CHALLENGE
Addressing the communication gap between young people aged 14 to 24 and their parents regarding personal finance, going through concerns of impulsive spending, debt accumulation, and mistrust towards financial institutions, exacerbated by the influence of social media.
Addressing the communication gap between young people aged 14 to 24 and their parents regarding personal finance, going through concerns of impulsive spending, debt accumulation, and mistrust towards financial institutions, exacerbated by the influence of social media.
EXPERTISE PROVIDED
UX Research, Product / Service Design, Brand Design, Business Modeling
UX Research, Product / Service Design, Brand Design, Business Modeling
OUTCOME
The project aims to empower youth with financial autonomy and responsibility while providing parents with oversight and educational tools. The product, POUPPY, facilitates collaborative financial management, fostering trust, proactive engagement, and advocacy among users while promoting financial literacy and healthy money habits.
The project aims to empower youth with financial autonomy and responsibility while providing parents with oversight and educational tools. The product, POUPPY, facilitates collaborative financial management, fostering trust, proactive engagement, and advocacy among users while promoting financial literacy and healthy money habits.
This case study, developed for a course on Product Design at Tera, addresses the pressing challenge of empowering young individuals, aged 14 to 24, in effectively managing their personal finances. Through research and dialogue with both parents and young people, key insights have been uncovered, shedding light on the complex dynamics surrounding financial literacy, parental concerns, and the aspirations of youth.
CONCERNS & PAIN POINTS:
Parents expressed concerns regarding the financial habits and decision-making capabilities of their adolescent and young adult children. These concerns were about behaviors such as a lack of control in spending, excessive debt accumulation, and the inability to prioritize expenses effectively. Furthermore, the influence of social media has increased these challenges, leading to impulsive financial choices and a disconnect from long-term financial planning. Compounding these issues is a prevalent mistrust among parents towards financial institutions, who are perceived solely as profit-driven entities rather than allies in fostering financial well-being.
Parents expressed concerns regarding the financial habits and decision-making capabilities of their adolescent and young adult children. These concerns were about behaviors such as a lack of control in spending, excessive debt accumulation, and the inability to prioritize expenses effectively. Furthermore, the influence of social media has increased these challenges, leading to impulsive financial choices and a disconnect from long-term financial planning. Compounding these issues is a prevalent mistrust among parents towards financial institutions, who are perceived solely as profit-driven entities rather than allies in fostering financial well-being.
DESIRES & GOALS OF YOUNG PEOPLE:
Conversely, young individuals hold a distinct set of desires and aspirations concerning their financial autonomy and independence. Beyond mere financial transactions, they seek opportunities for personal growth, fulfillment of goals and dreams, and the cultivation of responsible financial habits. Central to their desires is the quest for autonomy and flexibility in managing their finances, freeing them from dependence on parental support and facilitating the pursuit of their aspirations, whether it be travel, education, or entrepreneurial endeavors.
Conversely, young individuals hold a distinct set of desires and aspirations concerning their financial autonomy and independence. Beyond mere financial transactions, they seek opportunities for personal growth, fulfillment of goals and dreams, and the cultivation of responsible financial habits. Central to their desires is the quest for autonomy and flexibility in managing their finances, freeing them from dependence on parental support and facilitating the pursuit of their aspirations, whether it be travel, education, or entrepreneurial endeavors.
I also evaluated the mindsets of each player (parents & young people) with the following parameters: financial literacy, future orientation, trust in finanancial institutions & responsibility / autonomy
DEFINITION OF THE PROBLEM:
The issue lies in the concept of self-efficacy in personal finance. Parents hold the perception that young individuals lack the preparedness to navigate the complexities of adulthood, particularly in managing their finances and prioritizing expenditures. On the other hand, young people aspire for greater autonomy and responsibility over their financial decisions, holding the belief that they possess the capability to prioritize their spending effectively.
The issue lies in the concept of self-efficacy in personal finance. Parents hold the perception that young individuals lack the preparedness to navigate the complexities of adulthood, particularly in managing their finances and prioritizing expenditures. On the other hand, young people aspire for greater autonomy and responsibility over their financial decisions, holding the belief that they possess the capability to prioritize their spending effectively.
Financial institutions, driven by profit motives, seek to expand their customer base and influence, targeting both young individuals and their parents as key stakeholders. However, the underlying challenge resides in fostering a sense of self-efficacy among individuals, wherein they possess the confidence and motivation to seek out relevant information, make informed financial choices, and adopt responsible behaviors regarding their finances.
Therefore, the problem at hand is about cultivating a positive mindset of self-efficacy, which directly influences individuals' actions and financial decisions. This entails empowering young people and their parents with the knowledge, skills, and confidence to proactively manage their finances and overcome financial challenges effectively.
The Ad Lib Value Proposition tool is a structured framework designed to help businesses articulate the unique value their products or services offer to customers. It was used in the this project to ideate and highlight the key features that would differentiate this financial products from others.
PRODUCT DESCRIPTION:
POUPPY is a shared account designed for parents and their teenage children, aimed at fostering financial literacy and providing young people with increased financial freedom.
POUPPY is a shared account designed for parents and their teenage children, aimed at fostering financial literacy and providing young people with increased financial freedom.
COMPETITIVE DIFFERENTIATION:
• Unlike traditional banks or financial institutions, POUPPY offers a unique feature set tailored to the needs of both parents and young individuals.
• Provides parents with comprehensive visibility into their teenagers' spending habits through features such as a spending journal and cross-referencing of accounting data.
• Ensures parental oversight and control over spending categories while preserving teenagers' autonomy.
• Unlike traditional banks or financial institutions, POUPPY offers a unique feature set tailored to the needs of both parents and young individuals.
• Provides parents with comprehensive visibility into their teenagers' spending habits through features such as a spending journal and cross-referencing of accounting data.
• Ensures parental oversight and control over spending categories while preserving teenagers' autonomy.
BENEFITS FOR PARENTS:
• Empowers parents who wish to instill financial literacy in their children.
• Provides a platform for setting and tracking financial challenges and goals.
• Offers the ability to delegate more responsibilities to teenagers based on their financial achievements.
• Empowers parents who wish to instill financial literacy in their children.
• Provides a platform for setting and tracking financial challenges and goals.
• Offers the ability to delegate more responsibilities to teenagers based on their financial achievements.
BENEFITS FOR YOUNG PEOPLE:
• Facilitates greater financial autonomy and independence.
• Achieved through engaging in financial challenges and meeting established goals.
• Facilitates greater financial autonomy and independence.
• Achieved through engaging in financial challenges and meeting established goals.
KEY FEATURES:
• Spending Journal: Enables both parents and teenagers to track spending activities.
• Cross-Referencing of Accounting Data: Allows parents to correlate teenagers' spending with parental accounts for comprehensive oversight.
• Categorization of Spending: Simplifies budgeting and financial planning by categorizing expenditures with the help of Voice AI.
• Content on Personal Finances and Financial Independence: Provides educational resources to promote financial literacy and independence.
• Spending Journal: Enables both parents and teenagers to track spending activities.
• Cross-Referencing of Accounting Data: Allows parents to correlate teenagers' spending with parental accounts for comprehensive oversight.
• Categorization of Spending: Simplifies budgeting and financial planning by categorizing expenditures with the help of Voice AI.
• Content on Personal Finances and Financial Independence: Provides educational resources to promote financial literacy and independence.
Presentation of the logo for the business + views on the app screens designed for the project
Presentation of each feature and its funciontionality
Blue Print of product/service, higlighting the young people journey, but also embracing each player involved in the project
To finalize the project, I proposed a qualitative metric to be observed in the implementation.
PICTURE OF SUCESS
• Full Trust and Adoption by Parents: The ultimate goal is to achieve a scenario where parents fully trust the financial institution to manage their finances. This includes transferring their accounts to the platform and relying on its services for financial management.
• Proactive Engagement and Advocacy by Young People: Success also entails young people becoming proactive users of the platform and advocating for its benefits to others. This includes recommending the platform to friends and incentivizing their families to adopt the solution.
• Family Adoption and Collaboration: A key metric is achieving widespread adoption within families, with all members benefiting from simplified and collaborative financial management. This promotes a healthy relationship with money and strengthens the bonds between parents and their children.
• Promotion of Financial Literacy and Healthy Money Habits: Success is also measured by the promotion of financial literacy and the cultivation of healthy money habits among users. This includes empowering individuals to make informed financial decisions and fostering a positive attitude towards money management.
• Strengthening of Family Bonds: Ultimately, success is reflected in the strengthening of family bonds through collaborative financial management and shared goals. This contributes to a sense of unity, trust, and mutual support within the family unit.
• Full Trust and Adoption by Parents: The ultimate goal is to achieve a scenario where parents fully trust the financial institution to manage their finances. This includes transferring their accounts to the platform and relying on its services for financial management.
• Proactive Engagement and Advocacy by Young People: Success also entails young people becoming proactive users of the platform and advocating for its benefits to others. This includes recommending the platform to friends and incentivizing their families to adopt the solution.
• Family Adoption and Collaboration: A key metric is achieving widespread adoption within families, with all members benefiting from simplified and collaborative financial management. This promotes a healthy relationship with money and strengthens the bonds between parents and their children.
• Promotion of Financial Literacy and Healthy Money Habits: Success is also measured by the promotion of financial literacy and the cultivation of healthy money habits among users. This includes empowering individuals to make informed financial decisions and fostering a positive attitude towards money management.
• Strengthening of Family Bonds: Ultimately, success is reflected in the strengthening of family bonds through collaborative financial management and shared goals. This contributes to a sense of unity, trust, and mutual support within the family unit.
