Financial Products

The need for the International Day for Financial Education

Data from the Bank of Spain indicates that in the last 29 years the amount deposited in the banking entities of Cantabria has gone from about 1.6 billion euros in 1987 to over 8.8 billion euros. 2016, which demonstrates the need for financial knowledge and the International Day of Financial Education, which is celebrated today, October 3.

The various branches distributed by the autonomous community of Cantabria managed more than 30 years ago more than 62 million euros, from public administrations, some 473.7 from other sectors resident in savings deposits, and more than one billion euros in deposits the term, an amount that almost three decades later already exceeds, in total, 8.8 trillion.

In Cantabria, the number of credits granted has also increased

both to the public administration and to other resident sectors, from just over one trillion euros in 1987 to the 11.9 granted in March 2016, according to figures that collects the web of the Bank of Spain.

In view of the increase in deposits and credits of the last 30 years in the region, the decrease in the number of banking entities stands out, in fact, the autonomous community lost in 2011 the only Banco de España office it had.

The period in which the greatest number of credit institutions was in Cantabria was the period between 1998 and 1999, then there were 510 offices, compared to 422 that were recorded in March 2016.

In the last three decades, the number of deposit institutions has also decreased, from 485 to the 423 that currently exist (2016).

new financial tools and the latest technology, show the need for the financial education plan launched in 2008 by the Bank of Spain together with the National Securities Market Commission, and with that other institutions, private companies, foundations, social agents and financial entities collaborate.

The purpose of this financial education plan, which had a first “contact” until 2012 and will run until 2017, is to solve some of the problems that the financial crisis has revealed and that could have been avoided, or, at least, mitigate its effects, with a “better” financial knowledge.

It also seeks to facilitate the administration and distribution of resources of individuals, which is increasing “more complex”, because the increase in products causes consumers to face a “wide range” of options.

Citizens now are not limited to choosing between interest rates or loans, but the fact of saving or financing has become a task that needs training.

Hence the importance of celebrating the Day of Financial Education, teaching that aims to individuals understand financial terms, with which they will have to deal at some point in their lives, and yet now they are incomprehensible.

According to the Organization for Economic Cooperation and Development (OECD), financial education is the process by which “consumers improve their understanding of financial products, concepts and risks and, through information, instruction and advice, develop the skills and the confidence to become more aware of financial risks and opportunities. ”

The OECD also indicates that through financial education individuals are able to “choose, require help and adopt other effective actions to improve their financial well-being”.

their money more adequately in situations such as the acquisition of a home

their money more adequately in situations such as the acquisition of a home

the formation of a family, the purchase of a car or retirement, decisions with financial transcendence that oblige individuals to have a good financial culture if they want to take better advantage of the opportunities and achieve their objectives.

The Financial Education Plan is based on a series of principles that allow covering all financial products and services in all segments of the population, acquiring a public commitment from financial supervisors and cooperating among entities, maintaining actions throughout of time, and reach all sectors of the population according to their characteristics, needs and access channels.

Principles that also aim to provide the necessary tools and access, evaluate the work done to know its effectiveness, avoid overlaps in the measures applied, and that public and private organizations comply with these bases included in the plan.

During the first five years of the plan, various initiatives have been carried out

such as the design and launch of a page on financial education ( that allows citizens to train and plan their personal economy with tips on how to achieve of the month, advice to investor to know the offer of products and financial services that there is in the market.

Agreements have also been signed with different organizations and associations that have allowed the development of financial education programs in different schools, the publication of training and information material in “Finance for all”, training professionals to learn about financial education, or carrying out activities for young people, women, immigrants, retirees and people with disabilities.

With the implementation of this plan we want to promote financial education in the Spanish education system because according to the CNMV and the Bank of Spain, it will guarantee adequate knowledge so that future generations can face important challenges “when planning their savings for retirement and coverage of their health needs.