The Perception About Financial Education Among Students at the University of Extremadura

Introduction

There is great concern in many countries about the level of Financial Education (FE) among the public since this is a key factor in creating financial stability and economic progress. Good FE results in personal financial autonomy and independence. At a collective level, it fosters social inclusion and increases the financial quality of life of families. For this reason, FE is also seen as a lever for economic growth, as it helps to lessen the negative consequences of abusive practices like financial fraud and adverse economic situations such as those resulting from the last international financial crisis (PwC Foundation & Contea Foundation, 2019).

Concern about financial literacy has increased as a consequence of the financial crisis experienced over the past decade. However, it should be noted that previous studies, such as that carried out by Braunstein and Welch (2002), had already documented the lack of basic financial literacy among the U.S. population. As a result, in 2005 the Organization for Economic Cooperation and Development (OECD) established a series of recommendations and best practices to help its member states implement policies to promote financial literacy, defined by this institution as “the process by which financial consumers or investors improve their understanding of financial products, concepts and risks and, through information, education and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, make informed decisions, know where to turn for help and take any effective action to improve their financial well-being” (OECD, 2005, p. 21).

The OECD's work was reinforced by the creation of the International Network of FE (INFE) in 2008. Its initial objectives included the development of research and comparative analyses between countries, the sharing of experiences, the design of educational policies, etc. Currently, its working groups are focused on the following key areas of action: i) further standard setting, implementation, and evaluation; ii) analysis of the impact of digitalisation on FE; ii) the impact of the ageing population and the financial needs of the elderly (Atkinson & Messy, 2013; de Clercq, 2019).

Additionally, in 2008, an FE Plan was launched in Spain, led by the Bank of Spain and the National Securities Market Commission (CNMV in Spanish) under the slogan “Finance for All”. This Plan is currently in its fourth phase, which covers the period from 2022 to 2025, and the Ministry of Economic Affairs and Digital Transformation has recently joined as an active promoter.

Although it is a public initiative, numerous financial institutions have also been involved as collaborating entities. For example, among others, we can mention Banco Santander, which supports and gives financial backing for the project “Finances for Mortals” run since 2012 by the Foundation of the University of Cantabria for the Study and Research of the Financial Sector. This project is aimed at increasing financial literacy among young people, in rural environments, as well as among social entrepreneurs and the most vulnerable groups. The ultimate goal is for all these people to be able to understand basic financial concepts and, therefore, properly manage their daily finances and make sound financial decisions.

Similarly, some initiatives have emerged from the strictly private sector, even prior to the implementation of the national coordinated strategy. This is the case for the Edufinet project, which was launched at the end of 2007. Its initial objective was the preparation of an educational guide to raise awareness about the most relevant aspects of the financial system, as well as its fundamental products and services (Domínguez, 2013).