If our financial education had been broader, perhaps we would have saved ourselves in eleven-rod shirts such as the signing of ground clauses, the purchase of preferred shares, credit cards with undercover commissions or simply with little or no performance for our purchases. Although it is true that perhaps we would not have gotten rid of certain scrubs, because the clarity and accessibility of these financial products were never their forte. However, surely we would have approached the study of our finances with a little less uneasiness, because we would have understood them more.
44.8% of Spanish entrepreneurs have a basic financial instruction
The truth is that Spanish entrepreneurs do not show enviable financial instruction. In this sense, 44.8% of employed persons have a basic financial education. But it is not possible to put your hands to the head because our knowledge, although quite low, is superior to that of powers like the United States and Japan.
At least those are the conclusions drawn by a study prepared by Marco Trombetta, of the IE Business School, published by the Foundation of Savings Banks (Funcas).
However, it should be noted that many of our most recent entrepreneurs are not by vocation, but have simply opted for self-employment as a way out of an unemployment situation caused by the crisis.
The more developed markets offer more accessible and clear products
But it should be borne in mind that sometimes the fault is not for the financial lack of the consumer, but for a poorly developed market. This is suggested by Thomas Piketty ” Capital in the 21st Century “. This volume is theorized with the idea that the most developed markets offer customers more complex but more accessible products, and explained with transparency. In fact, this clarity allows these products to be contracted by a larger percentage of the population, which, in turn, helps reduce inequality.
Financial education reduces income inequality in society
Although financial education also affects this aspect. In this sense, knowledge of disciplines such as mathematics and related to economics is necessary. Not surprisingly, it is considered that if both factors coincided – a mature market and a financial culture – income inequality would surely be reduced and citizens would know how to make their savings profitable.
Those who have a culture in finance save 11.5% more
To make matters worse, people with a financial education save 11.5% more. In addition, those countries with a higher proportion of financially literate people reach higher levels of savings and income. Therefore, if there was still a reluctant in the room about the benefits of financial education, he was sure to ‘unsubscribe’.
Although it is true that on many occasions we know how to save, but we persevere in a bad practice. The phenomenon is not new, it has a name and, of course, it doesn’t just happen to us. They are called behavioral biases; that is, we buy compulsively knowing that it is advisable to compare and not get carried away by a compulsive purchase.
The three principles of saving: organization, responsibility and prevention
According to experts, we must respect three principles if we do not want to incur this behavioral bias: organization, responsibility and prevention. In this way, a good organization is vital to keep our personal finances or those of our business healthy.
Therefore, we must inventory all our expenses and income so as not to get our feet out of the pot. The most catastrophic thing that can happen to us is to spend more than we enter, as we will generate a deficit that is often avoidable.
Regarding liability, this entails certain precautions when handling our cards: change passwords regularly or not lose sight of them when making a payment. In line with this we find the need to choose any financial product or service (such as an instant credit online), always assessing if it is really necessary, and how we will pay it. A contingency that we cannot leave at random given its importance.
And one last aspect is prevention, the importance of ensuring our retirement or eventualities through the hiring of life insurance.
A fast loan comparator without Asnef that teaches financial education
The truth is that from our comparator of fast loans and bank cards we have been trying to instill financial notions to our clients for some time. And we are authors of a glossary of recurring terminology in banking matters that on more than one occasion will have raised doubts.
Not surprisingly, many people are unaware of the differences between credit and debit cards or how the holder of a bank account is distinguished from an authorized one.
All this embodies a basic financial training that we must overcome to start taking advantage of our money and know what kind of financial product suits our savings. Only in this way will we be able to compare, choose accordingly and avoid blunders.
In addition, at Huckleberry Finn we are concerned with providing truthful and clear information about our online loans without paperwork: conditions, applicable interest, repayment term and even a simulator so that we know specifically how much the amount of the requested credit will amount once we add Applicable interests
In sum, we seek information and try not to leave the client helpless among a jargon of financial concepts. Again, if you have an online credit in perspective you already know where to compare. Do not forget to take a look at what the market offers before hiring, embodies one of the basic principles of the saver.