From stone tools to steam-powered ships to modern robots, technology has been a constant throughout human history. Its benefits have been immense — from enabling the Industrial Revolution to reducing unemployment rates. Today, financial literacy is more important than ever – but how can technology help promote it?
A lack of financial knowledge can be detrimental to individuals and businesses alike. In fact, a recent survey revealed that three-in-four Americans live paycheck to paycheck, and many of these people are not prepared for a financial emergency. Fortunately, there is a way to bridge the gap – by teaching people how to take control of their finances.
The most effective way to teach people about personal finance is through digital tools. These platforms allow students to learn at their own pace and provide instant feedback on their progress. Additionally, these tools can also make learning fun by incorporating gamification techniques. By turning financial education into a game, students will be more interested in mastering the concepts.
In addition, financial technology can nudge users to keep track of their spending and savings goals by sending alerts when they exceed their budget. Furthermore, these tools can also bolster digital literacy by helping users understand cybersecurity aspects of their personal finance. This includes understanding how to avoid common scams and phishing tactics. In addition, these tools can also help individuals differentiate between assets and liabilities, as well as understand the taxation and investing aspects of their finances.