Introduction

In Spain, the population is ageing, meaning that the percentage of elderly people is constantly increasing and this group is already a significant part of the total population. However, this part of the population has a lower profile of digital financial literacy compared to the rest of the population.

This issue arises from the ever-increasing digitalization in all areas of life, including finance. Elderly people are often left out due to their low digital skills, putting them at risk of financial exclusion. To address this problem, an organization from the south of Spain has developed a solution by providing financial education to the elderly population through a radio program broadcasted every Friday. This is a great idea, as surveys indicate that radio is the second most credible medium in Spain.

Case analysis

In Spain, a large part of the population is elderly. According to data from the National Statistics Institute (INE), there were over 9.4 million people aged 64 and over in Spain in 2021, nearly 20 percent of the total population. However, by 2023, this percentage grew to 20.43% (higher than in Europe, where the proportion of elderly people is 19.7%). This indicates that the elderly population is growing rapidly. Moreover, this group is undoubtedly one of the most affected by the rise of digital technology. Certain factors make those over the age of 64 more vulnerable, and this vulnerability increases with advancing age. These factors include (OCDE, 2020):

• Cognitive decline: decrease of mental functions such as memory, language, orientation, etc.
• Physical decline: loss of physical capacity.
• Social exclusion: loss of social connections and increased loneliness.
• Lower digital literacy: little or no familiarity with new technologies.
• Lower financial literacy: provide information, knowledge and the skills needed to make better financial decisions.

According to the results of the Survey of Financial Competences (ECF), the level of financial literacy of elderly people (aged 65-79) is below the level of financial literacy of the total Spanish population (Bover, Hospido and Villanueva, 2016).

The previous data show that there is a need to educate the elderly people on digital financial aspects in order to achieve full financial inclusion of this part of the population.

Proposed solutions and recommendations

The problem of financial digital literacy among elderly people has a solution: financial literacy programs such as the following example.

Because older people have specific needs, it is worth mentioning a helpful tool provided by Instituto de Crédito y Finanzas de la Región de Murcia (the Institute of Credit and Finance of the Region of Murcia, ICREF).

This organisation creates a weekly radio programme, every Friday from 9:45 to 10:00 a.m., where knowledgeable people, employees of the organisation and experts from public and private institutions are interviewed. In these 15 minutes per week, they talk about the different aspects of finance. It is a great way to bring financial education closer to this group, which makes high use of radio as one of its most credible media. If someone missed the programme, ICREF uploads it on their webpage or in their YouTube channel to listen to it later.

The aim of these “Financial Pills” is to promote financial literacy, conduct and disseminate studies and analyses on the financial sector in the Region of Murcia, and improve the level of financial education among older people.

The program covers basic concepts like “financial literacy and habits of elderly people,” as well as other topics such as:

• safe investment
• housing as an investment
• stock market investment
• fixed income and equity investment funds
• cryptocurrencies
• the investment guarantee fund
• sustainable investment

Self-reflection questions

These questions can serve as prompts for introspection and self-assessment, helping individuals gain insight into their financial habits, values, and aspirations.

1. What financial skills do you believe are essential for people at different stages of life?
2. How do you think financial training should be structured to motivate older people?
3. If you had to rate your investment knowledge, would you say it is up-to-date and aligned with safe investment practices?
4. Do you think this initiative is useful to solve the problem? If your answer is no, could you give any suggestions for improvement?

Self-assessment questions

Read each of the 5 questions carefully and select the best answer from the options provided.

This multiple-choice test can help assess understanding financial journey and the lessons learned from his experiences.