Financial education shapes the youth

An informed citizen is worth two. A motto that also applies to money, as a better understanding of economic jargon is of both general and individual interest. Indeed, financial education helps combat over-indebtedness and inequalities. It also provides each citizen with the means to make decisions in their own interest, to protect themselves from fraud risks, and finally to participate knowledgeably in economic and political decisions.

The benefits of early awareness  

Like any learning process, financial literacy deserves to be instilled early, at the latest during adolescence, since 90% of 15-17 year olds ¹  have a bank account and 61% have a payment card. As for exposure to financial scams, it begins as soon as children acquire their first mobile phone, through social networks where influencers promise tempting gains via fake investments.

Some experts believe that the topic of money should be addressed as early as the “tooth fairy” age, when children are introduced to the symbolic management of a budget, credit, and savings. This idea is supported by the German Chancellor, Friedrich Merz, who proposes giving 10 euros of pocket money per month to children aged 6-18, invested in shares through personal securities accounts, to teach them investment culture. The idea of educating young people about money before they reach adulthood is widely supported, and both public and private initiatives are moving in this direction.

A financial education passport for middle school students

Aware of its role to play, the French Ministry of Education launched in 2019 an educational program (EDUCFI) in several pilot academies. The program includes a two-hour module addressed to 8th-grade students, organized around three topics: budget management, learning banking and insurance tools, and understanding basic economic concepts. At the end of the training, students must correctly answer a questionnaire to obtain a "passport." ² Thanks to its success, the program was expanded nationwide in 2023.

Simplifying concepts, the key to success

Start-ups operate in a niche market and offer budget management tools adapted to young people. In 2015, the Swedish fintech Gimi developed, in partnership with the Dutch bank ABN Amro, a playful³application that allows children aged 7 to 13 to manage and save their money while having fun. In France, the playful approach is also popular but in a more school-oriented format. For example, the start-up Iziwup introduces children to finance with an activity⁴ book accessible from age 7, filled with games, quizzes, and captivating stories.

Talking about money with young people can also benefit older generations. "Teenagers do not hesitate to share the budget pilot and expense pilot apps we created with their parents who are in difficulty," explains Christine Charrier, Deputy Director of the Banque de France for the Vienne department. A virtuous approach indeed, even more meaningful in a context of economic crisis.

Discover our feature on "Financial education: leveraging a reduction in inequality" by clicking here.