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This article was first published in WARC.

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Key takeaways

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• With 73% of the UK population falling below the financial literacy level, financial services brands can play an important role in credibly redressing this and should be asking ‘are we doing enough to help?’
  

• Financial Education doesn't have to be conducted in a classroom. Harness the power of creativity to convey important lessons in ways that change attitudes and behaviours in more relatable and everyday environments. 

• Big brands have the power to normalise talking about money issues and dismantle societal stigmas. Through high-profile initiatives and campaigns, they can create safe spaces for open dialogue, increasing financial confidence and literacy among the broader population.

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Our society faces a looming crisis. Some 73% of the UK population is financially illiterate - falling below what is deemed to be acceptable financial literacy benchmarks and failing basic tests about money-related knowledge. We have some of the lowest financial literacy rates of all the advanced economies.

These are people from all walks of life, the likes of you and me. I talk to friends and colleagues who admit to being bamboozled by the intricacies of pensions and the ins- and-outs of ISAs. Many of us lack a thorough understanding of pensions, mortgages, loans, the tax system, and the plethora of financial products on offer. 

This undermines our ability to make beneficial choices about key financial issues in our lives and feel confident that we’re making the most of the money we have. 

This is not any individual’s fault. But brands must rise to the challenge. 

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FS Brands…this is your cue.

There is a need and opportunity for the UK’s financial services sector to step up their actions to improve the situation. Getting involved in financial education can benefit financial brands. If people see, and benefit from, financial organisations being helpful, impartial advisers, they will trust them more (and let’s be honest the sector has faced scrutiny in recent decades). The public is often sceptical when businesses support causes that are not directly related to the nature of their activities so this is a perfect opportunity if the brand’s platform, purpose and values align with addressing this need. Some brands have made notable interventions in this area, but the severity of the crisis means further urgent action is needed in supporting the public, empowering individuals and in turn benefitting from more confident customers and satisfied employees. 

So what to do?

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Tackle the cultural taboo

The problem of financial illiteracy is exacerbated by the entrenched societal stigma in the UK around talking openly and honestly about our personal finances. There remains a widespread societal notion that financial difficulties signify personal shortcomings. As a result many shy away from discussing them openly. In fact more people feel comfortable talking about mental health than they do money. Speaking of mental health, 39% of UK adults, that’s over 20 million people, say they don’t feel confident managing their money, and such financial stress causes significant anxiety and depression (68% of 18-34 year-old women say money has impacted their mental health).

Brands creating big campaigns and famous initiatives that attract millions can play a pivotal role in breaking the stigma. Normalising conversations about money and facilitating and encouraging open discussions. Such efforts go a long way to ease the pressure and perceived need to handle financial matters by themselves, and likely encourage people to take further steps to understanding and action. 

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Financial education not advice
Education is not only for the young. Even experienced adults with professional jobs often have low financial literacy. Across all ages there needs to be a greater focus on general financial education, with clear explanations of the basic concepts and language used in financial products. Without veering into giving specific advice – only accredited financial advisers should do this – brands could do much to enlighten the population on important financial matters, whether avoiding scammers, managing their pensions, finding the most appropriate mortgage or working out how to balance loans and maximise their assets. 

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Edutainment might be the answer. 

When we hear the words ‘financial education’ many people think it sounds boring and imagine themselves being in receive mode in a classroom. But it’s well documented there are more effective ways to learn;  doing, playing, being entertained leads to deeper understanding and retention compared to passive listening. Creative agencies, in partnership with financial services brands and their expertise may be perfectly poised to develop the solutions. 

Santander ran a campaign last year warning customers to beware of fraud, phishing and scams. Instead of taking a finger-wagging approach, it enlisted brand spokesmen Ant & Dec to perform a memorable skit with the “Scammer Time” campaign on the bank’s TikTok debut. This showed that teaching an important lesson can be engaging, fun and informative and that finance doesn’t have to be boring – depending on the creativity that is behind it.

Gamification can simulate real-life environments without the risk, the right brands could give people the opportunity to try the stock markets or make different decisions and play out alternative financial scenarios to their current ones.  GoHenry uses "Money Missions" to make financial education fun and engaging for children and the charity called MyBnk uses high entertainment teaching methods in simulated environments to great success. In fact some 73% of teachers believe MyBnk’s training is more effective than traditional methods. 

Storytelling is another entertaining way of successfully conveying information, changing attitudes and behaviours. While not a UK example, the popular South African TV soap opera"Scandal!" incorporated a financial education storyline into its plot. This initiative showed significant improvements in viewers' financial knowledge and resulting behaviour. 

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Consider spokespeople carefully. 

It’s often easier to learn from a person (or character) rather than faceless textbook or lecture style materials. People create engagement, elicit empathy, they’re able to make financial topics more interesting and relatable. They can offer diverse perspectives, a range of experiences and backgrounds and can address specific topics in depth that feels authentic.

In the USA Morgan Stanley have launched Money in the Making™, a financial education program aiming to help young athletes, entertainers and emerging talent in the sports and entertainment industry build and manage wealth. Working with well known entertainers, creators, and athletes, such as NFL great Larry Fitzgerald, Jr who will share his own learnings, personal stories, and key money lessons from his early playing days to post-football life.

It’s not surprising that we’re seeing a surge in ‘finfluencers’ and FinTok for guidance and financial planning. But this has dangers, as they tend not to be qualified financial advisers, and there have been warnings that they may be giving poor advice. Even so, there are opportunities for brands to work with influencers who align with audiences and brand values to promote financial awareness and literacy as crucially they are breaking down the stigma of talking about money and doing so openly and successfully.  

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Leverage Partnerships and Collaborations: 

By partnering with educational institutions, charities, influencers, or leveraging existing commercial partners, brands can extend their reach or the reach and impact of the good work already being done in enhancing people’s financial literacy. 

Carefully select the partners that align with your brand’s personality and values and are liked/respected by the target audience. They may be an existing authority used to enhance credibility, they may be able to extend the reach of your activity into hard to reach audience groups, they may provide an expert point of view on how to teach complex matters in relevant ways. 

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Huge  brand-building opportunities exist for Financial Services companies to tackle the UK’s financial literacy problem and dismantle the unhelpful stigma that exists around discussing money matters.

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