MasterCard Pursues Lofty Global Financial Literacy and Inclusion Goals for Children

A notable juxtaposition exists between the lack of financial education among children throughout the world, and the ubiquitous access to information that exists by virtue of technology and digital platforms espoused by young people.  Specifically, fewer than one percent of the 2.2 billion children around the globe has exposure to financial education, while less than thirty-eight percent of youth maintain any financial accounts.  As a result, they are unaware of the basic tenants of money management and are poorly positioned to understand the importance of personal finance and financial planning over their life course.

Notwithstanding the startling statistics relating to the lack of financial education and access to basic banking services among young people, children throughout the world have unprecedented exposure to technology and mobile devices that otherwise position them well to obtain information and resources to boost their level of financial literacy.  In fact, approximately ninety percent of young people over the age of thirteen in the United Kingdom report owning a mobile telephone, while even a greater percentage of kids six to seven years old in Sweden use the internet.  Access to and facility with technology and digital devices is continuing to reach children at earlier ages, with this trend widely expected to continue.

Recognizing that mobile and digital technologies can serve as an important platform for the delivery of financial education, tools and resources for young people globally, MasterCard has immersed itself in a broad range of initiatives aimed at improving financial literacy and inclusion that is setting the bar for multinational corporations to emulate.  The following are a few examples:

• MasterCard has partnered with Child Youth Finance International (CYFI) to develop procedures for MasterCard financial partners to develop products that are child friendly, which guidelines are consistent with the parameters set forth by UNICEF and CYFI in “Beyond the Promotional Piggybank” guide.

• In South Africa, MasterCard’s SASSA Debit program is a good example of how electronic payments are able to significantly strengthen the lives of young people, particularly those in greatest need, with approximately six million of the more than 20 million recipients in South Africa are recipients of child social welfare.

• MasterCard also recently announced the launch of its Center for Inclusive Growth, which supports research and initiatives relating to financial literacy, inclusion and economic growth.

While the above examples are only a few of the initiatives being pursued by MasterCard to address the lack of financial literacy among children globally, they are reflective of the company’s significant resources being devoted to financial education and inclusion at a time when we need it most to teach our next generation about the importance of money management and financial planning.  As these MasterCard programs and resources become more mature, their success will be watched closely and will serve as a basis for initiatives from other major corporations in the months and years ahead, which should bode well for the improvement of financial literacy in communities all throughout the world.