach a target of users of the younger generations, which must be accompanied by the activation of a series of procedures to avoid the proliferation of other unauthenticated profiles that offer nature advice without the necessary training and knowledge.

Publicize and promote the public retirement account

The volunteers of the EFPA Spain program propose to update and adapt the Social Security calculator to current circumstances, which allows to know an approximation of the amount of the public pension to be received for taxpayers, depending on the number of years worked and the regulatory basis. The companies themselves and the associations and associations of employers which bring together different groups of professionals should activate mechanisms to facilitate the access of their workers to this tool and to other similar tools for the calculation of the public pension. . The association proposes to implement improvements to these tools, which broaden the projection of retirement in the coming decades, which take into account the sustainability factor, as well as the effect of inflation, which in the long term can also be a clearly distorting element. . . .

Involve FinTech and other entities to reach young audiences

Governments and regulators and supervisors, as well as large entities, have worked in recent years to promote programs and actions focused on promoting financial education on different fronts. The partners of EFPA Spain propose to involve other associations and organizations in these plans, as well as entities with a clear technological component, such as Fintech and Insurtech, financial technology companies born with the aim of providing users with the tools adequate for an optimal management of your savings, as well as a valuation of your investments, this is why they present themselves as a fundamental actor to be the ally of the improvement of financial education and their capillarity and accessibility for reach a wide spectrum of citizens.

Give more importance to behavioral finance among professionals

Financial advisers and all professionals who sit down with a client to offer information, advice or guidance on financial products and investment strategies must understand how clients’ psychological, cultural and social factors affect their economic behavior. and when making savings and investment decisions, such as taking into account that fear, euphoria or public opinion itself can condition financial decision making at any time.

Therefore, it is necessary that industry professionals are trained in the field of “behavioral finance”, to understand and know how to transmit to clients the opportunity cost of any financial decision, so it is advisable to promote this field. knowledge in all diplomas, programs, masters and courses targeted for professionals in the financial sector. In addition, it is also important that professionals in the sector make an additional effort to convey to the end customer the scope of sustainable finance, which has become a priority issue in the European Union with the approval of the “Action plan: financing the sustainable development “.

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