Why is it important to invest in Financial Education in Nicaragua?
Since the beginning of the financial crisis, the importance of financial education has been recognized as one of the key elements for the economic and financial development of the populations. It is for this reason that the issue of financial education in recent years gained importance in the agenda of many countries, both developed and developing.
Nicaragua is the country of the region that most lacks knowledge on the subject. It is therefore necessary that the Nicaraguan authorities take actions aimed at promoting financial education or the development of a National Financial Education Strategy (ENEF, by its acronyms in Spanish). This ENEF must have the participation of all interested sectors in the matter that can contribute and promote a public policy of such magnitude, where it can also be considered the social-economic context of the country.
Financial education refers to the set of skills that individuals have regarding to money. Specifically, to the knowledge they have to make informed decisions on financial matters. It includes basic notions, such as characteristics and the use of financial products, going through more advanced topics and related to the knowledge of financial concepts, the development of skills and attitudes for the management of personal finances that include positive changes in the behavior of individuals. Financial education therefore plays a very important role in making economic decisions for any individual. At the same time, it can empower individuals and can help them to have a better management of their personal finances.
In Nicaragua there is not yet an ENEF, and the little legislation related to the matter is aimed at the financial consumer. However, there is interest from some sectors of the population in promoting financial education. Among the unions that have tried to promote financial education in the country are the private sector, financial institutions, civil society organizations, among others. However, although there is evidence and indications of interest to promote financial education in the country by key players that could contribute favorably to the promotion of a public policy of financial education for social inclusion, a joint impulse involving all sectors is still necessary, primarily the public sector.
It is necessary to design a national financial education strategy that combines the contribution of a variety of actors who have an interest in the subject. The importance of promoting financial education in a country like Nicaragua lies in the benefits derived from such education. These benefits can be reflected in the economy. Financial education can promote in the population the necessary skills to make informed and adequate rights as financial consumers. In addition, financially educated citizens will have a greater capacity to understand public economic and social policies adopted in their economy.
Amandamiguel Ramírez Jiménez
Associate
García & Bodán
Nicaragua