Increasing financial well-being via an FB group
Text: Heli Lehtsaar-Karma, NGO Rahatarkus
Photo credit: Gordon Johnson from Pixabay
Banks have played an important role in educating people in financial matters. The biggest bank in Estonia, Swedbank, established few years ago a Facebook group named „#Kogumispäevik“, where people could share their tips and tricks for better management of everyday money matters. The group turned out to be highly succesful among the people, who shared similar issues with dealing with their finances.
Swedbank’s Institute for Finances was established in 2010 to provide independent information and practical advice. It aims to support people in making economic decisions, offer insight on managing finances and promote financial literacy or financial wisdom in Estonia. One of the „tools“ in educating people is the Facebook group mentioned above.
Study: could the peer effect work?
Mrs Kati Voomets, Head of Institute For Finances, conducted a study about „#Kogumispäevik“ in 2019. The aim of this research was to study the peer effects in an online saving community, and to learn how these can be used for improving household financial behaviour.
Several focus group interviews with the group members revealed that the ideas that came from the group were widely used by members to be better at saving money, to invest more efficiently etc. Members found that the group kept them motivated in situatuions where it was likely to spend some money for the things that were not needed at that moment.
Support from others keeps people motivated
„One of the the key findings was the fact that individuals had joined the group not only for receiving information, but also as means for personal and social integration. Respondents highlighted the role of online peers in finding motivation for achieving saving-oriented lifestyle and confirmation that it is a socially acceptable way of living,“ Voomets noted.
According to Voomets, group members also see the group as a “social search engine“. The tips and advice received from the community have been incorporated in daily financial habits by some, but not all members. Peer advice has motivated respondents to open a savings account, automate the act of saving, start keeping track of their finances, take up investing, and cut back expenses.