Can Tech Tools Boost Financial Literacy?

Are Mobile Apps and Social Media Boosting Finance Literacy?

The Opportunity!!!

The rapid advancement of mobile applications and the terrific boom in social media have prompted every industry and sector to seize the opportunity for innovation, customer acquisition, and engagement. Finance is definitely not lagging behind. It has slowly penetrated the world of social media and technology and spread its wings to reach out to every category of customers who are ready to harness the power of technology for learning and personal growth. 

But first let us dig deeper into the world of social media and mobile applications, trying to understand how they work and why they have been gaining such exorbitant attention globally. This will help us to clarify how both mobile apps and social media influence personal finance decisions. 

Social Media and Mobile Apps defined: 

Social media, commonly identified by companies like Facebook, Instagram, YouTube, TikTok, Pinterest, Twitter(now X), and many more, are platforms that encourage expression of thought and ideas in the form of articles, blogs, photos, videos(both short and long form), question and answer sessions, community building and even sharing latest news updates. People discover interesting and entertaining topics and methods of doing many activities while putting up their own concepts, ideas, beliefs, and queries. Such a process successfully connects similar-minded people around the world and also give a sense of belongingness in society. 

Mobile applications, on the other hand, are highly useful and easily accessible software on smartphones, tablets, or smartwatches, providing a huge range of functions and services in different fields, having user-friendly interfaces and fast installation process. They have penetrated all kinds of sectors, meeting consumer expectations in terms of real-time information, knowledge sharing, payment and money transfers, entertainment, community building, shopping and overall, creating a world where everything seems to happen at the touch of a finger on the smart-screen. 

Now, how are mobile apps and social media platforms promoting financial literacy? 

Mobile Applications:

The below-mentioned facts highlight how mobile apps are changing the finance industry

Their features:

• They are installed in our smartphones, which is always with us, anywhere we go. 
• They can be easily downloaded and used.
• Downloading process is free of cost. 
• They have a user-friendly interface that is conveniently accessible by anyone. 
• They work with good loading speed. 

Promoting financial education:

(Some famous ones: You Need a Budget (YNAB), PocketGuard, Simplifi, NerdWallet, Goodbudget)

• Some of the best mobile apps for personal finance management have all the necessary features that can monitor financial behavior in real-time.
• They are perfectly designed for setting financial goals for budget and controlling overspending.
• Quite a number of them have investment-related features. 
• These apps often offer study modules and lessons that are interactive and easy to learn. 
• Quizzes, games and challenging sessions along with rewards promote financial education that is fun and engaging.  
• They also offer personalized suggestions and recommendations that help investors make informed financial and investment decisions. 

Social Media:

Next, let us come to social media. With the advent of internet and smartphones, social media has become an indispensable part of our daily lives. So here is its role in the finance field. 

• It is a great source of monetary information in the form of community posts containing the latest financial news and updates around the world. 
• People share good money management tips and tricks that promote better decision-making.
• Many financial institutions promote their products and services that help in better investment, budgeting, lending, brokerage, funding, stock trading, and asset management procedures. 
• Various institutions teach how to market financial services on social media.
• Various social media platforms are meant for the exchange of information and question/answer sessions. 
• Financial influencers also called Finfluencers, create written and video content to spread awareness about different finance-related topics, including sharing personal experiences, ideas, struggles, and guidance in their financial journey and retirement plans.  

Conclusion:

Thus, to summarize, both social media and mobile applications have become intertwined with our daily lives due to their ability to reach out to a huge base of customers and break down money-related jargon and complicated procedures into simple and easy-to-understand steps, ultimately demystifying the world of finance by making learning fun. 

More Resources

• Patience - Key To Savings
• Blind Pursuit of Financial Achievement
• Gig Economy - Flexibility Meets Financial Uncertainty
• Quant Funds - Algorithms Redefining Investment Strategy