Reflecting on the Best Gift for Children on Mexico’s Day of the Child and Adolescent
On this Day of the Child and Adolescent in Mexico, let’s reflect on the best gift we can offer them: a life free from financial stress. Financial education starting in childhood and a healthy approach to money can be the foundation for breaking free from the cycle that often dominates adult life: misinformation, poor decisions, and constant anxiety.
The Challenges of Financial Management in Adulthood
Beyond individual economic situations, managing finances in adulthood can be a daunting experience due to the distance fostered with money during childhood. From a young adult’s first salary, unexpected expenses, financial commitments, and often unnecessary debts arise, all stemming from a lack of planning. Financial stress becomes part of daily life.
- 36.9% of Mexicans over 18 suffer from high financial stress, which can reflect in physical health deterioration.
- 34.6% have little or no capacity to face unexpected expenses.
- 52.7% feel little or no tranquility regarding their savings capacity.
- 38.8% affirm that asking for a loan generates much worry.
Breaking the Financial Stress Cycle from Childhood
This cycle of disarray and financial anxiety can be broken from childhood. With games, readings, and most importantly, by example, girls and boys can develop a healthy relationship with money. They are an excellent opportunity to correct learned patterns and teach them to manage their finances better.
Although it’s true that sometimes families’ economic situations can pose a challenge to fostering a culture of saving, poor financial management doesn’t distinguish socioeconomic levels. This is why many adults maintain distrust towards formal financial products like loans, insurance, or savings accounts, even when they have access to them, thereby exacerbating financial exclusion.
Progress in Financial Inclusion in Mexico
According to the National Financial Inclusion Survey 2024, Mexico has seen significant progress in this area, as 77% of adults now have at least one financial product compared to 68% in 2018. This includes government support, payroll accounts, or Afore.
However, when analyzing by product type, there are areas for improvement, as only 28% of those over 18 have formal savings, 23% have insurance, and 37% have some type of credit (housing, vehicle, personal, credit card, etc.).
The Importance of Financial Education
To increase inclusion and, above all, to access and use these financial services, it’s crucial to have financial education based on rights and obligations starting from childhood—a more assertive education that allows for a less stressful life.
Let’s learn and teach the youngest about these financial product advantages to give them more opportunities to build a better future. This Day of the Girl and Boy, let’s give them more than just fun; let’s provide them with tools to grow with a good relationship with money. This lesson will serve them throughout their lives and enable them to accumulate wealth.
Key Questions and Answers
- What is the main topic of this article? The importance of providing children with financial education to help them avoid financial stress in adulthood.
- Why is financial education crucial from childhood? Financial education helps children develop a healthy relationship with money, correct learned patterns, and learn to manage their finances better.
- What challenges do adults face with financial management? Adults often struggle with unexpected expenses, commitments, debts, and constant financial stress due to a lack of planning.
- How significant is the progress in financial inclusion in Mexico? There has been considerable progress, with 77% of adults now having at least one financial product. However, there’s still room for improvement in areas like formal savings and insurance.
- Why is financial education essential for breaking the cycle of financial stress? Financial education based on rights and obligations from childhood empowers individuals to live with fewer financial worries.
*The author is the Director of Corporate Communication, Sustainability, and Public Affairs at Scotiabank Mexico.
