The democratization of financial services is rapidly changing the way consumers think and act about their finances. But are we equipped with the knowledge to use them?
Financial education, or financial literacy, is crucial to making responsible financial choices. Yet statistics show that two-thirds of the global population is financially illiterate, and, only 28% of accounting-owning adults.
Financial inclusion comes from education, starting from early childhood. Children as young as 3 years old can grasp the basic idea of money, and their money habit can already be set by the age of 7. Basically, the weight of delivering financial education rests on the individual (and their family).
This market is clearly underserved. So far financial education has been patchy, and usually delivered as a bundled add-on to banking services, such as challenger banks offering a free or low-cost extension so account holders' children. But more and more players are emerging focused exclusively on the segment.
Incentivizing financial education from an early age can set up kids and teens for financial resilience in the future. We mapped 40+ startups and scaleups working towards helping to shore up the financial knowledge of kids and teens.
