Adrian Mitroi, professor of behavioral finance: "Financial education allows us to face the competitiveness of the times we live in"

Financial education is independent of a person's age, gender, level of education or wealth, and arguments like "I'm too old" or "I'm poor" are no longer acceptable today, Adrian Mitroi, analyst, told us CFA and Professor of Behavioral Finance.

The financial analyst stated: "Financial education, together with technological education, health and social education is among the critical elements that allow us to face the competitiveness of the times in which we live. No modern citizen can ignore financial aspects anymore because he uses financial products intensively".

Adrian Mitroi added: "Financial education helps you become more in control of your financial destiny, closer to financial independence. You can build a career, a family, and your dreams are more feasible if they are covered by a minimum understanding of financial aspects. Unfortunately, we rank last in Europe in terms of financial literacy, but by my calculations we rank first in the already positive differential in the pecuniary reward for women versus men. A socially emancipated nation like ours is very backward when it comes to financial matters, but probably half the people are convinced that they are financially literate. Overconfidence in one's own abilities is a well-defined psychological aspect in behavioral financial psychology."

• "There is too much politics and too little business in the Romanian social discourse"

The CFA analyst points out that financial education requires effort, but a properly educated person can no longer be manipulated.

"You need to inform yourself and look with skepticism at "internet influencers", who sell "cut corners (in the sense of shortcuts to success) solutions". There is no such thing; they just clip some success stories. You have to read, inform yourself and be able to adjust your opinions. If a person has an adequate financial education, he can no longer be manipulated," says the professor of behavioral finance, adding: "Children must be familiar with financial aspects from an early age, to learn both formally and informally. Of course the media has a role in the information process and I think there is too much politics and too little business in the Romanian social discourse".

• What does a financially literate person need to know?

A financially educated person must, first of all, know very well the products he uses, says the CFA analyst.

"Credit and debit cards are essential. The Internet Banking service is mandatory. They are products that help us to be financially efficient and represent our financial interface", says Adrian Mitroi. "A person must learn to save and manage his financial expenses, that is, the money should not stay in the current account. The money must be placed at least in a savings account, so that it works, at least a little, in its favor", the CFA analyst pointed out.

According to the professor of behavioral finance, after a person learns to save, he should start investing. "It starts with state securities and, after understanding the operating mechanisms, you can move on to private pension funds and, necessarily, to insurance policies. It is very important to understand how insurance works because everyone has insurance for their home, car, etc. The next phase is long-term investments, which involve risk. Then you can move on to IPOs from the Romanian market and, finally, to FinTech," the finance professor told us.