21st June 2024

Better business. Better community

Business Industry and Financial

Seven Ways To Transform Financial Education For Young Adults

Jason Ratcliffe, MSc, BA (hons), AssocRICS / Director of Steren Surveyors.

If we want the next generation to have financial stability and independence, it starts with financial education for young adults. However, in our increasingly tech-centric world, financial literacy not only includes personal finance basics such as budgeting, saving, investing and managing debt, but also understanding modern banking solutions and fintech.

But for a generation of digital natives, why does there seem to be a gap between young and more seasoned investors in today’s financial landscape? More importantly, how do we begin to demystify complex investing strategies to make them more accessible to the next generation?

To help equip young adults with robust financial skills, I ask members of the UK Executives Group, a community I lead through Forbes Business Council, how we can adapt our financial education to shift beyond basic concepts of saving and include modern banking and investment trends.

1. Start with a shift in culture and mindset.

We have to grow young adults’ knowledge of making investments and bold, yet sound financial decisions to grow wealth using modern ways of investing. For example, old ways of growing wealth include getting a salaried job and saving money in banks — essentially trading hours for money. Instead, we can bring the culture and knowledge of finance into homes, schools, etc. The point is to shift our culture and mindset to think much more broadly. – Steven Paul, Leadership Exposé

2. Include interactive tech tools.

In our digital age, it’s vital to include interactive tech tools in financial education for young adults. Incorporating simulations of online banking, investment apps and cryptocurrencies can help them understand and navigate modern financial trends. This approach teaches traditional financial principles and also equips them to manage their finances effectively in today’s tech-centric world. – Aleesha Webb, Pioneer Bank

3. Market the future rather than product features.

Finance Institutions (eg. banks and insurance) have everyone’s attention. These platforms should be about educative resources instead of product features. The more finance-literate your audience is for self-growth and a secured future, the more your financial institution would benefit. Sell “future” rather than product features. To grow youth financial literacy, encourage a saving culture as part of your financial services. Catch them young. – Jennifer Orode, Ingenium Concepts Limited

4. Integrate gamification and fintech.

Gamification includes interactive budgeting apps, reward systems, leaderboards and challenges. Fintech integration involves partnering with budgeting apps and neobanks, while gamified investment simulations can simulate real-world scenarios. This approach offers several benefits, including increased engagement, accessibility and practical application. – Oluwaseun Dania, Alpha-Geek Technologies Ltd

5. Discuss where the changing landscape of fintech started.

Discuss the history of how the innovation of fintech and new technologies has changed the industry, specifically the dawn of neobank solutions and neo-backed fintech solutions like SoFi and others that have removed a lot of barriers to entry for access to investment vehicles. These have brought new investors to the playing field, forever changing the landscape. – Reggie Young, Exit Advisor

6. Understand how buying and selling dynamics work.

One way to adapt financial education for young adults is to incorporate modules on digital banking apps and fintech platforms, teaching them how to manage accounts, budget, invest, and understand the risks and benefits of online financial tools. More important is to understand how buying and selling dynamics work and what is needed to make a profit. – Atte Suominen, PADEL1969

7. Leverage real-time data analytics and AI-driven insights.

Our young adults are already digital natives, but financial education must integrate real-time data analytics and AI-driven insights. This approach demystifies complex investment strategies and modern banking operations, fostering a more informed and agile financial decision-making mindset while making it interactive and relevant to today’s financial landscape. – Jim Stevenson, Bletchley Group

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?