The rise in the country’s unemployment rate has been a consequence of the pandemic.
Grow Your Business, Not Your Inbox
Stay informed and join our daily newsletter now!
March 2, 2021 4 min read
Opinions expressed by Entrepreneur contributors are their own.
Loss of employment, decreased income and increased expenses are some of the consequences in Mexico of the COVID-19 pandemic . Therefore, to try to balance their personal finances, 59.6% of Mexicans have sought other sources of income , either through a second job or the sale of various items, according to data from the financial services platform, Coru .
In this economic scenario, data from the platform reveal that 63.8% of Mexicans have difficulties to cover their basic expenses for the month , such as the payment of electricity, gas or rent and only 18% of the population can cover all of their spending without major problem, this speaks that the mismanagement of personal finances is a widespread problem in the country.
“The ability to make ends meet depends largely on the balance between income and expenses; However, the current context is extremely complex, as at least 74% of Mexicans have experienced some degree of income decline in the recent 12 months, and with this, good management of personal finances has become a challenge ”, Affirms Fernando González, Partner at QED Investors and CEO of Coru .
From sales to pastries, the options of Mexicans to earn extra money
The rise in the country’s unemployment rate has also been a consequence of the pandemic, according to the National Occupation and Employment Survey (ENOE), the underemployment rate (economically employed population but that has the need and availability to offer more time of work) went from 4.3 million people during the third quarter of 2019 to 8.7 million during the same period of 2020.
This has generated that, in an attempt to increase their income and be able to pay off their payments, Mexicans resort to various activities that range from sales, teaching, baking, cooking, investing, reselling or jobs such as masonry or cleaning work, to generate an extra income.
Inclusion and financial education, the keys to having healthy finances
In addition to income, educational level is also related to the ability to meet expenses each month, since people who have a university degree or higher manage their personal finances more efficiently compared to those who only attended college. basic education.
“The main barriers to financial inclusion are related to the lack of knowledge, understanding and trust in financial services; If these challenges are overcome, the penetration and access of these services will have great scope and will benefit a large number of people who require tools to improve their financial health ”, adds the CEO of Coru.
In this sense, financial inclusion contributes to a better management of finances, since it provides the necessary information for users to know and choose the financial products that best suit their needs and thus be able to potentiate the scope of the options offered. your bank.