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Trusting the Least Trusted Industry: Why Financial Literacy Shouldn’t Be Left to Banks

Writer's picture: Steve ConleySteve Conley

There’s a new “concern” swirling in the financial sector, and it’s nothing short of ironic. Young people are becoming financially literate—but here’s the kicker—they’re doing it through the internet and not through the hallowed halls of banking institutions. A spokesperson for the industry lamented this trend, painting a picture of doom and gloom.


Imagine that: trusting the least trusted industry of all to educate our youth about finances!


Trust Issues with the Trustiest


The banking and finance industry is up in arms because young people are learning about money online. The horror! According to these financial gatekeepers, our young generations are heading towards “real financial harm” by absorbing knowledge from social media influencers and independent platforms. You have to wonder if the real harm they’re worried about is to their bottom line.


Instead of enrolling in product-oriented courses taught by those who profit directly from sales, young people are turning to finfluencers. These online educators focus on how to keep your pockets full rather than emptying them for the sake of banking profits.


Apparently, financial literacy is only legitimate when it comes with a hidden agenda.


Schools and the Great Infiltration


We’ve already seen banks and financial institutions infiltrate our schools, embedding their biased curricula under the guise of financial education. Yet, their real fear is losing control over the narrative. If young people learn independently, they might just avoid the pitfalls that line the pockets of these financial giants.


According to FT Adviser, the London Foundation for Banking & Finance (LFBF) found that 23% of young people now get their financial knowledge from social media and influencers, up from 19% last year. Naturally, the LFBF described this as a “worrying trend.” Translation: young people are bypassing our sales pitches.


The Internet: The Wild West of Information


The financial industry claims the internet is dangerous because the information isn’t regulated by—you guessed it—the very product sales regulators who profit from said products. But here’s the twist: information and education don’t need product sales regulation. The real concern is that these young minds are learning from independent allies and public forums where the only thing at risk is reputation and follower count, not hidden fees and commissions.


A Drop in Parental Guidance


The report also highlights a sharp drop in young people turning to their parents for financial advice, from 68% in 2022 to 41% in 2023. It’s funny how the decline in parental guidance coincides with the rise of independent learning. Could it be that young people are realising their parents might not have all the answers, especially when those answers are often shaped by the same institutions now crying foul?


Schools Doing Better, But Is It Enough?


Interestingly, financial education in schools has improved, with 18% of students now citing it as their primary source of financial knowledge, up from 8% in 2022. Yet, this increase in formal education has coincided with a decline in curiosity about financial products—from 87% wanting to learn more in 2019 to just 60% in 2023. Young people are craving real, applicable knowledge, not just another sales pitch disguised as education.


The Real Takeaway


The banking industry’s outcry against finfluencers is nothing more than a desperate attempt to maintain control. As young people turn to more relatable, accessible sources of financial education, they’re breaking free from the traditional, profit-driven models that have long dominated the landscape. And that, dear reader, is a trend worth celebrating.


So, next time you hear a banker lamenting the “dangers” of financial education from the internet, remember: it’s not about protecting young people; it’s about protecting their profits.

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