Financial education programmes need a rethink

The majority of financial education programmes are based on delivering hard, factual or transactional information, despite peoples’ general disinterest in this sort of data, according to new research by communications experts, like minds, and psychologists at the School of Life. The research finds that a general disinterest in financial information, a lack of savings discipline and a struggle to see into the future are key barriers to people acting on the ‘hard’ information provided to them as part of a financial education programme, including those offered at the workplace.

Nick Throp, co-founder and director of like minds, said:

‘Behavioural characteristics and emotion play a far bigger role in our dealings with money than we might think. We need to look beyond providing factual information and engage with people before we can educate them.’

A recommended approach includes:

• understanding personality types and behavioural habits
• overcoming a general inability to see into the future
• using communications that inspire emotional responses.