The Danske Bank Group has taken the first steps in improving young people’s knowledge of money and personal finance, so that they can get a good start on their adult lives. The Group has launched the Mind Your Money
online universe in Denmark, and Norway, Sweden and Finland are up next in 2010. The initiative is intended to advance the financial literacy of young people using their means of communication, and it is part of the Group’s financial literacy programme
. Poor knowledge of money and personal finance
A survey made by the YouGov Zapera research institute on behalf of the Group shows that 18-27 year olds have poor knowledge of the basics of personal finance such as variable expenses, interest rates, budgeting, disposable income, etc. The survey also shows that young people are aware of their knowledge gap.
Unrealistic view of money
“The gap between what young people think they know about personal finance and their actual knowledge is very striking. And because of it, young people get a difficult start on their adult lives as their view of money does not always correspond to reality,” explains Esben Torpe Jørgensen, project manager of the financial literacy programme.
The figures speak for themselves. More than 7% of 21-30 year olds are registered as poor payers, and this age group has the most registrations relative to its size.
Speaking their language
To get young people interested in sound personal finances, the Mind Your Money website features life situations that are typical for the target group. These situations include moving away from home, moving in with your fiancé(e), starting to study, buying a new home, etc.
“We need to address real life situations that are recognisable by young people and not take the conventional approach with dry facts and figures. Our messages are delivered through interaction with visual elements, tools, calculators, quizzes, tests, etc.,” says Esben Torpe Jørgensen.
A win-win situation
Control Your Money is part of the Group’s financial literacy programme, which is intended to improve young people’s knowledge of money and personal finance.
“The more financial understanding our customers have, the better they can challenge the Group to develop better products. Customers also get a solid foundation for making sound financial choices,” says Morten Kamp Jørgensen, head of the Group’s financial literacy programme.
Investing in financial literacy since 2008
The financial literacy programme has been running since 2008, and the Group is committed to investing in advancing the financial literacy of children, teenagers, parents and teachers. First with Moneyville for 5-9 year olds; now with Control Your Money and Teaching Financial Literacy; and now with Mind Your Money, an online universe for 18-27 year olds.
Published on March 4, 2010.