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Independence is a common desire among the young people. But how many are really prepared for the responsibilities of adult life? A worrying statistic suggests that, in the financial dimension, this phase of life is often difficult and according to figures from the credit bureau sector, more than half of the population aged between 30 and 40 appears on credit consultations with some restriction on their name.

It's important to consider that in this age group, people are generally building their careers and, at the same time, making commitments such as buying a house and having children. When these commitments accumulate, the phenomenon of default manifests itself: according to data from the credit bureau sector, in October 2021, almost 8 million young people up to the age of 25 were in default.

The lack of financial education, habits, the appeal of consumption and economic difficulties, such as unemployment, help to explain this situation. So what can be done to make this phase more comfortable for the younger generations?

Experts and financial educators are practically unanimous in pointing out the importance of learning to deal with money from an early age. The current scenario still leaves something to be desired, but there is one silver lining: the new generations are growing up surrounded by information. In particular, the topic of personal finance has never been so much on the agenda, present on social networks, traditional media and increasingly close to schools.

In 2021, through the Learn Value programThe Central Bank has launched a financial education. The aim is to reach 5 million students in municipal, state and federal primary schools by the end of this year. Schools can register for the program to train students and teachers and thus contribute to eliminating an old bottleneck: the absence of financial education in basic education.

This knowledge is fundamental for young people to move on to more sophisticated and complex financial services, which are expanding in the country. A survey recently released by Datafolha confirms that young people between the ages of 12 and 17 are already showing some maturity in matters related to money, but there is still room for improvement. Asked what would make them take on a debt today and pay it off in the future, half of those interviewed mentioned entrepreneurship. Only 15% mentioned a consumer loan.

The majority of those interviewed in the survey see loans as a means of generating future dividends, rather than a way of anticipating consumption, either by investing in a business or by investing in education. On the investment side, however, the survey reveals the need for more education: 64% said they believed it was possible to make a lot of money in a short time by investing based on tips from the internet. And this belief, without the proper preparation to filter and evaluate the content, represents a danger.

Young people starting out in banking and credit relationships now have another incentive to make payments on time: the Positive dataThe ANBC's recent survey, which values credit history in the analysis for granting loans and financing, also popularizes the concept of the credit score. Benefiting from greater familiarity with digital channels, a recent ANBC survey showed that 52% of young people under 25 know their credit score.

Building up a good payment history from an early age, as well as avoiding the bad habit of late payments and lack of financial control, enables young people to obtain larger limits and different types of credit, which must, of course, be used carefully and thoughtfully.

When thinking about the future of the credit market, prospects are usually analyzed based on structural changes such as the Positive Registry, the Over-indebtedness Law, the new Judicial Recovery and Bankruptcy Law, the ESC (Simple Credit Company), Bill 4.188/2021 on the Guarantees Framework, which is still under discussion, and other legal initiatives affecting credit.

In parallel with this transformation, which is accelerating and represents a redesign of the legislation governing the credit market, it is essential to consider the cultural, educational and, above all, behavioral aspects of consumers - especially younger consumers, the focus of this article.

Recognizing one's own financial limits and the need to build up a financial reserve are values that should be passed on from an early age. Combined with the ease with which new generations can use the digital environment, where financial services are migrating, these values will help to promote a healthy credit environment and improve the financial health of Brazilians.

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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor