The Association of Banks of Montenegro is also promoting the European Money Week from March 18 to 24 this year. Financial education helps people develop the habit of saving, investing and debt management as well as using many banking services for their own benefit. Be moderate, even when saving. Just as you shouldn’t chase every opportunity to earn money, you shouldn’t chase every savings either. Exaggeration in both cases can create unnecessary nervousness and problems that money cannot solve.
At a time when the whole world is facing economic difficulties, financial stability becomes necessary for each individual and society as a whole. However, achieving this stability is not possible without adequate financial education. Understanding the basic principles of saving, investing and proper money management is key to making informed decisions that enable long-term security.
The results of the quantitative research from 2021. showed that 22.1% of the respondents got acquainted with the basics of banking and managing personal finances during their education, most of whom have completed university or post-graduate studies, 41.4% of respondents were partially familiar with the basics of banking and managing finances, while 36.6% did not have the opportunity to learn about this topic during their education. All respondents whose highest level of education was elementary school or who did not complete school stated that they did not have the opportunity to become familiar with the basics of banking and managing personal finances during their education.
Regardless of the level of education, our population is not sufficiently familiar with concepts such as interest rates, inflation, what is an annuity plan, debt management, what a transaction account is and how to open it, what a grace period is, how payment cards are used and what they are actually for. Increasing awareness of these topics can help people avoid bad financial decisions. Financial literacy refers to the ability to make sound financial decisions based on knowledge, skills and attitudes, taking into account personal circumstances.
Many developed countries, such as Canada, Finland and Singapore, are introducing mandatory financial literacy into education systems, recognizing the importance of acquiring money management skills early. Through these programs, students learn the basic principles of saving, investing, and budgeting, which help prepare them for financially responsible decisions in the future. A well-structured national financial education strategy is essential to promote economic stability and increase competitiveness. Many countries have taken proactive steps in developing and implementing such strategies, with the banking sector serving as a key partner in supporting financial education initiatives.
Traditionally, for the past 8 years, this year as well, the Association of Banks of Montenegro visits primary and secondary schools, as well as colleges, where we try to bring this issue closer to the young population through age-appropriate lectures, during which we distribute gifts provided by commercial banks.
