Why is it important to keep talking about financial education?

Why is Financial Education Day being celebrated this week? Not only that, but also...!

The promotion of financial education among school-age children and young people is recognised, notably by the OECD, as one of the most effective ways of reaching an entire generation that wants to acquire a financial culture that will enable them, as young people and future adults, to develop rational behaviours and attitudes towards economic and financial issues.

In June 2013, I co-founded AESS – Associação Economia Solidária Sustentável (Sustainable Solidarity Economy Association), where I develop and promote a Financial Education programme through workshops, courses, presentations and other forms of dissemination of the topic. I believed and continue to believe that this is the way to create financially healthy citizens.

But what exactly is Financial Education?

Financial education covers a range of basic information on how to better manage your money. It involves tools for drawing up and controlling your personal or family budget – how to buy, save and invest and, in general, how to spend your money wisely in order to achieve your goals in a rational and balanced way.

And who is interested in or should be targeted by financial education?

• Às crianças e jovens porque serão eles os futuros adultos e devem iniciar o processo de gestão do dinheiro o mais cedo possível. Para esta população a AESS desonvolveu programas específicos e lançou em 2015 o livro “Curso de como Gerir o Meu Dinheiro” https://www.youtube.com/watch?v=nrzLWZQhKJs&t=1s
• Adults who need support to prevent debt. This population can also benefit from tools that enable them to improve their money management, if they use them systematically. Financial education can also ‘remedy’ some debt situations and help prevent a ‘relapse’.
• Financial education is also of interest to companies because the phenomenon of financial presenteeism exists, is real, and affects the productivity of company employees. In February of this year, AESS presented this topic at the conference ‘Healthy Companies: How to inspire people and organisations.’ https://www.youtube.com/watch?v=41Q35bgw8uY
• Financial education is also important for senior citizens, who increasingly need to manage low incomes and consequently change their consumption and money management habits.
• AESS is an organisation that promotes social inclusion, which is why its Financial Education programmes have also been developed for people with special needs and at risk of social exclusion.

In summary: Financial Education is a cross-cutting issue for society as a whole and should be given the importance it deserves, because having a healthy financial life means turning money into an ally. To achieve this, as with everything in life, you need to make a plan, in this case a financial plan or budget. We can divide this plan into three main parts: expenses/debts, dreams/goals, savings/investments.

After more than four years, I still believe that financial education is a necessity in everyone's life!