On average, young adults (15–35-year-olds) have more advanced financial literacy skills than other age groups. This is partially connected to their more advanced digital skills. However, digital literacy alone is not the key to successful management of finances: the use of quick mobile apps may make it more difficult to understand spending and one’s personal finances, as the presence of cash in everyday life decreases. This is the conclusion of OP’s and HundrED’s report Spotlight on Financial Skills for the Youth, published today.
Young people are increasingly interested in, say, investing. When increasing young people’s financial literacy, one should especially focus on planning personal finances, the report states. In particular, immigrant families need support with financial literacy, it would be important to talk about financial issues to young people in places that they frequent, and especially girls’ interest for financial issues should be increased. Teaching financial literacy requires large-scale stakeholder cooperation, too.
-Managing personal finances is an important life skill. Skills acquired when being young reflect in personal financial skills when being adult. Because financial literacy increases equality and improves individuals’ abilities to fulfil their dreams, we wanted to find ways to make learning financial literacy truly inspiring. This year, OP has taught financial literacy to over 70,000 young people, and the report’s results are important information to us for further development of our work, says Kati Ihamäki, director in charge of brands and corporate social responsibility at OP.
Financial literacy through education innovations and practical learning
In the report, HundrED and OP highlight a number of innovative and practical solutions for teaching financial literacy to young people in their everyday life. Out of 84 suggestions, the 10 best innovations were selected for the report. They enable young people to manage their personal finances better.
-It is a positive sign that young people want to understand their spending and increase their financial literacy. Personal finances and financial literacy are a big part of life, and financial literacy is not only learned in schools. There are great new financial education innovations being developed continuously in Finland and around the world. They have the potential to raise young people’s financial literacy level, says Lasse Leponiemi, CEO of HundrED.
Download the entire report here.