The Association of Montenegrin Banks promoted the European Money Week also this year. The Week was organised by the European Banking Federation with a view to promoting the importance of financial education. The Money Week is characterised by the activities that inspire children and young people to learn about money, savings, where they can make better decisions by mastering these skills through additional understanding, i.e. they can get acquainted with the financing processes and develop the entrepreneurial spirit since their childhood. Financial literacy refers to the ability to make sound financial decisions based on knowledge, skills and views, taking into account personal circumstances. Low financial literacy in adults is particularly related to housing loans. In that respect, in one of the most developed countries in the world, statistically, one third of the borrowers did not understand what the grace period was, as well as the amount of instalment after the grace period, which, together with the atmosphere of increased liquidity, unconventional placement and loose control, inevitably led to a crisis. Economic efficiency requires the borrower not only to be informed, but to understand what is offered to him. This allows him to measure the cost and benefit of the expected loan. Unfortunately, many see only the funds they need to receive, without reading the loan agreements and without understanding the terms of borrowing, and the problems then arise with the repayment of the loan.
This year, the main topic defined in Brussels is to overcome the gap in financial literacy and to recognise the role of financial literacy. The basic idea is that every child has access to financial education, the ability to understand financial services, to provide them with a rational approach to spending and the ability to develop money management skills. The education of children and the youth on their social and economic rights and responsibilities is key to create a generation of capable young people who can make wise decisions for the future.
It is important for children and young people to build up smart savings habits since the earliest age in order to have a more realistic view of the care of cash management skills later in life.
With a view to promoting financial literacy, the representatives of the Association of Montenegrin Banks held lectures on 12 March in High School Slobodan Škerović and in the Primary School Savo Pejanovic in Podgorica where an enviable level of communication has been achieved through interaction with children.