Financial Education

Indebtedness has become like the black plague of modern times, since it slowly eats the economy of families and not allowed to prosper materially. What is surprising is how this evil also affects more than one third of the younger population. According to a survey conducted in Chile by the National Institute for youth (INJU), 1.237.191 young people between 15 and 29 years presented some level of debt in our country, which corresponds to 33.18%. This alarming number must be added the fact that 72% of young indebted people use financial instruments including credit cards of department stores, which are known for their higher interest rates, occupy almost 70% of use. The document presented by the INJU CITES: despite their juvenile status and the meagre sources of income, financial institutions have defined young people as clients, managing to put their products in almost half of the young population (48.4%) (source:)). The first reaction that cause these unpublished figures is amazement before financial institutions, which apparently have no boundaries to offer their products and are aimed at University students to have, in the near future, a percentage of customers called young professionals. However, blame financial institutions by the State of the slowness of our young people is like trying to blame weed for a poorly done planting.

Youth debt goes far beyond the lack of ethics of financial institutions. The underlying problem is the poor financial education of these young people. In addition, it is not a problem inherent to the young sector of the population. The vast majority of adults also show alarming debt levels, regardless of their level of education. The reasons for such indebtedness are diverse and his justification goes beyond the purpose of this article. However, I want to mention one of the most common reasons of today’s consumerist society: the desire to own goods and services that have a cost greater than your income level and has prevailed on self-discipline and the application of wise money management basics.

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