Half of Young Brazilians Ready to Go into Debt to Invest in their Own Business, Survey Reveals

Young Brazilians already “demonstrate mastery of basic concepts of financial education and how to spend money thinking about the future,” according to an update shared by C6 Bank.

The most recent survey by C6 Bank/Datafolha indicated, for example, “that 50% of boys and girls aged 12 to 17 would use the money from a loan to undertake.”

Another 42% would “go into debt to pay for a course abroad, while less than 15% would agree to take on debt to buy computers or cell phones, to give themselves a gift or to undergo a cosmetic treatment.”

Datafolha interviewed 942 teenagers and young people “between the ages of 12 and 17, from all social classes and regions of the country, between October 18th and 25th.” The poll’s margin of error “is two percentage points.”

Liao Yu Chieh, head of financial education from C6 Bank, said:

“When asked about what would lead them to go into debt today to pay in the future, most young people demonstrated a greater awareness of the use of money and this is very positive. This type of debt, at this stage of life, and well planned, can yield good results in the future. It is different from taking out a loan to pay for consumption, buying a car or a cell phone, for example.”

Among young people from classes A and B, “studying abroad tops the list of situations in which going into debt would be worthwhile at this time.” Among adolescents from class C, D and E, setting up or investing in their own business “would be the main reason for taking on debt.”

The data go in the same direction as other surveys on entrepreneurship, “which point to a growing interest of young people in having their own business.”

Impulse buying also “does not appear as a common financial habit among young Brazilians, according to a survey by C6 Bank/Datafolha.” On the contrary. Among respondents from all social classes, 83% say “that before buying an item they ask themselves if they really need it — an important lesson for anyone seeking a healthy financial life.”

Asked about what would make them save money, “a third of young people answered that they would keep a reserve to use in case of an unforeseen event and 24% to invest and have a monthly income in the future.”

Another 20% would save resources “to buy something they really want in a few months and 16% are already thinking about retirement.” Among girls, 37% “would save money for contingencies and, among boys, 26%.” Overall, 69% said they “currently save money.”

As expected, young people “are also optimistic: 89% believe they will have a better financial life than their parents in 20 years.”

Plans for the future, however, “may come up against the worrying lack of information.”

The C6 Bank/Datafolha survey “showed that 75% have no knowledge about private pensions, 73% say they know nothing about overdrafts and 68% have no information about the stock exchange.”

Only in the case of credit card revolving interest “is this percentage lower, at 44%.”

Liao Yu Chieh added:

“The survey itself shows us that the credit card is a product that is more present in the daily lives of young Brazilians: more than half borrow their parents’ cards, including the password, when they need to make a purchase.”

In addition to having little knowledge of relevant topics in finance, the survey “showed that around 44% seek information on how to handle money on social media profiles such as Instagram, Tik Tok, Twitter and Facebook.  ”

Only 6% say “they look for content on specialized or news sites.”

In addition, 64% agree “that you can earn a lot of money in a short time by making investments on your own based on internet tips.”

For more details on this update, check here.

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