Three Recommendation To Promote Financial Education

 


Not knowing how to manage money or not having a culture of saving are some examples of how many Peruvians do not manage their finances correctly.

One of the issues that greatly affect our society is the lack financial education. In fact, in Peru, this problem is reflected in a study carried out by the Superintendency of Banking and Insurance (SBS), which indicates that less than 5% of the Peruvian population has financial knowledge.

Ramiro Hidalgo, professor of the CERTUS Finance career, affirms that not knowing how to manage money or not having a culture of savings are some of the main examples of how many Peruvians do not manage their finances correctly.

Thus, financial education is not only relevant because it allows strengthening the management of people's personal finances, but also because it allows them to learn to plan. In this context, there are three recommendations to promote financial education.

1. Teach the principles of financial education from an early age

The latest results of the PISA test place Peru in the penultimate position in financial education, which shows that schools do not provide much knowledge about it. For this reason, Hidalgo recommends that from the schools and the home the little ones be supported to understand the fundamentals of financial literacy: planning, budgeting, and saving.

2. Carry out a good organization of income and expenses

One of the best ways to manage your personal finances correctly are to have a physical record of your income and expenses. However, with the current technological boom, it is advisable to use digital tools that allow you to know your monthly budget.

According to Hidalgo, there are several free applications to organize better, such as Wallet, MoneyWise, and Fintonic. These allow, from a mobile device, to view all financial products (accounts, cards, insurance, etc.) that the user has in a fairly simple way.

3. Learn more about credit issues

One of the biggest problems Peruvians have is misinformation about credits. For this reason, Hidalgo advises to inform yourself as much as possible about all the implications of acquiring this type of financial products, such as credit cards or loans. In that sense, it is key to know data such as the annual effective rate (TEA), the monthly rate, financing installments, among others.

More learn here: Besteconstuition

Hidalgo adds that good debt management on credit cards and/or loans helps maintain a correct credit history. In turn, this registry allows people to access new opportunities for financial leverage and other benefits.

 


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