Latest news with #NationalFinancialCapabilityMonth
Forbes
23-04-2025
- Business
- Forbes
Mind The Financial Literacy Gap: Coachella's Viral BNPL Moment Is An Industry Wake-Up Call
This year, Coachella wasn't just a showcase for the biggest names in music. It was a flashpoint in the growing tension between fintech innovation and financial literacy. When festivalgoers revealed they had used Buy Now, Pay Later (BNPL) services to cover the cost of tickets, social media lit up with finger-wagging commentary, viral headlines, and plenty of moral panic. Meanwhile, DoorDash quietly rolled out a similar installment option, signaling just how quickly BNPL has become embedded in everyday spending. But the real question isn't whether BNPL is being overused. It's why so many people feel the need to rely on installment plans for basic expenses in the first place. That's not a payments problem. It's a system problem, rooted in the fact that millions of Americans have never been taught how to navigate credit, debt, or financial decision-making with confidence. BNPL Isn't the Issue, Misunderstanding It Is The past two decades of payments and fintech innovation show how the right technologies can expand access, improve transparency, and offer greater financial flexibility—especially for consumers underserved by traditional credit models. BNPL, when done right, is one of those innovations. It's not inherently risky or irresponsible. It's simply a tool—one that, for many users, offers clearer terms and better short-term control than payday loans, for example. But like any financial product, it requires informed usage. Unfortunately, the average consumer is far from equipped. According to a 2023 TIAA Institute study, U.S. adults answered only 48% of financial literacy questions correctly, and only 18% could handle questions related to risk. That's a national failure. As we mark National Financial Capability Month—aka National Financial Literacy Month—this should worry regulators far more than whether someone financed a festival wristband. The Real Risk: Meeting Consumer Confusion with Judgment The backlash we're seeing against BNPL, and against the people using it, is rooted in a dangerous assumption: that financial tools should be foolproof. That if a product can be misused, it shouldn't exist. By that logic, we'd need to eliminate student loans, even mortgages. But we don't. We expect people to navigate them with minimal education and support. That's precisely the problem, and exactly why financial literacy needs to be treated as a foundational skill, not an afterthought. BNPL should be no exception. The reality is that when confusion is met with judgment instead of guidance, we widen the trust gap between financial institutions and the communities they serve. Regulation Alone Won't Solve This Let's be clear: smart regulation is always welcome in this industry. Transparency, responsible underwriting, and clear disclosures should be the baseline for every fintech offering—BNPL or otherwise. Providers have a duty to act in good faith, especially when serving younger or underserved consumers. But regulation isn't a substitute for education. Nor should it become a bludgeon that stifles innovation. The U.S. financial regulatory framework is already struggling to keep up with technology. What we need is a more collaborative model, one that brings regulators, fintech leaders, educators, and consumer advocates together to design solutions that work in the real world. The finance industry could start by treating financial literacy the same way we teach driver's education: essential, standardized, and required before taking the wheel. Empower people to ask better questions, and we'll get better answers. BNPL Can Be a Catalyst, Not a Cautionary Tale There's a healthier, more constructive path forward, and BNPL can be part of it. When installment solutions are built on existing cards, offer zero or low interest, and include transparent repayment structures, they become a bridge—not a trap. More importantly, they can become an entry point into deeper financial capability, if we build the right educational scaffolding around them. That's where regulators, fintech platforms, and educators must work in lockstep: not to eliminate risk, but to equip consumers to understand it. So instead of judging consumers for using BNPL to see Travis Scott or Lady Gaga, let's start asking why they didn't fully understand what they were signing up for, and how we can fix that. The future of financial health depends not just on the products we build, but on the knowledge we provide.
Business Insider
22-04-2025
- Business
- Business Insider
During National Financial Capability Month in April, A.D. Banker Reminds Financial Professionals of Their Resources to Help Educate and Pass Along Knowledge to End Users
Finance Professionals Can Help Educate the General Population on All the Ways to Feel Empowered and It Starts With Understanding the Current Threats and Opportunities OVERLAND PARK, KANSAS / ACCESS Newswire / April 22, 2025 / A.D. Banker promotes financial education and awareness all year long, but April, which is recognized as National Financial Capability Month, is the perfect time for finance professionals to freshen up on educational resources, facts, and tips for use with their clientele. It is up to financial professionals to relay information about financial products to their clients, such as how to manage savings, access and use credit, and safely complete transactions, as suggested in various ways on Here are some other facts and figures: Financial professionals can increase awareness of vulnerable investors to prevent financial exploitation, such as from cryptocurrency scams, which have been on the rise year over year. This also highlights the need of educating clientele on how to identify, prevent, and report fraudulent activities and scams. Revenue from pig butchering scams, where perpetrators cultivate relationships with individuals and convince them to participate in fraudulent schemes, increased nearly 40% in 2024 from the previous year, according to blockchain analytics firm Chainalysis. Banks and their staff can promote financial capability through high-quality financial literacy education or simple reminders through ongoing email programs that aim to build foundational knowledge in a metered way, without being overwhelmed. They can also offer financial services for all types of consumers, especially those who are underserved, those in life transition like those who have children leaving for college, experience divorce or death, or minority groups with possible language barriers. "Here at A.D. Banker, it's always Financial Capability Month as we educate the professionals helping our communities feel secure and supported," says Kimberly Flewelling, ChFC®, CLU®, CASL®, National Securities Expert at A.D. Banker. Education isn't a one-and-done type of mentality. Especially with financial and securities education, market conditions and regulations provide an opportunity to not just check the box with education, but to be able to learn something that is valuable to your entire clientele portfolio. The more our communities are educated, the more they're empowered and the more we can eradicate fraudulent behaviors, the more we stabilize our financial futures." About A.D. Banker For more than 44 years, insurance and securities pre-licensing candidates have trusted A.D. Banker to provide them with the information needed to pass insurance and FINRA licensing exams. Courses are cross-referenced with the exam content outline to assure candidates receive what they need to know to produce outstanding results for Life & Health, Property & Casualty, Adjuster, and Securities exams. Content is presented through multiple, specialized modes of learning, online multimedia courses, and live webinars. As students progress through the material, the customer care team provides friendly, responsive support to make the road to licensing easier. Once licensed, producers can meet their continuing education requirements while satisfying state-specific requirements via classes, webinars or online self-study courses. Learn more at A.D. Banker is part of the Career Certified family of educators. Learn more at Contact Information Liz Meitus SVP Corporate Marketing 720-822-5314 Buse Kayar busek@ View the original press release on ACCESS Newswire
