Trade and Consumer Affairs
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DESCRIPTION
Past experience from enquiries and information requests made by consumers to consumer organisations, as well as experience from past initiatives such as the Household Economy Management Advice Programme, highlight the need to improve and expand citizens’ knowledge of the key concepts and basic aspects of managing their savings, loans and other bank services, as well as taking out insurance policies or pension plans and topics involving the return on their investments and the associated risks.
The aim is to foster informed consumption of these goods and services and minimise negative effects resulting from a lack of understanding of certain products, to prevent excess debt and foster respect for the rights of consumers who procure these sorts of services.
Acquisition of these kinds of skills should begin at an early age, which is why one of the main target audiences should be students, so that in lower and upper secondary education they can develop enough knowledge to enable them to easily balance and manage their finances in the near future.
Furthermore, the rise of services such as online banking is creating a generational gap, with many elderly people feeling helpless in the face of the gradual disappearance of physical bank branches and offices. They find it more difficult to gain access to information which is now provided mainly online rather than via the personal assistance they are used to. In view of the situation that has arisen and due to the vulnerability of this group, it should be the focus of special attention, along with other groups that have limited financial means or are at risk of social exclusion, such as female immigrants.
To this end, Madrid City Council, working through the Municipal Institute for Consumer Affairs (IMC), designed a Financial Education Action Plan in 2020 to be rolled out over the next few years, which will disseminate general information aimed at all consumers but with a particular emphasis on the groups described above. Traditional personal assistance will continue to be offered through the Municipal Consumer Information Office (OMIC), but will be extended in this case to all consumers who wish to further their financial knowledge, by means of a number of general outreach activities. Of particular note among these activities are:
- Production of over 75 micro-videos providing information on various topics related to banking, insurance and finances which are to be circulated online, over social media and at different events, fostering partnership with experts in the relevant fields and consumer organisations and other specialised bodies
- Inclusion of banking and insurance topics in annual consumer education programmes and, specifically, in school workshops and lectures at adult education centres
- Holding educational talks and other outreach and skill-building activities on the subject of online banking in municipal seniors’ centres, in partnership with the Directorate-General for the Elderly and social care services
- Creation of other outreach materials, posters, news bulletins, etc. and online resources relating to financial education
OBJECTIVES
- Improve consumers’ financial education to foster knowledge of the subject's key concepts and of their rights as consumers
- Educate consumers in order to optimise management of their personal or household finances, with a special emphasis on vulnerable groups
DURATION
The programme has a planned duration of 4 years, with the first steps carried out in 2020, namely the definition of contents and actions, selection of the target audience and dissemination models. It is expected to run until 2023.
THE PROJECT IN NUMBERS
The estimated budget for the programme is 100,000 euros over 4 years.
