Essay Example on Cultural Impact on Financial Education at Chase Bank

Attitudes towards money and finances, similar to most human attributes, are customary and influenced by the culture of the people. Even today, in the modern world, there is evidence of cultural impact on financial education. As an intern at Chase Bank, a financial institution, one gets to experience first hand, the impact of culture on financial education.

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Chase Bank is an established bank recognized for its customer service. The bank, similar to the majority of banks, offers primary banking services including checking and savings accounts, credit cards, loans as well as investments. In all of these services, the personnel interacts with the clients of the bank quite extensively. It is from such interactions that an intern gets the opportunity to observe the attitudes and beliefs of the customers towards money.

According to Starcek and Trunk (2013), Literacy is a for all time created ability of people to utilize socially orchestrated frameworks of images forgetting, understanding, making, and utilizing writings for life in the family, school, at work and in the public eye. The bases of Literacy are perusing, composing, and estimation, so aptitudes without them are viable working in the cutting edge created a social brand. Literacy is the essential information and expertise; it is a primer condition for a fruitful and imaginative self-awareness and dependable acting in expert and public activity.

Consequently, financial Literacy covers the essential Literacy, therefore the perusing and scientific literacy, and is all the while its overhaul since it requires more information and abilities explicitly in the financial field. Here are altogether standards of the general Literacy legitimate that are overall understanding and the ability to utilize financial information when deciding. In this setting, the Financial Literacy does not present an isolated sort of Literacy yet as a connection between general perusing and numerical Literacy and other fundamental information and abilities associated with individual and other financial issues. Financial Literacy is one of the parts of financial aptitudes - it is communicated as data about funds, financial patterns, and can comprehend or so to state the skill of financial items, thoughts, and dangers.

Atkinson and Messy (2012) characterize Financial Literacy as a mix of monitoring, information, aptitudes, conduct that is essential for an appropriate financial choice and to arrive at its financial riches. Financially educated people are by Kempson, Collard, and Moore (2006) people, who have scientific Literacy, can adequately deal with cash, and expertise to deal with credit and obligations. They can assess the requirement for protection and assurance. They realize how to assess various types of dangers and reimbursements that are associated with various prospects of setting aside cash and stores. They additionally see extensive moral, social, political, and ecological components of accounts.

Willis (2008) places the weight on intellectual perspectives for Financial Literacy that incorporate the information, instruction, and data about various financial fields, about how to oversee cash and sources, about banking, stores, credits, protections, and duties. Furthermore, we have the comprehension of fundamental ideas on how to oversee cash and different methods. Then again the financial illiteracy appears through pointers of financial shakiness like substantial liabilities, too little reserve funds, terrible getting ready for the future (for instance for extensive predicted costs, preparatory reserve funds for a possible unanticipated decay of the financial circumstance, retirement investment funds) and not ideal venture practice.

Therefore just like scholarly Literacy, financial education should be a lifelong endeavor. Nonetheless, banks and other financial institutions can help change the attitudes of people concerning their finances. They can help change the cultural notion of consumerism that influences the financial Literacy of most individuals. When a generation is born and raised in a consumer culture, it is often common for such individuals to develop consumer-oriented attitudes towards their finances. Taking and credit cards from different banks, for example, is a common practice among most of the customers at Chase Bank. Despite their excellent customer and credit status with the bank, most of these customers tend to obtain credit cards from the bank and also from other financial institutions.

The most outstanding are the helpless groups like youthful, jobless, settlers, and old occupants. There the monetary and social condition in its structure people settles on financial and with funds connected choices alters quicker and quicker. Obligations regarding financial choices and security, later on, are transmitted from the nation and business to the person who successively faces the challenge connected with choices. Increasingly entangled and self-important become the financial needs of people.

Researchers affirm that financial training and thus a more elevated level of financial literacy affects the person's improving understanding of financial items, ideas, and dangers. Based on got data, directions and target counsel the abilities and certainty for reinforcing the mindfulness about financial dangers and openings can be grown increasingly compelling. Financial proficient people are better familiar with where to discover help and they can take progressively powerful measures to improve their riches. Robson (2012) stresses that measure for fortifying the financial literacy invigorates progressively reasonable financial choices in relationship with various life occasions.

It is for such behaviors towards money that Chase Bank and other financial institutions are striving to utilize behavioral theories to educate their clientele on sound financial practices. The theory of planned behavior, for example, has been applied to determine clients' actual behavior choices and the results used in the strategic plans used by the bank. According to the theory, three factors affect an individual's behavioral intent. These factors include subjective norms, perceived behavioral controls, and positive or negative valence of attitudes towards target behavior (Xiao, 2008).

Using these factors, the bank designs adverts and runs campaigns that promote and constitute the financial education of the clients from their own space. In doing so, the bank will infuse the right financial information on their clients and thus constitute their culture impacting their actual financial practices in the long term (Xiao, 2008). For example, the bank can leverage on creating positive valence towards saving by imparting the culture of saving in young children by running campaigns where they donate piggy banks to school and carry out presentations on the same.

Another theory that is evident at the bank is the transtheoretical model of change. According to the model, there are five stages of behavior change: pre-contemplation, contemplation, preparation, action, and maintenance (Xiao, 2008). Bankers usually use such models in the design of their services to better convince potential clients to sign up for their services. In the selling of mortgages, for example, banks hire professionals who design adverts that focus on the two stages of behavioral change, as explained by the transtheoretical model. Adverts and products are meant to reach bank's potential clients and influence them in the pre-contemplation and the contemplation stage to coerce them subconsciously to "invest" their money or savings in this context, in a mortgage plan offered by the bank.

Conclusion

Conclusively, banks, including Chase Bank, utilize psychological as well as other scientific theories and models in the design and operation of their systems. Most of these applications are often focused on customer attraction and retention in order for the business to prosper and flourish. In the same way that the banks benefit from their clients, the financial advice, as well as the services offered by the staff, benefit the clients in different ways, including those that qualify as financial education, as discussed above.

References

Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study.

Kempson, E., Collard, S., & Moore, N. (2006). Measuring financial capability: An exploratory study for the Financial Services Authority. In Consumer Financial Capability: Empowering European Consumers. European Credit Research Institute (pp 39-77). Retrieved from http://www.ecri.be/HTM/research/capability.htm.

Robson, J. (2013). The Case for Financial Literacy: Assessing the effects of financial literacy interventions for low income and vulnerable groups in Canada. Social and Enterprise Development Innovations.

Starcek, S., & Trunk, A. (2013, June). The meaning and concept of financial education in the society of economic changes. In international conference "Active Citizenship by Knowledge Management & Innovation ", held in Zadar, Croatia in.

Willis, L. E. (2008). Against Financial-Literacy Education. IOWA Law Review, 93-285, 94. Retrieved from http://www.law.uiowa.edu/documents/ilr/willis.pdf

Xiao, J. J. (2008). Applying behavior theories to financial behavior. In Handbook of consumer finance research (pp. 69-81). Springer, New York, NY.