Introduction
For years, strategies have been implemented to ensure that financial education permeates the Mexican population, aiming for improved quality of life and subsequent well-being. However, have these strategies been successful? Juan Luis Ordaz Díaz, coordinator of the Financial Education Committee at the Mexican Banks Association (ABM), shares insights into the successes and challenges faced.
Current State of Financial Education
According to the National Financial Health Survey (ENSAFI) by Mexico’s National Institute of Statistics and Geography (INEGI), 53.2% of the population claims to control their expenses, but only 32.8% manages to stick to a budget. Ordaz Díaz explains, “People understand what a budget is and its purpose, but only 2 out of 10 actually follow one properly. We still need significant work on the practical application.”
Since 2018, financial culture has remained relatively stable, though not increasing, according to Ordaz Díaz. He also notes that there are signs of greater financial inclusion in the country, such as cautious behavior during recent economic crises. People avoided debt and even saved more, leading to increased bank deposits during the crisis.
Gender and Age Gaps
Despite progress, Ordaz Díaz acknowledges the gaps created by technological advancements and macroeconomic factors, including women’s labor environment. A study by María José Roa and Alejandra Villegas from the Espinosa Yglesias Center for Studies reveals that women, along with rural and low-income populations, continue to have the lowest levels of financial inclusion and highest vulnerability.
Additionally, there is uneven growth across geographical regions, with the northern part of Mexico historically advancing in most areas compared to the south. Ordaz Díaz points out that the City of Mexico, despite having the highest average education level, faces significant financial stress.
4th Congress of Financial Education
To tackle the challenges of widespread financial education and converting knowledge into habits, the ABM has organized the 4th Congress of Financial Education for four years. This free, online event takes place from 9 AM to 2 PM.
Participants can register on the ABM’s website and access the agenda with all the scheduled talks. The panels are divided into four main categories: from emotion to action (behavioral economics), innovative education, digital allies (financial influencers), and cybersecurity challenges in the digital era.
Key Questions and Answers
- Q: How successful have financial education strategies been in Mexico? A: While there has been progress, there are still challenges. Only 32.8% of those who track expenses manage to stick to a budget, indicating a need for more practical application.
- Q: What signs indicate greater financial inclusion in Mexico? A: During recent economic crises, people demonstrated cautious behavior, avoiding debt and saving more, which led to increased bank deposits.
- Q: What gender and age gaps exist in financial inclusion? A: Women, rural populations, and low-income groups continue to have the lowest levels of financial inclusion and highest vulnerability.
- Q: What is the 4th Congress of Financial Education? A: An annual, free, online event organized by the ABM to address challenges and advancements in financial education.
