The importance of financial education

Published by: Bassam Abu Abbas, Acting Chief Executive Officer, Amman Stock Exchange May 2019

Here at Amman Stock Exchange (ASE), we firmly believe that financial education is becoming ever more critical, not only for investment purposes, but also for improving our day-to-day financial understanding.

Good financial education and literacy goes a long way towards helping individuals decide on important financial choices such as their retirement plans; those with a good knowledge of financial matters will be more likely to save and will also be able to challenge financial service providers to develop products that truly match their needs. Financial education, therefore, has positive effects on both investment levels and economic growth.

Importance of financial education for students

We believe that financial literacy starts with students. For example, if students learn how to handle money, this would help reduce the economic impact of the long-term recession that now grips many communities across the country. In turn, this would have a great impact on their future and improve their chances of achieving financial security.

Financial literacy can also enable students to make responsible decisions involving money. As the investors of tomorrow, financial literacy can help them contribute to the financial ecosystem in a meaningful and informed manner, as well as allowing them to benefit from their investment choices. Therefore, we recommend that students engage in practical activities such as borrowing and spending money, armed with an understanding of what each action entails.

The role of ASE in financial education 

As a financial institution, ASE cares about the financial education of the people of our country, particularly young people. As a result, our strategic plan includes a number of financial literacy objectives focused on spreading awareness among researchers, issuers, brokers and investors of all age groups.

ASE welcomes visits from student delegations, where we introduce them to the financial market, and to the recent technical, legislative and quantitative developments that ASE and the local securities market has witnessed. These visits aim to link the theoretical with the practical, by briefing students on the nature of the work undertaken at ASE, and by introducing them to the most important features of the electronic trading system.

In addition, ASE provides universities with a simulation room to train students on trading securities. The simulation room is equipped with a main server to operate a simulated electronic trading system, so students can enter and follow up orders using a special programme, as well as watch live trading information. This gives students another practical insight into the exchange's operations. We also assist professors and undergraduate students who are conducting research and studies on the stock exchange.

ASE also holds an academic day at different universities and colleges, presenting a live trading session and answering students' questions. Holding this kind of event is aligned with ASE's policy to strengthen its ties with the local community, to encourage a strong investment culture, and to raise financial awareness among citizens and investors.

ASE’s latest news, statistics and data can be found here - www.exchange.jo - or accessed via its Twitter page: @ASEofficialJo.