The expectations of Gen X and Y towards financial education

Within a few years, Generations X and Y will represent a vast majority of asset holders. What are their expectations on financial education ?

These  generations were born between 1965 and 2000. However, according to a recent Possible Finance survey, 70% of French adults, and even 75% of Gen Y, have not mastered basic financial concepts.

It is therefore important to provide this population with new tools and methods so that they can fulfill their role as actors in the financial world, with full knowledge of the facts. 

This is how the OECD defines financial education: “a combination of financial awareness, knowledge, skills, attitudes and behaviors necessary to make the right financial decisions and ultimately achieve individual financial well-being (…)”.

Neuroprofiler takes the subject of financial education to heart and we see it as an asset for every individual whether they want to invest or not. 

We therefore conducted an online study on 50 French people aged between 25 and 55, in order to better understand what their ideal financial education application would be.

We present below the results of this survey.

A marked interest for investment

72% of respondents want to invest. 

There is a real desire to get involved in the world of finance, for various reasons:

  • Planning for retirement
  • To fight against inflation
  • To earn more money/ To be financially secure
  • To grow and not let one’s capital/savings stagnate

We note that the French investors are not only interested in investing for financial reasons, but also in a longer term logic of valorization of their capital and planning for their future retirement.

A growing interest for financial education

70% of the respondents (put back the respondents) wish to follow a financial education and learn more about financial markets and products. 

Their main motivations are as follows

  • To earn more money
  • Avoid the risks of financial markets
  • Seize good opportunities
  • To invest their savings better
  • To be able to start investing

For some, financial education is the gateway to their first investments, a tool that will allow them to discover a world that seemed opaque until now. For others, improving their financial literacy will help them to master the intricacies of the financial markets, recognise opportunities and improve their profitability.

The respondents who do not wish to invest or learn often cite the same arguments: a lack of interest in the subject or an unethical image of finance. 

More interestingly, a proportion of respondents who do not wish to invest do so for lack of knowledge and do not wish to train for fear that it is too complex a task to undertake. It is therefore a question of changing the image and perception of the real level of knowledge required to start as a beginner investor.

What format for a new financial education?

Existing tools are inadequate

Many individuals have already taken a financial education course (64%), either on their own or during their academic career. A majority of them (78%) have been trained on the internet through mooc or online courses. Only 6% of respondents claim to have used a financial education application.

70% of Gen X and Y say they are moderately or not at all satisfied with their previous financial training.

A strong desire to learn about financial markets and products

 68% of respondents would be willing to use a financial education platform if it were made available to them. The survey also highlights the fact that Millenials and Gen Xers are largely using online banking or trading platforms for their investments. The main challenge is therefore to provide a new tool that is more adapted to the expectations of these individuals.

Their objectives are clear:

  • To become more competent
  • Invest better

 What would this ideal platform look like?

The survey highlights the criteria that respondents consider most important for their ideal financial education platform:

  • Reliable content, certified and audited by a recognized authority
  • A clear, easily navigable platform
  • The presence of an investment simulator
  • The possibility to learn quickly
  • A complete offer

For a matter as serious as their investments and with the proliferation of false information on the internet, the French wish first and foremost that the content offered to them be reliable. 

One cannot help but notice a need for efficiency in the main criteria of appreciation of the respondents. The platform must be able to train an investor with short, clear and reliable content, in order to encourage a rapid transition to investment.

As for the format, the respondents overwhelmingly favored infographics (interactive or not), even if video or article formats were appreciated.

EDUprofiler: the opportunity to learn through a fun e-learning platform

Based on this survey and various studies on the subject, Neuroprofiler has developed the EDUprofiler, our new solution which offers individuals the opportunity to learn about financial markets and products. 

Our objective is to lift the opaque curtain of finance and allow new and experienced investors alike to invest with full knowledge of the facts and in accordance with their values.

The platform allows, thanks to a fun and educational path, to discover new financial products and to directly apply the new knowledge acquired by redirecting clients to the appropriate investment opportunities. Let’s meet the yougsters’ expectations on financial education with EDUprofiler !