Ninth economy on the planet, Brazil has a minority of citizens with Financial Education

Although it holds the position of the ninth largest economy on the planet, Brazil continues to 'recover' in terms of Financial Education, since that of the 35% financially 'literate' adults, only 21.9% admit to being prepared to face a situation of 'expense unexpected’.

This reckless scenario becomes clearer, taking into account the most recent Indebtedness and Default Survey of the Consumer (PEIC), in which the percentage of indebted families increased by 0.2 percentage points (p.p.) in June, compromising 78.5% of the total. Of this total, 18.5% admit to being heavily indebted, the highest level in the historical series, which began in January 2010. In parallel, the Central Bank (BC) reported that the share of 'risk debt' jumped from 9.9% in December 2020 to 14.1% in December 2022.

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At the same time, the Locomotiva Institute revealed that 61% of debtors tend to carry out a 'account rotation', whereby it is chosen the account to be paid in that particular month, depending on the amount of interest and the payment term that it offers.

The research developed by the S&P Global Financial Literacy Survey, shows that the contingent of 35% of financially literate adults in the country would rank 67th out of 143 countries analyzed.

The financial educator and director of new business at Multimarcas, Fernando Lamounier, shows a 'golden rule' for organizing finance, the 50, 30, 20, in which 50% of income goes to fixed expenses, 30% to variable expenses and the remaining 20% ​​to investments or fund reservation. “This financial rule is simple and separates the budget into three parts. The objective is to prioritize the most important expenses to spend the month in a peaceful way”, he points out.

For Lamounier, many young people get into debt due to lack of financial awareness and schools are capable of preventing this problem, helping students to be able to maintain themselves financially, controlling spending by impulse.

Despite the prospect of average annual GDP growth of 3% over the next five years, Brazil continues, however, to collect successive default records. The reversal of this serious socioeconomic problem, the inclusion of Financial Education as a mandatory subject in the curriculum of elementary schools, becoming part of the National Common Curricular Base (BNCC), in force since 2020.

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