While for Mariano OtaloraDirector of the Argentine School of Personal Finance, “financial education is super important -even more so in a country with so many crises and instability- for people to make better financial decisionsknow when to spend, invest, borrow, know how to plan your finances, put together a business plan and projections. must be mandatory”.
And faced with the reasons why it is not mandatory, the economic consultant admitted that “one cause is politics, because politicians in general are not interested in arousing the interest of people knowing some issues and on the other hand, I do not know how many people are trained to provide financial information in Argentina in a massive way in schools”.
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All the young people have had experiences with money management, that is, they have a knowledge base. And according Celeste IbanezHead of Responsible Banking/ESG of Santander Argentinaresult “important to be able to make responsible decisions”. But it is not enough, it is also essential “Know the alternatives that we have through the account where that first salary is deposited”.
How do I do it? Ibañez advised “anticipate and prepare for when the time comes. Think about goals for the first income, what are the current expenses, how much do you plan to save and how much to spend”.
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Financial budgets as a basis for savings
From Macro Bankemphasis is placed on the “personal budgets”, whose function is to control income and expenses. Accompanied by “a monthly separation of a small amount of money that serves to cover contingencies or to achieve a goal that is proposed and deposit it in a savings account”. In that case, it should be considered as a fixed expense, just like rent or taxes.
The budget is the basis of saving, the first step to being financially responsible people. Furthermore, being a matter of habit, turns out to be the part of the income that is not consumed and can be saved to meet future needs. It must be clarified that There is no single or best way to save.
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“Budgeting is very important.which will allow to quantify the income and expenses of money in a certain period of time. It allows planning a better use of money and helps to acquire the necessary discipline to fulfill obligations, take advantage of opportunities and determine what part of the salary they receive can be used for savings”, admitted Deleonardis, from BBVA.
Otalora agreed that “the best way to save is impose it, separate a percentage of the salary, which is the fair value. and the idea is do not use it for current expenses”. Although he also noted thatmany children live with their parents and there are some possibilities of not facing important expenses and also save a very important percentage”.
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How to conserve money and not lose value over time
To conserve money and prevent it from losing value over time, Banco Macro recommends the fixed term deposits. But there are also fcommon investment waves, Actions, bonds, among others. Whatever decision it is, it will depend directly on the young person and the expenses they can afford. But if you are in a position to save it, the investment it’s a good option.
“The type of investment to choose will depend on the objective and / or personal goal. Investments usually have different levels of risk, depending on the type of risk aversion that a person has, it will be the option that best suits them”BBVA’s Deleonardis said. And he added: ”It is very important get advice about the different options offered by the market and know what their advantages and disadvantages are. And to hit, it is key to do prior research and ask for advice”.
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In Macro they insist that “the expected returns may be higher, but the user also assumes the risk of losing part of the capital”. Equally, “it is possible to find investment products with different combinations of risk and return to satisfy the needs and preferences of all people”.
“It is recommended start small, small to large. From the least sophisticated to gaining confidence and achieving goals. Once you know an instrument, its month-to-month performance, you are in a position to understand if it is the right one to achieve your goalor if you need one that performs differently”, assured Ibañez.
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Is it possible to save and enjoy at the same time?
Among so many forms of financial tools, taking care of your pocket and wanting to achieve financial planning, the answer remains: is it possible to save and enjoy at the same time?
Banco Macro stated that “it’s possible”. “Savings not only come from setting aside a small amount every month, but also you can save by taking advantage of the daily offers that purchases with debit or credit cards often bring, combining enjoyment (in the case of movie tickets, for example) with savings”, he justified.
Along the same lines, BBVA’s Deleonardis stated that it is “very important to carry out proper financial planning. It seems complicated but actually It is simple and precisely allows the young person to save but at the same time to take advantage of the amount destined for activities that they enjoy”.
“Saving implies a present decision with a view to achieving a goal over time. The satisfaction of having the possibility to do it is part of that process.”concluded Ibañez de Santander.
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The government launched the National Strategy for Financial Inclusion (ENIF) 2020 – 2023. An instrument of public policy that allows bring financial goods and services closer to the population as a wholepromote universal access, and their responsible and sustainable use throughout the national territory, and reduce the gaps in use that affect the most vulnerable social sectors.
For its part, The City of Buenos Aires will add -as of this year- for students in their last year of secondary school 30 hours of financial education chair and other employability skills: how to put together a resume and how to handle a job interview.
Source: Ambito
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