K&H Financial Competition has been relaunched.
In order to increase financial awareness and develop Hungarian financial culture, K&H will launch its highly successful financial competition again this year, K&H Beware, Ready, Money! For elementary and secondary school teams, the MTI Financial Institution said Monday.
Within ten years, the money stock in Hungary tripled, and holding it meant spending hundreds of billions annually: in August 2011, the money stock in circulation amounted to HUF 2,463 billion, and after five years it had reached HUF 4,473 billion, and by that time August 2021 it exceeded The official level of multinational departure of 7,500 billion HUF according to the data.
At the same time, according to an estimate by the Ministry of Finance in 2019, the Hungarian economy will lose 400-450 billion HUF in revenue due to expenditures related to maintaining the cash stock: if the stock could be halved, the economy would generate more than HUF 200 billion from additional revenue. According to K&H experts, only a small part of the cash portfolio of 7,500 billion HUF is circulating on a daily basis, and it is estimated that two-thirds of the portfolio is in the form of home savings. This is often called money in a pillowcase – it turns out the K&H assembly.
Many electronic banking services, including online and mobile bank transfers and card purchases, already play an important role in everyday banking. It is good, they wrote, that the latter has achieved significant growth in the past ten years in parallel with the growth of the money stock.
For example, the volume of purchases of local bank cards issued in Hungary amounted to 722 billion HUF in the first half of 2011, compared to 1.607 billion Swiss francs in the same period in 2016. In the first six months of 2021, it amounted to 4,216 billion Swiss francs. Hungarian forint. Thus, the volume of business in this field has increased sixfold in ten years. The emergence of bank cards and contact payments played a major role in the significant increase in card traffic.
The financial awareness of the population plays an important role in curbing the cash flow. According to an international comparative analysis of the Organization for Economic Co-operation and Development (OECD) covering 26 countries, digital financial skills and their applications are associated with higher levels of financial literacy. In this – by international comparison – Hungary is in the middle.
K&H seeks to further enhance financial awareness and develop the Hungarian financial culture through the relaunch of K&H, which aims to improve the financial awareness of young people. Financial test, where they try to expand the financial knowledge of participating teams of 3-5 people with practical tasks, such as family budgeting and interest calculation.
“As part of K&H corporate social responsibility, the competition was launched in 2010, and since then the program has grown exponentially. Nearly 15,000 teams have participated in the competition so far. The number of entries has increased tenfold since its launch: Nora Horvath Magiari said, Head of Communications at K&H Group said in the statement that 1,500 teams last year despite the pandemic situation hope that this number will be higher this year.
