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Dr. Charles Barugahare- February 15, 2024
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The top trends shaping personal finance and how they will evolve in 2024; an analysis of how most individuals are likely to respond to personal finance matters. Most people are likely to be influenced by; fast evolving financial education approaches, increased personal finance awareness and rapid advancements in financial technology products.
Fast evolving trends shaping personal finance education approaches
Top on the list is the fast evolving financial education approaches. This is a recognition that financial education is going through many sporadic changes. The most notable change is the high level realisation of the critical importance of financial awareness. The speed at which for instance on line financial education is providing knowledge, awareness and skills is proof of increasing ways and approaches to financially learn. Learners are engaging, practicing, applying and transforming themselves in unprecedented ways. This trend has reached a new level and will continue to grow at even a much faster rate. People who may not quickly cope and adapt may be left behind.
There is more recognition of individuals demanding diverse learning approaches. The generalized financial literacy curriculum is no longer appealing to many of the learners. Customized learning approaches paying attention to specific preferences and desires are gaining more ground. A systematic shift is happening of addressing specific financial skill gaps targeting unique learning requirements.
More than ever before, the shift in personal financial learning is towards experiential learning. The traditional classroom-based lectures at predetermined venues and times are gradually phasing themselves out. When you go to a market stall in any Kampala- Uganda suburb and find people with Momo Pay, Airtel Money Pay, their financial learning requirement may be how to use and apply those platforms in a secure and convenient manner. A two-hour of financial guidance may be the financial learning they require. This learning has to be provided during flexible learning times, with case studies and real-life demonstrations.
The financial education approaches are a reflection of aligning to flexible and fast changing needs of particularly adult learners. Individuals, institutions and governments have greatly increased their interest in financial management as an essential survival life skill.
Increased personal financial awareness
Financial awareness greatly influences and impacts financial decision making. There is a growing trend of individuals, institutions and communities seeking to be more financially aware and empowered. Emphasis on increased financial awareness will result in responsive financial behaviour. This will then translate into individuals and households experiencing better financial planning, resilience and reduced financial distress.
Personal finance awareness is known to be a key driver of economic and social transformation. Financial experts highlight its profound influence in promoting good investment environment, fast adoption to financial shocks and being dynamic with their financial engagements. Such people seek financial knowledge, advice, and are continually exploring financial growth opportunities.
The benefits of increased financial awareness include: (a) Reduced personal financial mistakes. (b) Enhanced preparedness for uncertainty and emergencies. (c) Empowered to focus better on their financial wellbeing. (d) Improved financial confidence and discipline.
Rapid shifts in trends shaping personal finance technology products
In 2024, we are likely to see increased adoption of financial intelligence and use of machine learning technologies. Witness enhanced influence of how we transact, handle money and invest using new technologies and products. We are likely to experience creation and adoption of more money management applications. Get more integrations of personal financial platforms and applications by governments, institutions and agencies. I predict that we are likely to see more legal frameworks by governments adopting technology products such as crypto currencies and many mobile payment platforms. We may witness more financial technology products coming on the market creating flexible, convenient and faster ways to transact and do business.
However, these products may come with new complexities and risks; cybersecurity threats are growing at very high rates, with several people losing money in new products and off payment platforms. Some of the threats will continue to arise out of not appreciating how these new financial products work and the risks their in. While some people will exploit these opportunities for exponential financial growth.
Conclusion
The simple message is to keep informed, learning and adapting to these trends shaping personal finance in 2024 and beyond. I recommend that you pay attention to how these trends in personal finance will shape the you earn, effectively use, grow and protect money in 2024. The bottom is, financial awareness and empowerment will continue to promote and shape better financial decisions, and responsive personal financial management behaviour.
Dr. Charles Barugahare
