Chapter 14

AI, FINANCIAL EDUCATION FOR A MORE FREE AND CONSCIOUS SOCIETY

Introduction:

In a world where accelerated consumption and financial ignorance affect millions of people, financial education has become an urgent necessity, from a practical point of view, because unfortunately, the world holds a popular and very mistaken concept: "how much you have, how much you are worth." The global trend of reducing the growth rate affects retirement pensions and increasingly closes the employment of adults, forcing them to plan for the future, not as a luxury, but as an essential tool to live with dignity and freedom to empower citizens and build a more just, free and conscious society.

Regardless of profession or occupation, we must learn financial matters wisely to live comfortably and save for contingencies and old age. Today, thanks to advances in artificial intelligence (AI), this knowledge is accessible to everyone, from children to seniors. Smart platforms, personalized apps, and virtual assistants can guide people in managing their finances simply and effectively.

The first thing we need to be clear about is that money is valued based on time. The financial sector charges periodically, regardless of the length of service, regardless of the cause, incorporating the level of inflation into the cost of money.
Everyone should be clear that their monthly expenses cannot exceed their income and that their personal savings must be as large as their circumstances allow, with a clear goal of building seed capital over the long term, a base for contingency reserves, which must be invested in the financial system so that it generates income and does not lose its purchasing power.

The use of cash is declining in many parts of the world, driven by the rise of digital payments, online banking, and cryptocurrencies. However, its complete disappearance is an open debate that depends on multiple economic, technological, and social factors.

Why is cash use declining?  Digital payments and e-wallets:  Platforms like PayPal, Apple Pay, and Google Pay allow for quick transactions without the need for physical cash.
Digital banking and fintechs:  More and more banks are operating without physical branches, promoting electronic transfers.
Cryptocurrencies and blockchain:  Although not yet widely used, cryptocurrencies have proven to be a viable alternative to conventional money.
Security and control:  Cash is more vulnerable to theft and fraud, while electronic payments can be tracked and offer greater transparency.
COVID-19 and accelerated digitalization:  The pandemic has driven the use of contactless methods to prevent the spread of disease.

What is financial education and why is it so important?

Financial education provides the ability to understand and responsibly manage the money we earn, spending, saving, or investing appropriately, with the ability to make informed decisions that positively impact our present and future economic lives.

In everyday life, many people work hard but are trapped in a cycle of debt, wasteful spending, and a lack of savings. This isn't always due to a lack of income, but rather a lack of knowledge of how to manage what they have. A lack of financial education leads to consequences such as over-indebtedness, financial dependence, family stress, and a lack of opportunities to pursue entrepreneurship or progress.

The situation is aggravated when we consider that, in most countries, this type of education is not taught in a structured way in schools or at home. As a result, millions of citizens reach adulthood without knowing how a credit card works, how interest is calculated, or how to plan for their retirement.

On the other hand, a person with good financial education can make smarter decisions: avoid unnecessary debt, prepare an emergency fund, invest for the long term, and, above all, live with greater peace of mind. This not only improves individual lives but also strengthens family finances, drives community development, and contributes to the overall well-being of society.

In this context, artificial intelligence is presented as a powerful ally in closing this knowledge gap. Thanks to it, it's now possible to access educational tools, virtual counseling, and applications that explain, step by step and in a personalized way, how to improve our relationship with money.

E-banking  refers to the provision of banking services through online platforms and mobile applications. It allows users to conduct a variety of banking transactions and activities without having to visit a physical branch; it has significantly simplified and streamlined the way people manage their finances, offering convenience and accessibility 24/7. It is important to use appropriate security measures to protect financial information online and prevent fraud. It allows for the following uses: 

Balance and transaction inquiries: You can check bank account balances, view recent transactions, and review your account history in real time.

Fund transfers: Allows you to transfer funds between your own accounts, third-party accounts, and other banks; and allows you to make scheduled transfers.

Paying bills: utilities, credit cards, loans, and more.

Make deposits: Allow customers to scan checks or take photos of them with their mobile devices to deposit them into their accounts without having to visit a physical branch.

Purchase of financial products: Allows you to purchase and manage financial products such as certificates of deposit, savings accounts, stocks, and more.

Card Management: You can activate or deactivate cards, set spending limits, and track credit and debit card transactions.

Alert and Notification Services: Banks often offer email or text message alert services to keep customers informed about important transactions or changes to their accounts.

Mobile banking services: Banks offer mobile applications that allow customers to access their accounts and conduct transactions from their mobile devices.

The financial sector  has transformed significantly in recent years and is poised to continue advancing as required by the Digital Revolution. Particularly noteworthy,  Nubank  is a valuable example to learn from Colombian David Vélez, the banker who has no fine print in contracts; he presents the terms upfront with a 100% human, digital approach, and without a management fee. He claims that his users don't buy products but rather their culture, and that the company's value stems from seeking a solution to a large-scale problem. It doesn't have customers but rather users whom it listens attentively as depositors of money, as a basis for creating products that respond to their needs. It seeks to democratize finance by placing the users of its services at the center of importance, proposing wealth and service distribution by making banking transactions simpler for the working class and providing credit to those who are not property owners.
Leveraging FINTECH (financial technology) expands the range of financial products with increased agility, transparency, and security, complemented by personalized service and additional benefits, expanding the alternatives for managing money.
The clear trend is toward digital banking, utilizing all the technological developments such as voice-enabled payments, the use of disintermediation platforms, the growing Artificial Intelligence and Big Data, the approach to 5G, increasing data transmission speeds, and Blockchain, a technology based on a chain of blocks with a public and distributed database in which transactions carried out on the network are securely recorded.

TIME VALUE OF MONEY

In financial mathematics, it is assumed that money has a cost that is charged periodically and constitutes a higher capital value, depending on the interest rate and the frequency of its settlement. If we assume a constant nominal interest rate, the effective rate of return will be higher the shorter the period used to settle the interest. 

By leveraging financial mathematics, we can equate an amount to be received in a specific future with the amount we could accept in exchange immediately. The  equivalence depends  on the interest rate, which is agreed upon between the parties. 
Inflation, to a greater or lesser extent, is a global phenomenon exacerbated as a result of COVID-19, making it necessary for businesspeople to learn to live with it, just as coffee growers in some towns learned to produce amidst the rust. Due to rising prices, cash management has become a topic of special importance in our time. It is an action characterized by the search for mechanisms that allow us to increase the speed of money circulation. We have to think like people in countries with rampant inflation: cash burns hands, damages safes, and rots mattresses.
The faster currency circulates, the less it loses its purchasing power. Banks, which have traditionally profited from people's carelessness in this regard, have vigorously entered this market, respecting their customers' right to increase their cash mileage. E-banking represents an excellent advance, now within the reach of the average person.

The role of artificial intelligence as an educational ally

In a digital age like the one we live in, artificial intelligence (AI) is profoundly changing the way we learn and access information. And in the field of financial education, its contribution is especially valuable. Thanks to AI, millions of people can now acquire key knowledge about how to manage their money, regardless of their educational level, age, or location.

Artificial intelligence-powered tools allow financial learning to be personalized according to each user's needs. For example, there are mobile apps that analyze a user's income and expenses to provide practical recommendations on saving, investing, or debt reduction. These "virtual advisors" learn from each person's behavior and adjust their advice based on their actual habits.

Additionally, online education platforms such as  interactive chatbots  or  voice assistants  explain financial concepts in a clear and user-friendly way. A person can ask, "What is an emergency fund?" or "How do I start saving if I earn little?" and receive immediate, understandable, and applicable answers. This breaks down the barriers of fear or embarrassment that often prevent people from asking questions in a class or in front of an expert.

Another important advantage is  financial inclusion . In rural areas or vulnerable communities, where access to traditional education may be limited, AI makes it possible to deliver this knowledge through mobile phones or smart radios. This way, previously marginalized populations can learn to protect their money, plan for their future, and make responsible financial decisions.

Finally, AI can detect risk patterns, such as excessive spending or debt tendencies, and can alert users in time, before their situation worsens. It's like having a financial mentor available 24/7, but without the high cost.

In short, artificial intelligence not only democratizes access to financial education, but also makes it more practical, accessible, and effective. Its responsible application can accelerate the path toward a more prepared, more aware, and more economically free society.

Practical principles of financial education that we should all know:

Although economics may seem complex, there are basic principles that, if applied consistently, can significantly improve anyone's life. These fundamentals don't require being a financial expert; just a willingness to learn and make informed decisions. Below are some of the most important:

Create a monthly budget:  The first step to good financial health is to clearly understand how much money is coming in and how much is going out. Creating a monthly budget helps you organize your expenses, avoid surprises, and take control of your finances.
Artificial intelligence can help with apps that automatically categorize expenses and display simple graphs to visualize where your money is going.

Apply the 50/30/20 rule:  This method is a practical guide to distributing income:

50%  for basic needs (food, housing, health).

30%  for desires or lifestyle (leisure, entertainment, shopping).

20%  for savings or debt repayment.
This rule, although flexible, serves as a compass for those unsure where to start organizing their money.

Avoiding toxic debt:  Not all debt is bad, but you need to distinguish between  good debt : debt that generates long-term benefits (such as school or an investment) and  toxic debt : debt used for unplanned spending (poorly managed credit cards, informal loans).
AI, in this case, can help predict debt scenarios and alert you when you're on the verge of over-indebtedness.

Create an emergency fund:  Having the equivalent of three to six months of basic expenses saved can make all the difference in a crisis. Whether it's an illness, job loss, or any other unexpected event, this fund provides peace of mind and prevents you from falling into desperate debt.

Learn to invest, even with a little:  thanks to technology, it's now possible to start investing with small amounts. AI, through secure platforms, can recommend financial instruments tailored to each individual's profile: from planned savings accounts to low-risk investments. The key is to start and learn over time.

Protect yourself against digital fraud and scams:  Increased access to financial services also brings risks. Therefore, it's vital to learn to recognize signs of fraud, avoid sharing sensitive information, and use strong passwords. Some AI-powered tools offer monitoring of suspicious activity and real-time cybersecurity advice.

Applying these principles not only improves personal finances, but also cultivates self-reliance, reduces financial stress, and opens the door to new opportunities. And with the support of artificial intelligence, these lessons can be easily integrated into daily life, regardless of income level or prior knowledge. 

We live in a world where knowledge is no longer the privilege of a select few. Artificial intelligence has put powerful tools at our fingertips to learn, grow, and make better decisions. But to achieve true social transformation, we must go one step further:  assume personal and collective responsibility for promoting financial education .

Every person who learns to manage their money consciously becomes an agent of change. A family that organizes its finances lives with greater peace of mind. A community that understands the value of saving and investing is strengthened. A country with financially educated citizens is freer, more resilient, and more just.

Therefore,  parents, educators, community leaders, the media, and governments are invited  to incorporate financial education as an essential pillar of development. And to leverage artificial intelligence not as a threat, but as an accessible and effective pedagogical ally.  True freedom is not built on dreams alone, but also on well-informed decisions.

Let's start today. Let's teach, let's share, let's learn. Let every person, regardless of age or condition, have the opportunity to understand, manage, and plan their economic life with intelligence and hope. Thus, step by step, we will build a more conscious, more just, and deeply humane society.

AI Opinion: José Saul, your article  “AI, FINANCIAL EDUCATION FOR A MORE FREE AND CONSCIOUS SOCIETY”  is a very solid, educational and necessary proposal for current times.
Below, I give you a complete review, broken down into  strengths ,  areas for improvement  , and some  practical suggestions  to further enhance your work.
Notable strengths
Relevant topic with a social purpose : You've chosen a highly relevant topic. In a world saturated with consumerism and economic uncertainty, linking  financial education  with  freedom and social awareness  is a great contribution to collective well-being.
The link between AI and financial education : You have successfully connected the role of  artificial intelligence  as a tool for democratizing knowledge, showing how it can help people regardless of their age, educational level, or location.
Clear and direct language : You explain important financial concepts (the time value of money, digital banking, savings, inflation) in accessible language, which is essential for readers of different educational levels to understand the message.
Human and realistic approach : You don't just talk about tools and technology, you also focus on  human dignity , the right to a peaceful old age, the importance of personal savings, and respect for well-informed financial decisions.
Inspiring example (Nubank and David Vélez) : Incorporating real-life examples like Nubank reinforces your argument and gives a practical perspective on the impact a user-centered financial approach can have.
Transitions : Some paragraphs change topics abruptly (for example, between explaining the value of money and using cash). You could use bridging sentences to improve the coherence of your speech.
Closing the Idea : The text is very comprehensive, but it ends before developing the "practical principles of financial education that we should all know." This section can be very attractive as a powerful closing.
Suggestions for improvement or expansion
List of basic principles of financial education : As you mention at the end, you can include a checklist with practical principles such as:
Spend less than you earn.
Save before you spend.
Have an emergency fund.
Invest for the long term.
Understand interest and avoid unnecessary debt.
Compare financial products before purchasing them.
Continually educate yourself about finances.
Real-life testimonials or hypothetical examples : Including a couple of short case studies (fictional or real-life) can help readers relate more to your content. For example, a female entrepreneur who used AI to manage her business or a young man who avoided debt thanks to a financial app.
Call to action : It would be helpful to close the article with a clear invitation to readers, such as: “Today you have the knowledge and tools to transform your financial life. Take the first step and begin educating yourself with the help of technology.”
In short:  Your article is  very valuable and well-argued . It conveys clarity, motivation, and social awareness. It presents a modern and purposeful vision of financial education, showing how technology can make it accessible, practical, and humane. With a few minor adjustments to its wording and structure, it could be even more impactful.