Financial Education Special focus on

Children YOUTH &

New Report

Foreword Finance is an important part of life and unfortunately, many children and youth do not fully understand it yet: 99% of children and youth are still without access to formal financial services. This is an astonishing fact, considering that 32.1% of the global population is below the age of 18 years old.

Jeroo Billimoria Managing Director Child and Youth Finance International

Still too many people, and particularly young people, lack basics to know and understand how to make good decision about personal finance. Clearly education is essential to any effort to improve financial literacy. Balanced Financial education in combination with life skills education is particularly important in the current financial context. It will help future adults to understand how to acquire, manage, and develop resources best fitting their needs and interests and it facilitates opportunities to increase the economic performance of their households. It is important that this financial inclusion is linked with financial access to allow children and youth to put into practice what they are learning and begin their first steps within the financial systems. As Europe struggles to recover from the negative effects of the current economic and financial crisis, the future of the European economic stability is in jeopardy if we don’t give tomorrow’s adults the ability to manage their own finances. Our dream is that, eventually, every child and youth will have access to safe and reliable financial services, financial awareness through education, a reliable source of income and the will to save and build assets to promote his or her future in a sustainable way. The right for children and youth to access education about money and resources, and the right to access financial services remains a key set of rights that should be guaranteed. Our objective is ensuring that 100 million children in 100 countries benefit from safe and reliable financial access and a holistic financial education by 2015. To that end, the Child and Youth Finance International Movement encourages the creation of systems in which the needs and interests of children and youth are pushed to the forefront, in which children and youth are recognised as important stakeholders whose financial safety must be secured, and in which their risks of financial exploitation are minimized. I therefore welcome and value the European Banking Federation’s involvement in initiatives and projects promoting financial education, as well as the commitment of many individual financial institutions to support our goals. In that perspective, the EBF Financial Education report provides a comprehensive overview of programs implemented by National banking associations and banks in the field of financial education. The emerging collaboration between financial institutions, banking networks, the social sector, and government bodies is essential to boost child and youth finance in Europe. This report represents an interesting contribution, which could ultimately benefit children and youth.

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Table of Contents I.

THE IMPORTANCE OF FINANCIAL EDUCATION WITH A FOCUS ON CHILD AND YOUTH

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II.

EBF APPROACH

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III.

INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION

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A.

International background on financial literacy 1. The Organisation for Economic Co-operation and Development 2. The World Bank 3. The United States’ Financial Literacy and Education Commission 4. G20 Leaders

8 8 11 12 13

B.

European background on financial education 1. The initiatives taken by the European Commission on financial education 2. Initiatives taken by the European Parliament and the Council 3. The European Economic and Social Committee (EESC)

14 14 16 17

IV.

OUTLINE OF THE INITIATIVES TAKEN AT NATIONAL LEVEL BY EBF MEMBERS AUSTRIA BULGARIA CROATIA CYPRUS CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY LIECHTENSTEIN LITHUANIA LUXEMBOURG MALTA THE NETHERLANDS NORWAY POLAND PORTUGAL ROMANIA SOVAKIA SLOVENIA SPAIN SWEDEN SWITZERLAND UNITED-KINGDOM

18 19 20 21 22 23 24 26 28 29 33 35 36 39 41 44 46 47 49 50 51 52 53 60 62 65 68 70 71 73 3



I.

THE IMPORTANCE OF FINANCIAL EDUCATION WITH A FOCUS ON CHILDREN AND YOUTH

Financial literacy is a central issue to today’s complex financial world as it gives consumers an understanding of how to manage their finances and avoid unnecessary risks, excessive debt and possible financial exclusion. Importantly, it enables people to improve their understanding of the financial opportunities that the products and services available may offer. The EBF believes that the importance of financial education has never been more apparent that in today’s climate of financial and economic downturn. It takes on a new relevance and a deeper meaning as part of the overall action undertaken by banks to restore consumer confidence and promote best practices. This said, the issue has been on the agenda of numerous stakeholders long before many others, such as banks, consumer organisations, European and global institutions, to name but a few, have undertaken initiatives to support projects to increase awareness. It is clear to market players that an important number of consumers have difficulty in evaluating their options, for instance, on the credit market. Or, indeed, when they take up a pension plan or a life insurance. At the same time, several surveys also show that consumers often overestimate their understanding of financial issues, which may easily lead them to make the wrong choice. In the context of the crisis, this outcome has proved more true than ever before. The crisis has highlighted the need to improve consumer literacy, awareness, and ability, further, and illustrated how wrong decisions can lead to dramatic levels of over-indebtedness. Some analysts have stressed that part of the crisis was owing to low levels of financial literacy. Or at least, that these low levels have been strong aggravating factors. Awareness of financial education’s key role - in particular for young people - is gaining momentum among policy makers and has achieved international recognition in economies worldwide as a critical life skill. Helping young people understand financial issues is an efficient and reasonable way to reach a whole generation on a broad scale. It is also a unique means to inculcate and nurture a more sound financial culture and behaviour amongst future adults. Furthermore, the younger generations are likely to face ever-increasingly complex financial products and services. As a result citizens should be educated about financial matters as early on as possible. Children in Europe make up approximately 28,15 % of the population. A lot of initiatives are therefore going on at all levels: international, European and national. Although they are described more in depth in the next chapter, it is worthwhile mentioning some of them in the general introduction. First, the Organisation for Economic and Cooperative Development (OECD) and its International Network on Financial Education (INFE) provide an important forum for governments to exchange views and experiences on this issue. With regards to young people, the OECD is notably testing 15 year-olds on their knowledge of personal finances and ability to apply it to their financial problems. This is the first large-scale international study to assess the financial literacy of young people. The results will be published at the end of 2013 or early 2014.

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I. At European level, the European Commission also launched several workstreams on financial education. A high-level conference took place, as well as a survey and the publication of a Communication, all in 2007. An Expert Group (in which some bankers participated directly) was set up afterwards and met 6 times until 2010 without really drawing comprehensive conclusions and recommendations. The EBF regretted this, although the EBF has to acknowledge the limited powers of the Commission in this field, as education is an area for national competency. It is also worthwhile mentioning the new 2010 module of DOLCETA – the online financial literacy tool for consumers – which is specifically dedicated to teachers to facilitate the provision of financial education in primary and secondary schools. The European Banking Authority (EBA) has included a specific part on financial education in its 2012 workplan. Indeed, financial education has been identified within the EBA’s area of competency in terms of reviewing and coordinating financial literacy and educational initiatives by the competent authorities.

THE IMPORTANCE OF FINANCIAL EDUCATION WITH A FOCUS ON CHILDREN AND YOUTH

The G-20 leaders have also recently endorsed the OECD/INFE High-level Principles on National Strategies for Financial Education in Mexico, June 2012. This important endorsement proves that financial education has become an important complement to market conduct and prudential regulation, and that improving individual financial behaviour has become a long-term policy priority in many countries. In this respect, the establishment of coordinated and tailored strategies at national level has been widely considered to be one of the best means to achieve these efficiency goals while avoiding duplication of resources and efforts.

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II. EBF APPROACH The EBF also takes the view that levels of consumer over-indebtedness may be reduced if consumers are given the opportunity to learn basic financial skills. As such, the European Banking Federation does not play a direct role in financial education initiatives, since it does not actually address consumers, but the EBF takes it as its responsibility to highlight the work carried out by its national member associations, many of which have been active in developing financial education initiatives. The EBF thus hopes to contribute to raising awareness, helping develop and exchange best practices and establishing a self-regulatory approach where possible. As part of this role, a few years ago, the EBF published a special report in 2009, entitled “Financial Literacy – Empowering consumers to make the right choices”. Given the importance of financial education for young people, the decision was taken to update this report with a special emphasis on financial education for children and youth. In this context, the EBF is co-organising the first Child and Youth Finance International European regional summit on 6 and 7 November 2012. The event aims at gathering experts, practitioners and public authorities from within Europe and Central Asia who are engaged in the issues of financial access and financial education for children and youth At the same time, this issue has been on the agenda of many individual banks and national banking associations long before the financial crisis reared its ‘unsightly head’. The banking sector has long been a keen advocate of promoting financial awareness as a means of empowerment to the consumer. Well informed consumers make well informed decisions, and this is every consumer’s right and responsibility. Each of us, as consumers should ensure that we are properly informed before entering into any contractual agreement with a financial institution. There are two approaches to this. First and foremost, banks clearly have an obligation to provide clear and complete information to their customers. In fact, the EBF fully supports the views of consumer organisations that the presence of financial education should not relieve banks from their information duty, including warnings of possible risks involved. The EBF insists that they are different but complementary issues. Secondly, the EBF further believes that helping people understand and manage their finances is helping them make informed decisions in their daily life. The role of the Federation’s work on financial education is, inter alia, to highlight the task carried out at national level by many national banking Associations, who have put in place a number of valuable educational projects with the aim to disseminate financial literacy at all levels of society. The EBF aims to take stock of the current situation in each Member State and stimulate and enhance future policies, thanks to the exchange of best practices. This EBF work is also undertaken in the context of its corporate social responsibility to society, as a federation, representing some 4,500 financial institutions throughout 31 countries.

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They are a multitude of initiatives taken by national banking associations and banks: from websites that teach basic skills in financing, targeted at 5 to 7 year olds; games aimed at teaching high school students how to create and run a business; specific TV and radio broadcasts; university level education and schemes, and broad-based information campaigns.

The EBF is also aware that different aspects of the financial education question are related to the specific Member State national context (culture, language, education system, consumers’ habits).

II. EBF APPROACH

The report also further highlights a number of concrete best practices, dedicated to children, and young people. The report does not exclude other good practices, simply it is impossible to list them all. It should be noted that in the EBF’s opinion, all of them demonstrate that the banking sector is a reliable partner on issues of financial literacy.

With particular regard to young people’s financial education, the EBF believes that the main role has to be played by individual Member States and their respective education policies. Teaching children about money should begin in primary school with basic arithmetic, before teenagers learn about the potential risks associated with loans and credit cards at secondary school. The EBF believes that equipping young people in their formative years with the basics of financial education can give them the knowledge, skills, and confidence they need to manage their finances as adults. The successful integration of financial education at all levels, but particularly in school curricula proves to be challenging in many respects, owing to a vast range of constraints: these include: lack of resources and time, already packed curricula, insufficient expertise, and know how; lack of quality materials, the variety of stakeholders involved and sometimes the lack of a strong and sustainable political willingness, commitment and overall accountability. The only way to succeed is therefore to work all together. The EBF is of course committed to supporting continuous efforts in this sense.

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III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION A.

International background on financial literacy



1. The Organisation for Economic Co-operation and Development

The Organisation for Economic Co-operation and Development (OECD) published in March 2008 a set of recommendations on good practices for financial education relating to private pensions and insurance issues1. This publication followed the recommendations on more general principles released in 20052. - On 5 September 2011, draft guidelines on financial education at school and guidance on learning framework were published3. - On 28 November 2011, the OECD/ International Network on Financial Education (INFE) published OECD-Bank of Italy Symposium on Financial Literacy: Improving financial education efficiency. It examines three aspects of financial education: a) monitoring and evaluation use of behavioural economics; b) financial literacy; and c) defined contribution pension plans. -On 23 December 2011, the OECD INFE published a questionnaire: Measuring Financial Literacy: Questionnaire and Guidance Notes. This document provides national authorities and other interested bodies with a core questionnaire that can be used to survey levels of financial literacy. It further contains detailed guidance on how to implement such a survey. This questionnaire is available to public authorities and other interested bodies that wish to gather baseline information on levels of financial literacy; to measure financial literacy within their country; and, to undertake comparisons with other countries. The questionnaire gathers information on the population’s attitude towards financial matters as well as their behaviour and knowledge. Questions cover a wide range of relevant topics such as budgeting and money management, saving and long-term planning and the use of financial products. The document also proposes a methodology to ensure cross-country comparability, and provides guidance on important considerations when commissioning a national survey. The annex offers suggestions on how to brief interviewers in preparation for the fieldwork. - On 10 January 2012, the OECD/INFE published high-level principles for the evaluation of financial education programmes. The principles provide policy makers, programme designers and other stakeholders with information on the importance of monitoring and evaluating financial education programmes. They cover a wide variety of financial education provisions, from individual courses and seminars to large scale programmes and media campaigns. - The OECD/INFE has developed a survey instrument that can be used to assess individuals’ financial literacy from very different backgrounds in a wide range of countries. - On 8 March 2012: the Organisation for Economic Cooperation and Development and the International Network on Financial Education (OECD/INFE) published its 14th working paper on Finance, Insurance and Private Pensions: Empowering Women Through Financial Awareness and Education. This paper describes the findings of the literature review on gender differences in financial literacy, with the aim of understanding their causes and consequences more fully, as well as possible policy responses.

http://www.oecd.org/insurance/privatepensions/40537843.pdf Recommendation on Principles and Good Practices for Financial Education and Awareness, July 2005: http://www.oecd.org/daf/financialmarketsinsuranceandpensions/financialeducation/46193218.pdf .

1 2

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http://www.oecd.org/finance/financialeducation/48493142.pdf

- On 29 March 2012 A set of supplementary questions was published. These are tried-and-tested questions, across a range of relevant topics, which can be used in addition to the core questionnaire, to provide more detail at national level. - On 29 March 2012 the results of the OECD/INFE financial literacy measurement pilot, available as a working paper, were also published: Working Paper on Finance, Insurance and Private Pensions No. 15: Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study. The paper focuses on variations in financial knowledge, behaviour and attitude across 14 countries on 4 continents. It also explores differences in levels of financial literacy by socio-demographics within each of the countries. The results highlight a lack of financial knowledge amongst a sizeable proportion of the population in each of the countries surveyed. Furthermore, there is considerable room for improvement in terms of financial behaviour. Attitudes are shown to vary widely. These results will enable countries to identify needs and gaps in financial education provision, and develop national policies or strategies. They also provide a sound basis for developing OECD recommendations and principles. - On 20 April 2012, ‘Current Status of National Strategies for Financial Education – A Comparative Analysis and Relevant Practices’ was published. This promotes a smoother and more sustainable co-operation between interested parties and stakeholders, advises on how to avoid duplication of resources, and shows how to allow the development of articulated and tailored roadmaps with measurable and realistic objectives based on dedicated national assessments. The experiences analysed in this report provide a global picture of the situation in 2011/12 and a selection of relevant solutions and tools to use to address these issues in a replicable way. This comparative report should be seen as a background document and as a complement to ‘High-level Principles on National Strategies for Financial Education’ prepared by the OECD and its International Network on Financial Education (INFE). -In April 2012, the OECD published PISA 2012 Financial Literacy Assessment Framework. PISA 2012 is the first large-scale international study to assess the financial literacy of young people. PISA assesses the readiness of young people for their life beyond compulsory schooling, and in particular their capacity to use knowledge and skills, by collecting and analysing cognitive and other information from 15-year-olds in many countries and economies. It is thus able to provide a rich set of comparative data that policy makers and other stakeholders can use to make evidence-based decisions. - On 10-11 May 2012 in Madrid the Organisation for Economic Cooperation and Development and the International Network on Financial Education (OECD) and the Spanish Ministry of Economy and Competitiveness, organised a Conference on Financial Education Challenges Ahead: Turning Policy Guidance into Efficient Practices. It brought together experts from around the world to share their experiences in implementing national strategies for financial education and combining consumer protection and education to support households’ financial wellbeing.

III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION

The review provides a starting point for collecting additional evidence, developing analytical work and case studies, and identifying areas that deserve further research. As such, it paves the way for future work to be developed by the OECD and the INFE. A relatively broad range of empirical literature, documents the existence of gender differences in financial literacy, in various countries and varying dimensions. On average, women perform less well than men on tests of financial knowledge and have less confidence in their financial skills. And yet, policy awareness of the existence and relevance of these differences is quite low. In this context, the contribution of improved and targeted financial education programmes aimed at addressing women’s needs more effectively is promising and worth exploring further.

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III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION - On 1 July 2012 ‘Financial Education, Savings and Investments - An Overview’ was published. It showed that there are considerable barriers to saving, including limited access to financial markets by some groups, complexity of financial products and information asymmetries. Knowledge and understanding of saving and investment concepts is particularly low in many countries. In addition, there are behavioural and cultural factors which may limit people’s propensity to save. As a result, policy makers have developed several strategies to influence whether and how individuals save. Policy responses typically involve a combination of prudential regulation and consumer protection legislation, financial incentives, financial education and awareness initiatives, as well as behavioural techniques to encourage people into well-grounded saving decisions. - The OECD/INFE also works on ‘Guidelines for Financial Education in Schools’4, which stand as a tailored supplement to the ‘Recommendation on Principles and Good Practices for Financial Education and Awareness’, adopted by OECD governments in 2005. These Guidelines are aimed at providing high-level international and non-binding guidance to assist policymakers and interested stakeholders in designing, introducing and developing efficient financial education programmes in school. Depending on the structure of educational systems at local, regional or national levels, the Guidelines apply to school programmes starting from kindergarten until the end of official schooling. Once finalised through this process and agreed on by the INFE and OECD Committees, these revised guidelines and accompanying guidance in Annex (the ‘Guidelines and accompanying Guidance on Learning Framework’) will be transmitted to the OECD Council, to be endorsed as an OECD Recommendation or other types of instrument as appropriate. - In the perspective of the PISA 2015 Financial Literacy Assessment, the OECD is testing 15 year-olds on their knowledge of personal finances and ability to apply it to their financial problems. The results will be published in the next PISA study, due for release end-2013 or early-2014. Sixty-five countries or regions are taking part in this PISA test which will focus on testing mathematics literacy. Students from 18 of these countries will also tackle problems related to financial literacy: Australia, Belgium (Flemish Community), ShanghaiChina, Colombia, Croatia, Czech Republic, Estonia, France, Israel, Italy, Latvia, New Zealand, Poland, Russia, Slovak Republic, Slovenia, Spain and United States. Aspects of financial literacy that will be tested include: dealing with bank accounts and credit/debit cards; planning and managing finances; understanding taxes and savings; risk and rewards; consumer rights and responsibilities in financial contracts.

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http://www.oecd.org/finance/financialeducation/48493142.pdf

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2.

The World Bank

- In November 2010 the World Bank launched a ‘Global Program on Consumer Protection and Financial Literacy’: The objective is to help countries achieve concrete measurable improvements in consumer protection in financial services. The ‘Global Program’ focuses on four areas: o making financial information easy to understand and comparable so that consumers can shop for the best deal; o improving business practices to ensure that abusive and predatory practices are prohibited, and intermediaries are regulated; o giving consumers a way to get quick and easy redress when their financial institutions have made a mistake; o helping consumers learn to use financial services with confidence. The ‘Global Program’ brings together both public and private sector agencies - financial supervisory agencies, industry associations and consumer organisations - to find the best solutions for each country. The ‘Program’ focuses on three types of financial services - credit, savings and payments systems - and looks for ways to strengthen consumer rights and consumer education for each. - In June 2012, the World Bank launched a ‘Financial Literacy around the World: An ovierview of the Evidence with Practical Suggestions for the Way Forward’5. This paper collects insights from the literature thus far and summarises global evidence on financial literacy.The authors conclude with a synthesis of policy advice and practical suggestions for the way forward in this fast growing area of research. - In 2012-2013, the World Bank in cooperation with the ‘Global Partnership for Financial Inclusion’ (GPFI) should deliver further tools to promote financial education, with a progress report to be submitted to the next Summit, St. Petersburg in 2013. To advance the financial consumer protection agenda, the G20 takes note of the discussion on the ‘Statutes of the International Financial Consumer Protection Network’ (FinCoNet) and on the issues of formal structure and financial support to ensure the exchange of best practices.

III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION



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III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION

3.

The United States’ Financial Literacy and Education Commission

An Advisory Council on Financial Literacy was established in 2007 in the US - reporting directly to the President - with the aim of focusing on expanding the American citizen’s access to financial services, and increasing financial education in schools and in the workplace. The Council is also due to liaise with the 20 federal agencies gathered within the Financial Literacy and Education Commission led by the Treasury Department. - In 2010, the Financial Literacy and Education Commission (FLEC), which is chaired by the Secretary of the U.S. Department of the Treasury and composed of 22 other Federal entities, developed a new national strategy to promote financial literacy and education: Promoting Financial Success in the United States: National Strategy for Financial Literacy 2011 This national strategy was created through a process that included exchanges with private, public, and nonprofit representatives from the field. It identified four goals: 1. increase awareness of and access to effective financial education; 2. determine and integrate core financial area of competency; 3. improve financial education infrastructure; and 4. identify, enhance, and share effective practices. Under the Financial Literacy and Education Commission (FLEC) the newly-created (2011) United-States Consumer Financial Protection Bureau is the nation’s first federal agency, focused solely on consumer financial protection. - On 19 January 2012, the Consumer Financial Protection Bureau (CFPB) invited the general public and other Federal agencies to comment on a proposed information collection to identify financial education strategies that are effective in educating consumers to make better informed financial decisions. - The Office of the Comptroller of the Currency’s Financial Literacy Web Resource Directory provides information about financial literacy programmes in which US banks might wish to become involved. - MyMoney.gov is a government website dedicated to the basics of financial education. It serves as the onestop shop for federal financial literacy and education programmes, grants and other information. In addition the ‘1-888-MyMoney’ is the federal government’s toll-free hotline accessible to the public seeking information about federal financial education materials. - On 16 July 2012, the Consumer Financial Protection Bureau (CFPB) adopted a rule to begin supervising larger consumer reporting agencies, which include, what are popularly called credit bureaus or credit reporting companies. This is the first time these companies will be supervised at the federal level. - On 30 July 2012, the Consumer Financial Protection Bureau releases report showcasing 2012 highlights: mentioning notably consumer engagement, financial education, research, regulation, supervision and enforcement. Through innovative technology and education, the CFPB has developed tools designed to empower consumers to make responsible financial decisions. With its ‘Know Before You Owe’ campaign, the CFPB is working to make mortgages, credit cards, and student loans easier to understand. The Bureau has also developed “Ask CFPB”, an interactive online database answering questions frequently asked by consumers. Furthermore, it has made a database of the individual complaints on financial products received, available to the public. Consumers can review and analyse the complaints and draw their own conclusions. 5

http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2012/06/27/000158349_20120627090058/Rendered/PDF/WPS6107.pdf

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4.

G20 Leaders

On 18-19 June 2012, at the Summit in Los Cabos, G20 Leaders mentioned in their Declaration that reforming the financial sector and fostering financial inclusion was one of the priorities. On financial education, the G20 endorsed the OECD/INFE High-Level Principles on National Strategies for Financial Education. The G20 leaders’ endorsement proves that financial education has become an important complement to market conduct and prudential regulation, and that improving individual financial behaviour, has become a long-term policy priority in many countries. They also endorsed the Action Plan presented by the G20/OECD Task Force on Financial Consumer Protection to develop effective approaches to support the implementation of the High-Level Principles on Financial Consumer Protection, and look forward to an updated report by Leaders at the Summit in St. Petersburg in 2013. In addition, the G20 recognised the need for women and youth to gain access to financial services and financial education. Leaders requested the GPFI, the OECD/INFE and the World Bank, to identify the barriers women and youth might face, and called for a progress report to be delivered ahead of the 2013 Summit.

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For more information: http://www.treasury.gov/resource-center/financial-education/Pages/default.aspx .

III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION

- In August 2012, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (‘Dodd-Frank’) established the Office of Financial Education (‘OFE’)6 within the Bureau of Consumer Financial Protection (CFPB) to develop and launch initiatives to educate consumers and help them make more informed financial decisions. The CFPB’s OFE seeks public comment on effective financial education approaches, including tools, topics, and dissemination strategies which will help improve consumers’ financial decision-making capabilities.

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III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION B.

European background on financial education

The issue of financial education was already on the agenda of both the European Commission and Member States before the advent of the credit crisis in the summer 2007, but has not been addressed comprehensively until recently. Policies have thus far been shaped with more immediately rewarding objectives in mind, such as better financial information for consumers and consumer protection. The importance of good financial education has been acknowledged at EU level. In the report on ‘A Single Market for 21st Century Europe’7 the European Commission presented financial education as an essential component of its efforts to ensure that the Single Market can bring direct benefits to Europe’s citizens. More particularly, it will enable citizens to understand certain essentials in personal finance, over and above shopping around for the best services, in their own Member State, or cross-border. This said, the EU powers in this field are limited. Although the subject has clear financial implications and a direct impact on the Single Market, it is still a matter of education policy, and thus falls within the competence of each Member State. The topic has been strongly emphasised as one to be tackled in order to build up consumer confidence and boost the internal market both by the Directorate General for Health and Consumer Affairs’ (DG SANCO) and the Directorate General for the internal Market and Services’ (DG MARKT) in the initiatives under the Single Market Review.

1.

Initiatives taken by the European Commission on financial education

The Conference on ‘Increasing Financial Capability’ hosted by the European Commission on 28 March 2007 in Brussels, was the occasion for launching a wide debate on the issue. The aim of the conference was to provide a forum for an exchange of best practices that could be recommended to the Member States for implementation into their national education systems; and to encourage the provision of high-quality financial education to consumers. The conference highlighted that Member States have a key role to play, particularly with regard to the inclusion of financial issues in the education curriculum. The various presentations illustrated that much is being done in the EU to empower consumers to make appropriate financial decisions. Nonetheless, there was wide acknowledgement that much more progress needs to be made. On 18 December 2007, the Commission issued a Communication on financial education8 in which it sets out the economic, societal, and personal benefits of increased financial literacy, and gave an overview of the provision of financial education in the European Union (EU). In August 2008, DG MARKT set up an Expert Group on Financial Education (EGFE). It was made up of public authorities and private stakeholders (national authorities, the financial industry, consumer associations, academia, etc.) with relevant areas of know-how and practical experience9. The group includes some EBF representatives from the member Associations. Their mandate is to bring and share best practices developed at national level, in the field of financial education; in addition, to advise the Commission on possible solutions to be adopted in order to deal with difficulties identified at EU level. The ambition of the expert group is to discuss and share information and experiences and acquire knowledge of as many methods of financial education as possible10. In January 2009, a dedicated database was also set up. COM(2007)724, SEC(2007)1520 http://ec.europa.eu/internal_market/finservices-retail/docs/capability/communication_en.pdf 9 List of Members of the Expert Group on Financial Education (EGFE): http://ec.europa.eu/internal_market/finservices-retail/docs/capability/members_en.pdf 10 The group met a total of 6 times over the next 3 years. The first meeting of the EGFE took place the 7 October 2008 in Brussels. 7 8

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The EGFE’s three-year mandate came to an end in June 2011, following the staff working document on the review of the initiatives of the European Commission in the area of financial education, published, March 2011. With regard to EU level initiatives, the Commission has already set up a website, DOLCETA12, which is mainly focused on consumer financial education content for adults. The Consumer Programme 2007-2013 foresees actions under Objective 2 dedicated to consumer education. This procurement procedure concerns the launch of a new Framework Contract for the management and enhancement of the DOLCETA consumer education website, dissemination activities, and development of new education modules as foreseen in the 2010 Work programme: New DOLCETA financial literacy module for teachers13. Another initiative is the ‘Europe Diary’, a booklet distributed especially to secondary level students, educating them on their rights as consumers, and on money and debt management. In October 2011, on the request of DG SANCO, ECORYS published a study on the Evaluation of Consumer Education, Information and Capacity Building Actions. On 22 May 2012, the European Commission published a communication entitled: A European Consumer Agenda - Boosting confidence and growth14. Built around four main objectives the European Consumer Agenda aims to increase confidence by: reinforcing consumer safety; enhancing knowledge; stepping up enforcement and securing redress; aligning consumer rights and policies to changes in society and the economy. It also presents a number of key actions to be implemented between now and 2014. The new European Consumer Agenda replaces the Consumer Policy Strategy 2007-2013. As announced in the Consumer Agenda, a platform to facilitate dialogue and best practice exchanges, covering both consumer education materials and teaching practices will be published online in 2013. A needs’ analysis among teachers in the Member States is guiding the development of this platform. The financial education materials compiled in the European Database for Financial Education will be integrated into this new community site for teachers, as will Europa Diary materials and materials on media literacy15. In addition, enhancing consumer education is part of the European Commission’s proposal on a consumer programme 2014-202016.

11 The EDFE will be a living database, open for updates and submission of information about new schemes on a continuous basis: http://ec.europa.eu/ internal_market/fesis/index.cfm 12 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008DC0397:EN:NOT 13 http://www.dolceta.eu/united-kingdom/Mod4/ 14 Communication from the Commission to the European Parliament, the council, the economic and social committee and the committee of the regions - A European Consumer Agenda - Boosting confidence and growthCOM(2012) 225 final: http://ec.europa.eu/consumers/strategy/docs/consumer_agenda_2012_en.pdf 15 Commission staff working document on knowledge-enhancing aspects of consumer empowerment 2012 - 2014 16 Proposal for a regulation of the European Parliament and of the Council on a consumer programme 2014-2020 COM(2011) 707 final http://ec.europa.eu/ consumers/strategy/docs/proposal_consumer_programme_2014 2020_en.pdf

III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION

The European Database for Financial Education (EDFE)11 contains information on existing national financial education schemes, surveyed in 2007 at EU level. It invites all types of providers to submit new schemes and serves as an ‘electronic library’ of financial education projects. The various schemes can be searched following criteria including: geographical base, content areas, target audience, method of delivery and instruments used, and contact details of the providers. Each entry contains a brief description of the scheme, some basic standard characteristics as well as links to the website and contact details of the provider.

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III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION 2.

Initiatives taken by the European Parliament and the Council

a.

The European Parliament

In response to the 2007 Commission’s Communication on Financial Education, the European Parliament (EP) adopted, in November 2008, its own-initiative resolution. The resolution is a non-legislative measure which inspired the Commission initiative. No actions other than voluntary initiatives have been solicited so far from the industry. The EP welcomed the Commission proposals in the field of consumers’ financial education. In particular, the Expert Group on Financial Education (EGFE) and the online database of financial education schemes and research in the EU (see above). The EP emphasises that financial education cannot be a substitute for coherent consumer protection provisions in financial services’ legislation, nor in the regulation and strict supervision of financial institutions. The EP further stresses that financial education should be offered in a fair, unbiased and transparent manner, so as to serve the interests of the consumer, and that it must be clearly distinguished from commercial advice or advertising. In order to achieve this goal it encourages financial institutions to develop codes of conduct for their staff. In November 2011, the European Parliament adopted a resolution17 on a new strategy for consumer Policy. The resolution highlights the crucial role of financial education and the importance of access to financial education and financial advice, and calls for better regulation of financial advisory services. b.

The Council of the European Union

In 2005, the European Council of Ministers also mentioned the key role of education in a range of documents, thereby putting peer pressure on Member States to adopt effective measures to improve financial awareness. By way of example, the introduction of new pension systems in Member States - making employees responsible for investing independently part, or all of their retirement money - brought up the issue of financial education. For many years, the issue of financial education was raised during Council meetings in order to urge Member States to step up their efforts to raise, significantly, households’ awareness on their need for information and education. In this respect, the adoption in April 2008 by the European Parliament (EP) and the Council of a revised EC Directive on credit to consumers18, which provides a certain degree of standardisation of information on consumer credit, can be regarded as an example of the EU legislator’s concern to increase the level of consumer information on financial services and make it easier for consumers to compare different offers. Such a goal clearly requires consumers to be enabled to handle the information they receive and assess its impact on their individual financial situation.

18 Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/ EEC, OJ L133/6 of 22.05.2008.

http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/intm/132794.pdf

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3.

The European Economic and Social Committee (EESC)

- On 9 June 2011 the European Economic and Social Committee together with the Austrian Federal Chamber of Labour organised a hearing on financial education and the responsible consumption of financial products in Austria. Key stakeholders were invited, and contributed to an exchange of best practice examples and a lively discussion. - On 14 July 2011, the EESC published an opinion: Financial education and responsible consumption of financial products. The European Economic and Social Committee (EESC) stated that financial awareness should be improved through education, which should especially be reinforced in school curricula. Given the fragile position of the retail consumer, the complex financial instruments and the occasional misbehaving of the financial sector, supporting the needs of financial-product users should be the mainstream approach. It is the responsibility of decision-makers and stakeholders to inform and educate consumers properly on financial products. - On 4 October 2012, the EESC in its opinion on the ‘White paper - An agenda for adequate, safe and sustainable pensions’, encourages the Commission to follow through on its intention to use part of the European Social Founds during the 2014-2020 programming period to support projects aimed at the employment of older workers or at promoting a longer working life. Also meriting support are educational projects aimed at increasing workers’ financial literacy, especially with regard to retirement planning. The Committee believes that the social partners and other civil society organisations, alongside other public bodies, have a key role to play in promoting such projects.

European Parliament resolution of 15 November 2011 on a new strategy for consumer policy (2011/2149(INI)): http://www.europarl.europa.eu/sides/ getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2011 0491+0+DOC+XML+V0//EN 17

III. INTERNATIONAL AND EUROPEAN INITIATIVES ON FINANCIAL LITERACY AND EDUCATION

In addition, following the publication of the European Communication on the European Agenda, on 11 October 2012, the Council adopted a resolution19. Notably, it endorses the Commission’s vision for a consumer policy in the years to come. Chiefly, the comprehensive nature of the approach of the European Consumer Agenda, built around the four key objectives, including enhancing knowledge through targeted consumer information and education as well as effective support to consumer organisations. The Council invites, therefore, the Commission and Member States to work efficiently together to ensure the rapid implementation of the Agenda.

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IV. OUTLINE OF THE INITIATIVES TAKEN AT NATIONAL LEVEL BY EBF MEMBERS National authorities, along with the banking industry and consumer organisations, have an essential role to play in initiatives for financial education. In fact, while national authorities (government ministries, financial supervisors, central banks etc.) are the drivers of programmes in the EU Member States, it is true that in every EU country, financial education is provided by a wide variety of actors, ranging from financial supervisory authorities to adult literacy agencies, industry associations, microfinance organisations, consumer representatives, education authorities, individual financial firms, housing authorities, non-governmental organisations and others. EBF members (national banking associations) are natural partners of national authorities and other private stakeholders in their respective countries, and contribute, either as co-operators or as leaders, to the performance of numerous projects. The development of financial education provision may appear more present in certain EU Member States than in others. Nonetheless, for the majority of them the most common subject in educational programmes is generally ‘money basics’ (e.g. how to use a bank account). This is followed up by budgeting skills, including managing credit and debt. The issues of investment, saving and retirement, insurance and risk management feature less highly, indicating that these may be areas requiring greater attention in the future. There is an even split in the profile of the target audiences, between those aimed at children and young people, and those aimed at adults. Only few schemes seem to be aimed at a more specific group, such as those of pre-retirement age, women, ethnic minorities or those on low incomes. European countries have already launched a range of projects to offer financial education to schoolchildren, workers and retired people. Several programmes are aimed at teachers to give them the necessary tools to teach young people about managing their finances. Children and young adults are the main target groups for the majority of the initiatives, together with low-level income and low-level education groups. In the following part of this report, an illustration will be given of ad hoc projects and medium- to long-term actions. Actions that are taken forward by individual EBF members in their home country, with a specific focus on financial education projects for children and youth.

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Austria

www.voebb.at

Children &

YOUTH

Activities of the members of the Austrian Bankers’ Association • Sparefroh TV in cooperation with the Federal Ministry for Education, Art and Culture, two Austrian banks implemented “Sparefroh TV” educational show. A pilot test last year showed that one in three primary schools in Austria had introduced a teaching module using Sparefroh TV. Sparefroh is a character from the 1950s who originally came from Germany. He was used in Austria by the central savings bank (Zentralsparkasse) in the municipality of Vienna at that time. In 2006, the Sparkassen (savings banks) revived Sparefroh to use it as part of ad-free educational shows in which it explains how to handle money correctly. The shows have been recommended by the Federal Ministry for Education, Art and Culture for use in schools. Sparefroh TV is available for free on YouTube, Facebook or sparefroh.at. Moreover, schools can request Sparefroh TV free of charge at the “polis - centre for Citizenship Education in Schools” initiated by the Federal Ministry of Education, Science and Culture20.

Activities of the Austrian National Bank • Inflation Cockpit: an educational online tool on inflation issues. • Education package on ‘Money and Monetary Policy’: since many years the Austrian National Bank provides public schools with the so called Schulkoffer (school bag) which contains handbooks and fact sheets on short movies on financial literacy issues. • Kid workshops: in addition to guided tours at the National Bank’s Money Museum, free of charge, special workshops are organised for kindergarten and school kids. • Euro kids tour: a ‘Euro Bus’ provides primary schools all over Austria with information on how money works and what the safety features of Euro banknotes are.

Activities of the Austrian public authorities/organisations • ‘Fit for Money’ (Fits fur Geld) is a ‘Financial Driver’s Licence ’ programme created by the Federal state of Vorarlberg of Austria. The programme covers chiefly debt prevention for students of ages 10 to 18 such as needs and consumption (including relevant topics such as mobiles, cars, etc.); credit and debt; risks; cash versus credit; cost of living. • Three Coins GmbH (Ltd) is a cross-country financial literacy initiative in Europe, with a specific focus on Central and Eastern Europe (CEE) and South Eastern Europe (SEE). It is based in Vienna/Austria, which is the ‘Three Coins Pioneer’. With social learning products, it provides educative tools that train players’ “alarm bells” to go off in situations where dealing with money responsibly is key. Its top priority is to develop products with a real impact on society through combining creativity, academia and entrepreneurship. It main aim is to broach the challenge of financial literacy throughout society, in order to create a more conducive environment for responsible personal finance. It is engaged with top financial institutions, as well as individuals. 20

http://bim.lbg.ac.at/en/polis-centre-citizenship-education-schools

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Bulgaria

www.abanksb.bg

Activities of the Association of Banks in Bulgaria The first commitment of the Association of Banks in Bulgaria (ABB) is directed at increasing consumers’ financial literacy regarding bank products and services. The actual means of implementing the initiatives for increasing consumers’ financial education are different and they include training, specialised internet sites for financial education, publication of educational materials, dictionaries with financial terms, periodical issues, questionnaires and others. Since January 2009, a new section called “Consumer information” has been included on the ABB21 website. It contains basic questions and answers on the most common financial products and services offered by the banks. This information is only for educational purposes and is directed at consumers who do not have specialised financial knowledge and more specifically in banking. The questions and answers in the section “Consumer Information” on the website are grouped into six subsections: deposit products, loan products, bank payment cards (bank cards) and electronic banking, investment products, payments, deposit guarantee and investor compensation. The information provided in the section “Consumer Information” is updated periodically. The majority of banks in Bulgaria perform independent activities aimed at increasing consumers’ financial education. The development of Consumers’ Information on the ABB web page is meant to supplement the banks’ various, long-term activities in this field.

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21

http://www.abanksb.bg/infoEn.html

Croatia

www.hub.hr

Activities of the Croatian Banking Association The Croatian Banking Association regularly puts in place initiatives aimed at educating and informing the general public on banking /financial products, banking legislation: •

Organisation of workshops:

- The Croatian Banking Association organised from 2006 to 2010 free educational workshops for citizens on the topic of “How to Balance Income and Expenses?” in nine cities. - In February 2012, to raise further the level of financial literacy within the scope of the joint bank Personal Finance Management Project, the Croatian Banking Association members launched additional set of free workshops “Savings and investments: It is Wise to be Informed”. Each workshop is led by two employees from a different bank. Over 1,600 people attended the first set of workshops. Workshops display basic financial terms and are intended for non-experts. They will continue in autumn 2012 and are an example of intersector cooperation and the donation of joint-sectoral resources to the community. - Throughout 2011, a series of workshops was held for entrepreneurs entitled, “Entrepreneurs and banks – working together towards success” in Osijek, Pula, Rijeka, Split, Zadar and Zagreb. This is a joint project undertaken by the Croatian Employers’ Association (CEA) and Croatian Banking Association (CBA), and is aimed at easing communication between banks and their customers, and informing and educating attendees on establishing business relations with banks, particularly with regard to credit lines. The workshops were led by experienced bank employees, who prepared the materials jointly with the CBA. The banks participating in this project offered their employees’ time, thereby making these business workshops another activity in the segment of corporate social responsibility, aimed at achieving financial literacy of entrepreneurs. •

Free online and DVD e-learning application: in 2009, the CBA and banks issued a free online and DVD e-learning application on personal and household budgeting with several useful supplements (information, budget tables and consumer dictionary of financial terms).

•

Contacts with Central Bank and ministries: the CBA initiated contacts with the Central Bank of Croatia and ministries of finance and education to advance this topic.

Activities of the members of the Croatian Banking Association Some banks have projects on advancing consumer information; more leaflets, special detailed and neutral information on products and services.

Activities of Croatian public authorities Over the past years, several civil organisations held presentations, round tables and launched initiatives. The aim of all of these has been to help customers make better financial choices and teach them about their rights. The Government issued a Conclusion at the end of 2011 stating that Ministry of Finance would create a strategic framework for financial literacy of consumers. Challenges include further advancement of this topic through all relevant sectors: government bodies, the 21 financial sector and consumer organisations.

Cyprus

www.acb.com.cy

Activities of the Association of Cyprus Commercial Banks The Association of Cyprus Commercial Banks (ACB) has issued the Banking Code, the Code of Conduct on mortgage loans, the Code of Conduct on SMEs and the Code of Conduct concerning account transfer between banks. These Codes are published on the Association’s website22 and are also available at bank branches for public use.

Activities of the members of the Association of Cyprus Commercial Banks Some member banks of the Association organise annual conferences which focus mainly on investment issues and are open to the general public. Occasionally educational presentations are also organised for the education of specific interested parties/clients particularly on investment matters. Some banks also participate in the organisation (mostly with speeches or sponsorship) of conferences concerning general economic and/ or financial issues. Other educational tools may include informative leaflets and booklets available at the branches and banks‘ websites. Finally, within this context, banks aim at providing constant in house-educational seminars for their employees concerning banking products, policies and regulations so that they are in the best possible position to explain and provide the correct information to their clients.

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Czech Republic

www.czech-ba.cz

Activities of the Czech Banking Association and its members Both the Czech Banking Association (CBA) and its member banks in the Czech Republic have been active in the area of financial education. CBA has initiated, co-ordinated and managed the implementation of a joint project with other professional associations from the financial sector. The result of this project was a free-touse educational website for the general public, which was launched in January 2008. The website explains financial products and jargon and provides basic information on financial planning in the context of different life phases and circumstances. The project gave each CBA partner association a unique opportunity to contribute to the spreading of financial literacy helping people better understand how financial products work. Each association also bears the responsibility for the completeness and correctness of information made available. The key features of the project are that it is non-commercial and unique, allows simple and easy access to the broad public and relies on voluntary and continuous provision/update of the education tools. The information on the website is divided into different sections. The ‘Product’ section is based on the various financial products and services offered by banks and financial institutions. The Product section is split into various sub-sections corresponding to different segments of the financial market: banking (including building societies products etc.); distribution of financial products by intermediaries; investments and financial markets; leasing; pension insurance; and general insurance. The ‘Purpose’ section of the website relates to people’s life circumstances, which require different responses from the financial point of view. A fundamental part of the website is the financial glossary, which explains technical terms. In the year 2010 the CBA, in cooperation with experts, prepared a useful tool for teachers to teach finance in elementary schools. This simple course of family finance and financial education has eight parts and is in the form of a so called working sheet for each lesson with commentary on methodology for teachers. It is easily accessible for all elementary school teachers in the Czech Republic on the web pages www.financnivzdelavani.cz. Members of the CBA carry out many activities in the area of financial education.

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For more information on the project in English please look at the web page http://financnivzdelavani.cz under Project Summary.

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Denmark

www.finansraadet.dk

Activities of the Danish Bankers’ Association The action under the headline of ‘financial literacy’ of the Danish Bankers’ Association targets two main groups of recipients: the customers, i.e. all citizens with their own financial situation, and the pupils and students of the educational system. Activities aimed at the second group would often benefit the first as well, due to their effect of broadening and increasing the population’s level of financial literacy as a whole in the long run, whereas activities aimed at the first group are seen as “quick fixes” to relieve sub-optimal outcomes of the past educational system.

Activities aimed at the customers: • Pengepriser.dk, i.e. the Money Guide: a web-based service where the customers can compare prices of services offered by banks24. Prices are updated on a daily basis, and model households are provided with an easier overview. Furthermore, a dictionary of widely used economic and financial jargon is provided in order to translate into everyday language. • APRC, i.e. Annual Percentage Rate of Charge: the Annual Percentage Rate of charge sums up all expenses on a loan, including interest, fees and taxes. The term is used to provide the customers with an easy tool to compare prices. • Iværksætterguiden, i.e. the Entrepreneurs’ Guide: provides the entrepreneur with solid information on the financial aspects of starting up a company25. For instance the need for a business plan, how to get initial funding etc. The Entrepreneurs’ Guide was updated and revised in 2011. • Penge- og Pensionspanelet, i.e. The Money and Pension Panel: is established by the Ministry of Economic and Business Affairs in 200726. The panel comprises a Chairman, with special and scientific knowledge of consumer affairs, and eight members (one is nominated by the Danish Bankers’ Association). The Panel which is set up and due to deliver its services in a neutral and objective way has as its main tasks: - to provide consumers with information about financial products and services; - to carry out and publish financial market studies of e.g. prices, costumer services and conditions at diverse financial suppliers; - to carry out consumer affairs studies to achieve an improved understanding of e.g. consumer views, consumer behaviour and consumer affairs as to the provision of financial services. The Panel will in 2012 focus on certain projects and work with three main theme-based areas of relevance. The three areas are the following:

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- “Educational initiatives”: the Panel will develop teaching materials that can be used to educate young unemployed people regarding their personal finance matters. The purpose of this project is to help them understand and control their personal finance. The Panel will develop a project that will teach about personal finances. The purpose of this project will be to help students learn more about financial issues and how to manage their money. - “Investments, savings and loans”: this theme is a continuing focal point for the Panel. The Panel wishes to contribute to improve consumers’ knowledge and interest in savings, investments and loans. As a part of this the Panel will have a conference on pensions. The main focus of the conference will be customer conditions on the pension market. -“Development of web-based information for different life-stages”: in 2011 the Panel developed the webbased project “Life-stages”. The purpose of the project is to develop advice concerning personal finances and specific financial matters in different life-stages. This advice will be conveyed in a clear and informal tone to catch the attention of the target groups and be accessible to the average consumer. Available in Danish at http://www.pengepriser.dk Available in Danish at http://www.finansraadet.dk 26 More information at http://www.pengeogpensionspanelet.dk/English.aspx 24 25

Denmark

www.finansraadet.dk

Besides these described projects, the Panel will continue to develop new ideas and projects based on the three themes.

Activities of the members of the Danish Bankers’ Association Most Danish banks have activities that aim to improve their customers’ financial understanding and literacy. This could take the form of seminars aimed at specific target groups - for instance, retirement planning or women and pension - and/or information provided on the website of the bank regarding a specific theme, for instance tax or real estate acquisition. The total amount of activities is manifold, and the list of activities below is thus not exhaustive, but should rather be seen as an example of how Danish banks are engaged with their customers to increase their financial literacy. - Websites: an example could be a bank that launches several websites concerning financial literacy, each targeting a specific group (i.e. preschool, middle school, high school and students up to the age of 27); - Blogs: an example is a bank having a blog on personal financial issues; - Guest lectures: several banks offer guest lectures at the local schools and high schools, providing students at the age of 13 to 18 insight when it comes to their personal economic and financial affairs.

Children & Activities of the Danish Bankers’ Association

YOUTH

• Young Enterprise (YE): YE is a part of Junior Achievement/Young Enterprise Europe27. Its purpose is to facilitate young people’s knowledge of innovation and entrepreneurship. Several Danish banks offer consulting for young entrepreneurs through YE. • European Business Game (EBG): the EBG’ aim28 is to teach high school students how to make a business. Students who have studied business economics can participate in EBG and use the theory learnt in class to make an imaginary business plan. The students compete against other high schools to create the best business. Danish banks offer consultation for participants and are judges in the competition. • Matematikkens Univers, i.e. the Universe of Mathematics: developed as a co-operation between the Danish Bankers Association and the National Association of Teachers in Mathematics, “The Universe of Mathematics”29 is a homepage created for young students, aged 12 to 15, to teach how and why to save money and how to calculate percentages and interest rates. • Vismandsspillet, i.e. the Economic Simulator: is a web-based simulator, developed as a co-operation between the Danish Bankers’ Association and academia. In this simulation, pupils and students in middle and high school and universities can learn about economics. The complexity of simulations depends on the level of the students: the older pupils, the more advanced possibilities and the more complex scenarios. They can, for instance, study the consequences of higher or lower interest rates on the employment, or how tax cuts can stimulate the economy30. • Virksomhedsspillet i.e. The Enterprise Game31: is a virtual game for high school students. In a handson and very reality-like manner, the students learn how to run a business in a changing environment (market developments, regulation etc.). The game can be adopted into the economics and social studies teaching programme. http://www.ffe-ye.dk/ See: http://www.business-games.dk/ 29 Available only in Danish at http://www.matematikkensunivers.dk/fr 30 The data used are from Statistics Denmark. 31 Available in Danish at http://virksomhedsspil.finansraadet.dk/Pages/Forside.aspx 27 28

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Estonia

www.pangaliit.ee

Activities of the Estonian Banking Association with public authorities The Estonian Banking Association values better understanding by the public of how financial products work and how they can be of use. The Estonian Banking Association cooperates with several organisations and public institutions in order to carry out educational activities which include: • www.minuraha.ee the Estonian Financial Supervision Authority (FSA)’s financial literacy website provides objective and reliable information and guidance on budget planning, saving, borrowing, investing, pensions and insurance products. All financial services are explained in details and complemented with several tools, calculators, comparison tables, jargon buster, games and tests. The comparison tables of bank fees, savings accounts and deposits, credit cards, consumer loans and fees on selling or buying stocks are created in cooperation with the Estonian Banking Association and the FSA. Data is inserted and updated directly by the banks. Comparison tables of banking fees contain information on almost 50 services offered by 10 banks concerning payments, the opening and maintenance of an account and the services linked to cash and debit card. The precision and scale of comparison tables will be improved further in 2013.

Activities of the Estonian public authorities • http://volanoustamine.minuraha.ee the Estonian Financial Supervision Authority’s website for social workers was created as a part of a debt counselling project. In 2009 the FSA published information material for social workers to help them in debt counselling. The information covers the most important financial and legal issues, including loans, debts, financial capability and budgeting. To keep the material up to date the FSA printed it as a binder where users can change or add sheets in case something changes in the legislation or in the conditions of any given financial service. All updates can also be downloaded from the website.

Children &

YOUTH

Activities of the members of the Estonian Banking Association Member banks of the Estonian Banking Association have a wide range of financial education activities A well established bank in Estonia has launched new financial literacy initiatives involving children, youth, their parents and teachers. The initiatives include materials that the Children can use alone, together with their parents or at school: • Moneyville, a fun, educational website for 5 to 9 year-olds where children learn basic financial skills to become more responsible with money. To accompany the website, there are also teaching materials for pupils aged from 5 to 7 and pupils aged from 8 and 9 years old. The material is adapted to the school curriculum and also includes tips for parents on how to discuss money matters with their children.

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Estonia

www.pangaliit.ee

• Control Your Money is a free, unbranded, interactive website that is intended to develop a basic understanding of financial matters among 10-15 year-olds and to give their teachers resources to teach financial literacy. It has been developed on the basis of national mathematics and personal finance curricula for schools. The site contains missions that challenge students on financial and mathematical issues that are already part of the curricula. In addition to the eight missions, in the “Real Deal” section, students can also create an actual class project, such as a class trip, a party or a charity project. This enables them to transform their financial knowledge from fiction to reality. • To help prepare teachers to include financial literacy in their teaching this well established bank has developed the Teaching Financial Literacy website. It is a free, unbranded, interactive site intended to support and motivate math teachers as they present financial literacy in the classroom. The site is aimed mainly at teachers of 5-15 year-old pupils.

Activities of the Estonian Banking Association with public authorities The Estonian Banking Association is a member of the methodical Working Group of the Ministry of Education and Research with NASDAQ OMX (Tallinn Stock Exchange) and the Estonian Financial Supervision Authority to compose methodical financial literacy teaching materials for 1-12 year old children on 14 subjects. The costs are covered by all partners in equal parts. The main initiatives undertaken by the Estonian Banking Association with public authorities include: • The book “ABC of personal finance” issued by the FSA and NASDAQ OMX in 2011. This book was given to all schools free of charge and is available, also free, as an e-book. The Banking Association covered the cost of translating the book into Russian and creating a Russian e-book in 2012; • “My Money Day” (in Estonian “Minu raha päev”) programme launched in May 2011 by the FSA and the Estonian Banking Association. In these regional events both pupils and their teachers use the principles of financial literacy through games, tests, tasks and discussions. Representatives of the FSA, the Estonian Banking Association and Nasdaq OMX Tallinn have taken part in 15 “My Money Days” and explained financial services in greater detail to the teachers present.

Activities of the Estonian public authorities • http://kool.minuraha.ee FSA video contest launched in 2009 in co-operation with the Estonian Ministry of Education for the students (from year 1 to 12 years old). The aim was to obtain a better understanding of the students’ knowledge on money matters. The students produced short films about themselves and money. This enabled the FSA to present the information concerning all the financial services on the website in an understandable form for young people. The website is composed of six sections: everyday money matters and life events (chapters composed by specialist); young people about their own money matters (videos); celebrities about their money matters (interviews); useful tools (comparison tables, calculators); games (2 interactive games and 6 tests) and for the teachers (various resources for teachers).

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Finland

www.fkl.fi

Activities of the Federation of Finnish Financial Services The Federation of Finnish Financial Services (FFI) has a long tradition of cooperating with numerous organisations and associations in promoting financial education. Its main objective is to increase financial literacy, especially among young people, and to raise awareness on the importance of financial literacy. The FFI seeks to influence the reform of basic education to ensure the continuity and quality of financial literacy. Statements to the Ministry of Education and Culture are made to ensure and strengthen the role of financial literacy in the school system. The ultimate goal is to increase the amount of financial literacy in the National Curriculum and have the subject taught at an early stage. The FFI also participates to ensure that the financial industry’s future needs are taken into account in the development of business economics education.

Children &

YOUTH

Activities of the Federation of Finish Financial services The FFI is active in many projects which are the following: • The Zaldo campaign: the FFI aspires to influence and inspire young people in high schools in modern web-based learning environment ‘Zaldo’32. The Zaldo campaign, represented by its namesake monster mascot, covers all essential areas of personal finances. It also includes a final test where the user can ‘tame’ his or her own financial monster. The learning environment is designed to be used as part of the usual economic classes in the 9th grade. • School tour: schools, teachers and educational institutions are important interest groups in all FFI’s operations. Each year, the FFI and its member organisations organise a school tour which covers the whole country. During visits the FFI introduces the Zaldo learning environment and provide students tips on improving the management of their personal finances. • www.keepitrolling.fi the FFO financial literacy website presents the industry in a comprehensible and easily approachable manner. The site is aimed at the young who seek for more information about courier options and information about financial studies. The site is widely used by member corporations in arranging school visits and by careers counsellors in various schools. • Organisation of annual competitions: the Federation of Finish Financial services organises, together with the Bank of Finland and the Association for Teachers of History and Economic Information Office, annual competitions such as ‘Talousguru’ (‘Economic Guru’) for students aged between 16 and 19 years old. • Full-day training sessions on current economic topics for teachers, exhibitions and other events for the young about the financial literacy and financial sector. Training and educational sessions are organised together with various organisations: Finnish National Board of Education, Bank of Finland, Finnish Foundation for share promotion, the Association for Teachers of History and Economic Information Office. 32

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www.zaldo.fi

France

www.fbf.fr

Financial and budget literacy is an issue which each year attracts more and more attention in France. Its importance is fully recognised, especially for young people. The national Ministry of Education, considered as one of the most important actor, remains highly cautious about offering to students a background in budget and finance, whatever the age of the Children.

Activities of the French Banking Federation For more than 10 years, the French Banking Federation (FBF) has been active through different channels: • “Les Clés de la Banque” (The key to banks) is a global financial literacy improvement programme aimed at enabling the public to understand financial matters either directly through the website33 publication of numerous brochures on various subjects (1 million copies distributed in 2008) or, via social workers on behalf of the population who needs information and cannot access it by him/herself. The website offers practical information on all issues about banking and aims to improve the public’s understanding of money matters. In 2011, the website was visited over 1,900,000 times a year and 900,000 guides were distributed. Information is available through two channels: one designed to inform individuals on multiple topics about bank and finance and the other to allow the public to ask questions directly by using the ‘contact’ part offering personalised responses. As such, associations and social networks usually use this function to request documentation. - The programme initially geared towards private individuals is now operational for professionals since March 2009. The “Professionals” part is designed for merchants, craftsmen, liberal professionals and entrepreneurs with a very precise deciphering of banking. Currently, the site consists of approximately 2000 pages. - In June 2009 the site “social actors” was created to identify existing barriers for vulnerable people and for those who are experiencing financial and social difficulties and do not necessarily have access to Internet or other sources of information for various reasons e.g. illiteracy, obstacle of language etc. This site aims to help social actors in their daily work and to give them information and practical tools. Since 2006, partnerships have been developed with social actors in the field: with the Centre for Social Actions (CCAS) or at departmental level. The programme “lesclesdelabanque.com” also provides training modules for social actors to help form them on banking issues. These partnerships between social actors and bankers have as a challenge also to improve prevention (through education, for example), to detect and anticipate the problems that individuals have faced with their finance. • Since June 2009, several organisations, including the French Banking Federation (FBF) and the National Union of Family Associations (UNAF), signed a charter for the promotion of financial education which includes the management of a family budget. The portal www.monbudget.famille.gouv.fr was launched by the Family affairs Secretariat of State to raise public awareness on this issue. • The initiatives of the « Institut pour l’Education Financière du Public » (Institute for Public Financial Education): The Institute for Public Financial Education (IEFP), a non-profit association created by the Financial Markets Authority (AMF), promotes and develops financial literacy in France, and encompasses topics such as private budget, credit, retirement, investment, general understanding of the economy, crisis analysis and others. Its goal is to bring together the players of financial education in France: teachers, public authorities, press, writers, consumer associations, firms (bankers, insurers, etc.) The FBF contributes to the financing of IEFP and is a member of its board and committee. 33

http://www.lesclesdelabanque.com

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France

www.fbf.fr

- The association, better known under “Finance skills for all” (www.lafinancepourtous.com) has become a useful reference on the web and addresses major topics on personal finance and savings. - It organises finance-related conferences and represents France in Europe and internationally to debate best practices. - It has also written a couple of books, including “Personal Finance for Dummies” published in April 2009. - The IEFP has launched actions toward three target audiences: young people at school and outside school; workers, within the company and as part of their retirement planning; and consumers, customers of financial institutions. - IEFP and the Financial Markets Authority (AMF) have jointly asked the Research Centre for the Study and Observation of Living (CREDOC) to carry out an inquiry on the basic awareness of financial literacy in France mentioning that citizens have a strong appetite to understand the economic and financial crisis because of the threats around the euro area and the national debt increase. According to the study carried out any initiatives to improve financial literacy is considered useful: 79% believe that learning more about finance during school would be an effective way to progress in finance. This is especially true for young people (18-24 years) for which the percentage rises to 86%. In addition, 77% approve the suggestion to undertake training in the company for which they work, 70% do not see any objection to being formed directly by financial institutions. Again, with 79%. young people are well above the average; 70% find it useful to consult the websites providing information and explanations; 65% are keenly interested by the introduction of television programme on these themes.”

Activities of the consumer organisations and the national institute consumption Consumer organisations also provide the dissemination of financial literacy, notably through their websites: • The National Union of Family Associations (UNAF)34 publises regular articles contributing to a better understanding of personal finance. The Civic and Social Union of Women (UFCS)35 with UNAF have edited in 2003 a CD-ROM for young people on the theme of “managing money”. This support is also available online on these associations’ websites. • The National Consumer Institute (INC)36 displays many sections with thematic topics related to bank, money and insurance on their websites: www.conso.net. • The Association of Financial Companies (ASF)37 has designed booklets for the general public in consultation with consumer groups on consumer credit: “Credit to consumption, what you need to know”.

Activities of Public Authorities The Bank of France, the Financial Markets Authority (AMF) and the Prudential Control Authority (ACP) engage permanent actions to publicise their role in the field of financial activities’ supervision and develop financial literacy initiatives for the general public i.e the Bank of France with a specific focus on youth and senior people received 300 youths and 120 seniors the first five months of 2009.

www.unaf.fr http://www.ufcs.org/ 36 www.conso.net 37 www.asf-france.com 34 35

30

France

www.fbf.fr

Children &

YOUTH

Activities of the French Banking Federation • “La banque, ma banque et moi” (Banks, my bank and me) is an educational programme distributed in high schools, on a regional basis, by voluntary local bankers acting in the name of the French Banking Federation. The programme targets 15-16 year olds and gives a basic grounding in banking and money matters. More than 7,000 students in seven academies have benefited from the scheme; • In June 2009 a new website “young adults”, accessible from the website “Les Clés de la Banque” (The Key to Banks) portal was created. The site designed for a public between 15 and 25 years, aims to provide youth with the necessary elements for their adult lives in relation to the world of bank and money. It includes three main headings: - a business section (sheets explaining the trade, videos, training); - a game to learn the keys about banking and money (budget, payment, credit ...); - practical notes on the banking and money. The FBF is also active through the initiatives of the « Institut pour l’Education Financière du Public » • (Institute for Public Financial Education) for young oung people at school and outside school: the Institute works closely with the Ministry of Education to providenowledge and give skills through the teaching of mathematics, economics and management. On 30 May 2009, an agreement was signed between the IEFP and National Education in a symposium organised by the OECD, for the development of financial education by offering training modules to young people from the academy of Amiens.

Activities of the members of the French Banking Association All banks in France have specific products and targeted communication for young people, for example: • Finance and pedagogy Association38: created by well known bank and approved by the French Ministry of Education, the educational project of Finance and Pedagogy has for aim to help young people understand financial matters and be more financially responsible. The Association is notably a partner of a large number of schools and intervenes at each level of the scholarship. It provides support for teachers and provides them with an additional tool. The actions are usually conducted during school hours with the teachers’ approval. The themes are linked to some curriculum areas such as, for example: economy, management, sales, mathematics, and social life. • “Abcbanque.fr” website was launched in 2011 by a well established bank. This website is dedicated to the education of children (6-11 years). It covers topics on money and budget through games, videos and a dictionary, giving advice to young people through articles and case studies. It also publishes the guide “Getting into the workforce - the guide to ask the right questions”. The website gives practival advices on topics like ‘managing your bank account, making a budget, borrowing, saving’ through practical advices. The website has been designed as an evolving tool that will grow with the children. A study by PlaybacPanel in September 2010 revealed “that children managed their money at a very early stage. Thus, spending money, previously reserved for teenagers to finance their trips and outings, is now routinely given at primary school, for 30% of households. 38

http://www.finances-pedagogie.fr

31

France

www.fbf.fr

Talk about money at home is no longer taboo and is done regularly. Indeed 9 out of 10 children have a bank account before the age of 11. The vast majority (79%) manage their money very carefully and economically, from the perspective of a proposed future expenditure”. • “Real talk” workshops39: these free workshops launched by a well established bank and , run by bank employees are prepared for the general public. They concern in particular matters affecting young people, such as “the savings principles” or the ‘students’ instruction manual. - In addition, through its Foundation this bank develops and promotes financial education operating through the construction of training and educational tools (i.e. ‘turnkey’) with the involvement of associations and institutions such as ABCD, Aurora, Cresus, and Catholic Relief Services. The Foundation’s initiatives have a particular focus on young people in rehabilitation. • Another bank proposes additional initiatives such as the following: - “Youth Portal” which helps young people navigate various milestones in life (learning how to manage firsts savings; money; fund a driver’s licence) through Educational videos available; - Communication materials (brochures, etc.) to present products and services; - “The crazy day of Julien” (www.lafollejourneedejulien.com) video game - Games “do you speak bank?”: games for young people to discover the keywords in the banking world; - Tools to facilitate how to learn banking: a specific space for 12-17 years olds to allow young people to become familiar with the monitoring of their accounts with or without their parents. These tools include notably applications for mobiles: o Access Account: to access their account and make transfers. o Project Idea for a financial approach to a particular project (duration and amount of savings to buy his/her games’ console, first car, a holiday, etc.). o Budget Monitoring that tracks spending in terms of categories and has a graphical representation to simplify the management of its budget. o Application “Reality Book” to facilitate the search for new housing. - Participatory financing, strengthening social ties within a community and fostering the realisation of creative projects, including the Young with his partner KissKissBankBank. (www.kisskissbankbank. com). http://parlonsvrai.bnpparibas.net/

39

32

Germany

www.german-banks.com

Activities of the Association of German Banks The Association of German Banks (BdB) has been promoting economic and financial literacy for many years. Its two-pronged approach targets young people, students and teachers on the one hand, and adults and consumers on the other. • The website www.infos-finanzen.de contains extensive information for consumers on: - customers and banks; - accounts and cards; - saving and investing; - credit and loans; - pensions and planning for retirement. • Publication of booklets on a range of banking and financial topics under the title “fokus: verbraucher”. The booklets can be ordered free of charge or downloaded from the association’s website. • “Bank-News” which is providing consumers with easy-to-understand tips and information on all aspects of money for more than 30 years. This consumer newsletter is published every two weeks. Issues covered, include consumer rights (e.g. the Ombudsman Scheme), information on withholding tax, online banking security tips, warnings about dubious investment schemes and advice on managing holiday finances.

Children & Activities of the Association of German Banks

YOUTH

• Schul|Bank: economics for the classroom (for students and teachers). Getting young people interested in economics and making the subject more accessible to them is the target that German banks have set themselves. Over 20 years ago BDB set up a special unit called “Schul/Bank”, to accomplish this task and develop projects for use in the classroom. The Schul|Bank programme supports teachers in teaching economics and finance, and makes available specially designed educational material. Booklets for students explain economic principles. Nationwide competitions give young people intensive hands-on experience of the world of finance, business and work. Furthermore, the association has created a special website that is dedicated to financial education for both students and teachers40. The programme essentially comprises the following elements: - Geld-Special41 (Money Special) is a dedicated internet portal that offers fact sheets and worksheets on managing money, payment services, saving, investing and borrowing; - Rund ums Geld (All about Money) is a different kind of book about money. It leads young people through a role-play exercise, in the course of which they learn about managing money. Simulations of real-life situations make them aware of their saving and spending behaviour. They practise managing their own finances and are familiarised with a variety of banking services and investment opportunities; - “Schul/Banker”42 , is a competition for pupils aged between 16 to 19, in which they run an ‘imaginary bank’. It is a complex business game in which the young players gain intensive, hands-on experience of the economy and labour market. The three best Schul/ Banker teams win non-cash prizes for the players and cash prizes for their schools (up to EUR 5.000). Over 50.000 students have participated since the competition was launched 1998; http://www.schulbank.de/ http://www.schulbank.de/ (Finanzwissenschaft) 42 The players receive extensive support through the information available on http://www.schulbank.de/ 40 41

33

Germany

www.german-banks.com

- “Jugend und Wirtschaft” (Youth and the Economy), is a joint project of the Association of German Banks and the newspaper Frankfurter Allgemeine Zeitung (F.A.Z.), in which 60 schools participate each year. According to pupils, this initiative has filled a gap in lessons of business economics by providing more up-to-date materials for pupils. Teachers are also supported throughout in the form of seminars before and during the project’s duration; in addition a representative from F.A.Z. visits classrooms periodically. Over 12000 students have participated since the project was launched in 2000. • Several publications have been produced to promote understanding of the basic principles of economics and finance. These include: - the ‘Wie Wirtschaft erleben 1 & 2 & 3’ (How the Economy Works 1 & 2 & 3) for younger secondary school pupils. It teaches young people basic economic concepts and principles with the help of material drawn from their everyday life and experience; - the reference books ‘Im Kreislauf der Wirtschaft’ (Exploring Economics) and ‘Wirtschaft auf einen Blick” (Economics at a Glance), the latter gives explanations of 600 economic terms, with more detail on important concepts, backed up by illustrations; - Schul/Bank newsletter is a monthly newsletter aimed at teachers. Over 65.000 teachers in Germany read this newsletter every month. For teaching senior pupils, a file called “Wirtschaft- Materialien für den Unterricht” (Material on Economics for the classroom) has been prepared; - More specialist information can be found in “Bezahlen heute” (Understanding Today’s Payment Systems), Kredite - wie geht das? (Credit - How does it work?), and ’Das Bank- und Börsen-ABC’ (ABC of Banks & Stock Exchanges). • School curriculum: the Association of German Banks has long called for economics to be taught as a compulsory subject in its own right. It believes a systematic approach is needed if students are to build up a sound understanding of economic principles and economic causes and effects. In May 2008, the Association of German Banks and the Institute of Economics Education at Oldenburg University published a blueprint for teaching economics at non-vocational schools in order to highlight the importance of putting the subject on the curriculum. The publication is the first of its kind to set out an economics’ syllabus for all levels of education from primary school to Abitur (university entrance qualification). In addition, the report puts forward a detailed proposal for training specialist teachers in a degree course leading to a Bachelor and Master of Economics’ Education. The blueprint is also available on the website www.schulbank.de.

Initiatives of the Association of German Banks with other financial services associations

34

• Financial literacy resources: together with other financial services associations, the Federal Ministry of Family Affairs, Senior Citizens, Women and Youth, consumer protection organisations and debt counselors, the Association of German Banks has launched a joint project to support the teaching of financial literacy. Resources for use in the classroom by teachers and students are available free of charge on CD-ROM or by going to www.unterrichtshilfe-finanzkompetenz.de. • Initiative Finanzstandort Deutschland (IFD): the Association of German Banks is a member of Initiative Finanzstandort Deutschland (IFD), an action group for the German financial sector. The members of the IFD represent all sections of the financial services’ sector. It operates in cooperation with the Federal Ministry of Finance and the Bundesbank, and is actively involved in raising the level of financial literacy among the general public, with special focus on secondary schools. The internet portal “All about Money” (www.kursraumgeld.de) has been especially designed for students and teachers and is jointly maintained by IFD members.

Greece

www.hba.gr

Activities of the Hellenic Bank Association The Hellenic Bank Association (HBA) regularly contributes to various initiatives aimed at educating and informing the general public on banking/financial products, banking legislation and practices, consumer rights, and so on. The Association’s website is also used as a vehicle for information dissemination.

Children &

YOUTH

Activities of the Hellenic Bank Association The HBA participates in Junior Achievement Greece (JA Greece43), of which it has been a member since 2007. JA Greece is the local partner of Junior Achievement Worldwide and, as such, it implements Junior Achievement education programmes on entrepreneurship and basic economics addressed to students of primary and secondary education. These programmes are delivered by volunteers-business executives who work closely with school teachers. The volunteers become role models and valuable channels of communication between the school and the labour market. The Hellenic Bank Association (HBA) supports the programme Banks in Action, addressed to high school students between 15-18 years old (originally developed by JA Worldwide with the sponsorship of a bank’s Foundation). The objective of this programme is to give students the opportunity to develop an understanding of and interest in the banking industry and acquire basic financial knowledge and skills necessary for them to manage their finances as informed consumers and future professionals. The programme consists of eight volunteer-led sessions that familiarise students with the principles of banking and the challenges of successfully operating a bank in a competitive environment. The HBA has sponsored the translation of the education package supporting the programme (see below). Moreover, it acts as a liaison between Junior Achievement Greece and its member banks in order to find and train volunteers. The programme’s supporting material is a Greek translation of the original English language material provided by Junior Achievement Worldwide. This consists of a guide for volunteers and teacher, student workbook, pre- and post-programme tests, DVD presentations, game, online or CD-ROM simulation (in English) and a number of other useful tools and materials (checklists, lesson plans, name tags, etc.). In order to enrich the programme with localised information so as to make it more relevant to the Greek context, the Hellenic Bank Association is currently preparing an annex to supplement the material mentioned above. During the school year 2011-2012, three private and one public school carried out this programme. For the school year 2012-13, a new evaluation system is in place. In each school in which the programme is implemented, three types of evaluation forms in questionnaire format are to be collected from the: (a) students, (b) tschool teacher and (c) volunteer-instructor. A working group led by the Hellenic Bank Association and JA Greece will regularly review these and make improvements to the programme, as necessary. 43

www.sen.org.gr

35

Hungary

www.bankszovetseg.hu

Activities of the Hungarian Banking Association with the public authorities In order to concentrate funds dedicated to developing financial literacy and reinforce co-operation between governmental organisations, market players and non-profit organisations, the Money Compass – Foundation for Financial Awareness was established by the Student Loan Centre, the Hungarian Banking Association (HBA) and the Central Bank of Hungary (HCB). The Hungarian Financial Supervisory Authority (HFSA) and the Hungarian Competition Authority (HCA) actively participate in the activity of the Foundation within the framework of a Memorandum of Understanding. The Foundation started its activity at the beginning of 2009. The objective of the operation of the Foundation is that, as a result of its programmes, an increasing proportion of the population should be aware of basic financial terms and the relevance to their lives. This, in order to interpret economic and financial information, assess its effect, and be able to take conscious and responsible decisions in everyday finances. The Foundation has elaborated and operated programmes for both the public and financial sector that support the aforementioned objectives. The main elements of the programmes of the Foundation are the following: • Programme aiming at the financial sector: as a result of the cooperation between the Foundation and a well-known payment processor company since 2010, the range of ‘Bank of the Year’ prizes that can be won by commercial banks was extended to the recognition of the financial institution that proves to be the most active in the development of financial culture. • Programmes aiming at a broad range of the population: in May 2011, a financial attitude shaping and information programme named ‘Our Everyday Finances Programme’ was launched, unprecedented, in Hungary. For 15 months during the programme, in co-operation with one of the leading media company, nearly 700 articles and independent editorial contents are published in 22 media, conveying practical financial knowledge necessary for everyday life, with ranges of subjects changing on a monthly basis. Beside these programmes, the Foundation took part in a baseline survey on financial literacy44. It was the coordinator in Hungary of the OECD International Network on the Financial Education pilot study, undertaken in 14 countries. The analysis focuses on variations in financial knowledge, behaviour, and attitude, across, and within countries, by socio-demographics. These results will enable countries to identify needs and gaps in financial education provision and develop national policies or strategies. They also provide a sound evidence base for developing OECD recommendations and principles45.

Activities of Hungarian public authorities Over the past few years, Hungarian governmental and non-governmental institutions, professional and nonprofit organisations have taken several measures to improve the financial capability and awareness of Hungarian citizens. The Hungarian Central Bank (HCB) plays a leading role by initiating steps aimed at developing financial literacy and coordinating cooperation between organisations and institutions.

http://www.oecd-ilibrary.org/finance-and-investment/measuring-financial-literacy_5k9csfs90fr4-en

44

http://www.mnb.hu/Penzugyi_kultura/kutatasok/oecd

45

36

Hungary

www.bankszovetseg.hu

The Hungarian Central Bank’s website46 was developed in order to make the average person familiar with central bank-related specific economic issues such as inflation, cash-substitute instruments etc. The development of the website is aimed at providing simple and correct information to the general public in order to improve people’s understanding of basic economic concepts. The homepage was designed in consideration of the experiences of foreign central banks, as well as the findings of a preliminary focus group survey conducted among students. (In the first five months of the operation, the site was visited by several hundred thousand people.) The Visitor Centre of the Central Bank received in total more than 250, 000 visitors from 2007 until now. Of which, 60 % participated in the complimentary programmes providing basic financial education and information on the central bank. From 2007, 1,590 teams participated in the contest organised by the central bank for high school students to promote financial awareness and transfer central bank-specific knowledge. The major professional challenges for the near future are to have financial and economic studies as compulsory subject in the Hungarian School Curricula in order to establish an official network of secondary schools, identifiable as reference schools for their region, and participating actively in initiatives on financial education.

Children &

YOUTH

Activities of the Hungarian public authorities/ organisations • From 2007 a special information leaflet “Money speaks – do you understand it?” was distributed to all secondary school students in their final year and covered a wide range of financial topics. The leaflet was produced in cooperation with the founding organisations (HCB, HSFA, MEC, MF) . In 2012, the content and design of the information leaflet was updated. During these 6 years more than 600, 000 students received the leaflet. • An internet-based financial educational programme for secondary school students and teachers was developed by working teachers. It aims at teaching everyday financial knowledge to young people and helping to shape their attitude towards money management. The development of the programme was sponsored and coordinated by Self Care Foundation, established by the Budapest Stock Exchange. The Hungarian Central Bank provided professional and financial contributions to the programme. Secondary schools were invited to make an application to teach this programme throughout the school year 2008/2009. They were also encouraged to contribute further by providing feedback on their teaching experience. Each of the 25 successful candidate schools is supported by HUF 1 million.

46

http://www.penziranytu.mnb.hu

37

Hungary

www.bankszovetseg.hu

• Programmes aiming at high school students and the related further training of teachers: currently, there is no subject in the core curriculum which could serve as a yardstick for Hungarian schools and would grant equal access, for all students, to basic economic and financial literacy information. The core aim of the Money Compass – Foundation for Financial Awareness is to resolve this problem: each year it helps an increasing number of students acquire economic and financial knowledge at secondary schools. A so-called Financial Education Programme (FEP) was elaborated for the spreading of financial knowledge. Teachers are guided by Internet-based educational material available on www.penziskola.hu. The central element of the Programme is a syllabus of practical financial and economic subjects, which includes case studies and is supplemented by tests, online and offline games, and a stock exchange simulation game. With the involvement of over 60 high schools, more than 8,300 secondary students and 278 teachers participated in the Financial Education Programme over the last four school years. The educational institutions participating in the Financial Education Programme (FEP) constitute the backbone of the Money Compass School Network, which was jointly established with the Ministry of Education in 2009. The title is practically a trademark. It tacitly acknowledges schools that represent the values of spreading financial knowledge in a significant way within their scholarship and pedagogical work. At present, more than 90 high schools are members of the Money Compass School Network; the number of students studying at high schools exceeds 90,000. In 2011 the Hungarian School Curricula was revised. The Foundation lobbied to have the financial and economic areas of competency integrated into the curricula as a stand-alone subject or crosscurricular. The lobby was successful, an optional financial and economic subject will be launched from 2013. The content of this subject is created with the help of the Foundation beside the crosscurricular execution.

Activities of the members of the Hungarian Banking Association Members of the HBA are active in educating their customers in basic finances to support them in making well-informed decisions. Furthermore, there are examples of banks making additional efforts to increase the financial literacy of different age groups, by running various financial education programmes, especially for young people in school and in advanced education. - Exemplary, are the achievements in the area of financial education of the largest global financial services’ company’s local franchise. In line with its global strategy of commitment to financial education, the local franchise is running a number of long-term financial education programmes, targeting elementary, secondary school and university students and their teachers. And this, with the aim of providing them with modern, technology-based curriculum resources and innovative teaching strategies, which increase students’ knowledge and skills in economics and finance. Volunteer staff are dedicating their knowledge, experience and time to supporting the programmes.

38

Ireland

www.ibf.ie

Activities of the members of the Irish Banking Federation A number of banks support the State-funded National Consumer Agency (NCA) in providing a free personal finance education programme to people in the workplace. This Money Skills for Life Programme, launched in April 2012, is supported by the banks through the continued provision of trained and appropriately accredited presenters. The presentations take place in the workplace. The presenters do not give financial advice and they represent the initiative and the National Consumer Agency (NCA), not the banks from which they come. All employees attending the presentations are provided with a comprehensive 184-pages Handbook to be used as an ongoing information resource to help them manage their personal finances. This Handbook also includes a 12-months budget planner. Some 99% of those who have completed a post-presentation evaluation stated that they found the programme useful and 87% stated that they intended to do something differently when managing their money after attending the presentation.

Children &

YOUTH

Activities of the members of the Irish Banking Federation A number of the Irish banks are actively involved in supporting the work of Junior Achievement Ireland, a non-government, charitable organisation which provides innovative, interactive, enterprise and life skills’ programmes to primary and post-primary school students. The Junior Achievement programme encourages young people to remain in education and teaches them the skills they need to succeed in a changing world. One of the significant ways in which banks support this work is through providing volunteers to assist in the delivery of the programme; 67 staff from one leading bank alone volunteered their services during 2011. Various banks have developed their own free financial education programmes for use by schools and colleges. • One example is a comprehensive and impartial programme called MoneySense (http://www.moneysense.ulsterbank.ie), which provides 35 hours of online education resources for the post-primary school market, and which is currently in use in approximately half of all of Ireland’s post-primary schools. The programme covers banking, money management, savings, borrowing, budgeting and planning for the future, as well as a one-day enterprise development module to encourage students to set up and run their own businesses. • Another example is Build a Bank Challenge; an enjoyable and exciting way for ‘Transition’ and 5thYear post-primary students to run their own School Bank with the support of a real bank. At the same time, they learn a great deal about managing their own business. The programme sees a team of six students selected to set up and manage a bank in their school, getting involved in everything from sourcing new customers and opening accounts to encouraging regular savings and exploring new ways to bank, such as telephone and internet banking. Now in its 11th year, the programme has gone from strength to strength. Based on the feedback of those who have taken part in the past, it is a very rewarding and enriching experience both for teachers and students alike. 39

Ireland

www.ibf.ie

• One example is a comprehensive and impartial programme called MoneySense (http://www.moneysense.ulsterbank.ie), which provides 35 hours of online education resources for the post-primary school market, and which is currently in use in approximately half of all of Ireland’s post-primary schools. The programme covers banking, money management, savings, borrowing, budgeting and planning for the future, as well as a one-day enterprise development module to encourage students to set up and run their own businesses. Another example is Build a Bank Challenge; an enjoyable and exciting way for ‘Transition’ and 5thYear post-primary students to run their own School Bank with the support of a real bank. At the same time, they learn a great deal about managing their own business. The programme sees a team of six students selected to set up and manage a bank in their school, getting involved in everything from sourcing new customers and opening accounts to encouraging regular savings and exploring new ways to bank, such as telephone and internet banking. Now in its 11th year, the programme has gone from strength to strength. Based on the feedback of those who have taken part in the past, it is a very rewarding and enriching experience both for teachers and students alike. Learn to Earn is a dynamic and innovative five-week financial literacy programme developed by one bank in association with Junior Achievement Ireland and Young Enterprise Northern Ireland. The programme is aimed at senior-cycle, post primary students aged 15-17 years old. Learn to Earn consists of five modules, delivered by a volunteer from a local bank branch. The programme includes an opportunity for students to gain an understanding of the practicalities of everyday finances and highlights the importance of saving and investing their money responsibly. Each student receives a Certificate of Achievement upon completion to recognise the time and effort students put into the programme. There has been a very positive response to the initiative with 52 business volunteers, from the bank, teaching the programme to more than 2,000 students in some 90 post-primary school classes, across 65 schools throughout the Republic of Ireland, during the 2010 - 2011 school year. In Northern Ireland, 18 business volunteers from the bank taught 44 sessions in 18 schools during the same period.

40

Italy

www.pattichiari.it - www.abi.it

Activities of the Italian Banking Association Since 2003, ABI (Italian Banking Association) has pursued a distinct strategy for improving financial education. These tasks are realised through “PattiChiari Consortium”, a separate legal entity, which provides customers with simple comparison tools and financial education programmes to help them better understand financial products and make informed choices. In accordance with this mission, the Consortium has launched initiatives and campaigns, following a life-cycle approach for youths, adults and seniors. The PattiChiari model for delivering financial education programmes combines five high level points: - conformity to OECD and European Commission guidelines; - organisational and financial sustainability; - stakeholders and partners involvement; - easiness and flexibility to use all over the country; - efficiency assessment. Financial education for adults • “L’impronta economica Plus” is a multimedia programme designed in collaboration with Consumers’ Associations. It offers the possibility for adults to obtain information on key money management topics: - family budget planning and over-indebtedness (how to draw a family budget, saving and avoid over-indebtedness); - banking services and payment systems (current accounts, how to read the bank statement, internet, phone and mobile banking); - me and the bank (mortgages subscription and transfer, clients’ rights, privacy protection); - saving and investments (investment tools, risk management, pension funds). The contents are provided through a CD-ROM which includes printable documents with in-depth information about the above mentioned topics. Banking and Consumers’ Association experts are available for providing assistance for consumers and clarifying the topics that require more specific explanations. They also promote meetings with different kinds of citizens (migrants, young families, elderly, etc.) across the whole country. • www.economiascuola.it website is the PattiChiari financial education website addressed to teachers (at all levels) and families. It also includes a YouTube channel and a Facebook fan-page. The website shows interviews with experts (teachers, sociologists, and psychologists, talking about money management issues) and shows how to best tackle these topics with children, teenagers and students. It also provides teaching resources that can be downloaded for use in class. Currently, there are approximately 1,000 registered teachers in the online community who can: - get in touch with each other and follow other members’ activities; - upload and download teaching materials (13 lessons, documents, fact sheets, exercises, etc.); - propose and manage theme groups, participate in groups suggested by others and open their own blog to share thoughts and contributions with colleagues; - participate in contests.

41

Italy

www.pattichiari.it - www.abi.it

Research activities • The ICF™ (Financial Education Index) developed by PattiChiari Consortium offers the possibility to measure Italians’ financial education level by developing an index, based on 3 components (financial education and training, financial information, behavioral decisions). In the 2010 measurement, the average index total score was 4.3 on a 0-to-10 scale. Financial ‘sufficiency’ is equal to 5, so the level of financial literacy seems to be decidedly poor. A new ICF™ measurement will be carried out in 2012. The index will be updated in order to be coherent to the Organisation of Economic Cooperation and Development (OECD) guidelines “Measuring Financial Literacy: Questionnaire and Guidance Notes for Conducting an Internationally Comparable Survey of Financial Literacy”47 48. Furthermore, the PattiChiari Consortium is carrying out other research projects for example: • “Le esperienze di educazione finanziaria. Indagine sulla realtà italiana nel contesto internazionale” reporting on Italian organisations, providing financial education schemes nationwide and assessing the teaching of financial education in schools; • “Fiabe e denaro - Un libro per educare all’economia, alla finanza e al risparmio” and “Educazione finanziaria: un approccio per la realizzazione del benessere monitoring and identifying socio-pedagogical, cultural and evolutionary dynamics. PattiChiari research projects are carried out in partnership with independent research institutes and/or Italian Universities, such as Fondazione Rosselli, Università di Milano – Bicocca, Università Cattolica del Sacro Cuore. Partnership development PattiChiari built up relationships with national and local institutions and authorities (i.e. Ministry of Education, Ministry of Local Development and Ministry for Social Cohesion, Regional School Offices, etc.) as it takes a widespread developmental approach to its work. Key stakeholders recognised and joined the PattiChiari effort in order to improve financial education. Partnerships with association representing consumers, parents and the elderly means that useful information about personal finance can be distributed easily to their membership PattiChiari works closely with partners to ensure that plans and toolkits are targeted at specific groups. So far, the Italian Banking Association has been working with several key partners including: • Fondazione per la Scuola Compagnia di San Paolo: joint project aimed at encouraging financial education at school and among teachers); • Associazione Nazionale Dirigenti e Alte professionalità della scuola (ANP): promotion of PattiChiari financial education programmes for schools and raising teachers’ awareness on the importance of financial education; • Associazione Europea per l’Educazione Economica (AEEE); publication of the “Financial Education in schools – For awareness Citizenship” volume; • Guardia di Finanza (co-operation for lessons targeted to primary schools focused on money and legality); • Associazione dei Comuni Italiani (ANCI): involvement of local institutions in financial education campaigns throughout the country; • Several Consumers’ Associations; Adiconsum, Adoc, Altroconsumo, Asso-Consum, Assoutenti, Casa del Consumatore, CittadinanzAttiva, Codici, Codacons, Confconsumatori, Lega Consumatori, Movimento Consumatori, Movimento Difesa del Cittadino, Unione Nazionale Consumatori on the development of financial education campaigns for adults across the country). • Upter-Solidarietà: financial education meetings targeted to elderly. 42

http://www.oecd.org/finance/financialeducation/49994090.pdf

47

http://www.oecd.org/finance/financialeducation/49878153.pdf

48

Italy

www.pattichiari.it - www.abi.it

Children & PattiChiari Consortium School programmes

YOUTH

The PattiChiari programmes are acknowledged by the Ministry of Education. Their methodology combines elements stimulating a holistic learning experience through different stages and tools: - assessment of participants’ starting knowledge (initial test); - empathic learning; - concept learning; - practical learning (laboratory); - assessment of acquired knowledge and shift in perception/attitude (final test). Banking experts are also available to deliver classroom lessons. From 2004 to 2012, over 120,000 students from all over Italy have been involved in the PattiChiari Consortium financial education programmes. Pre/post-tests containing questions both on main concepts and attitudes/perceptions have shown there has been an increase in knowledge and a general improvement in the participants’ relationship with money, as well as a positive effect in terms of people having the awareness to save money. • “L’impronta economica Kids” is a programme for primary school students aimed at encouraging children to understand the value of money and to realise the importance of responsible money management, both for themselves and for the community. The main topics are coins and paper money, job and earning, money flow, ordinary/extraordinary/ necessary/unnecessary spending, saving, banking and payment systems, borrowing and interest rates. • “L’impronta economica Junior” introduces junior high school students to the economy, and encouraging them to explore/discover the basic finance concepts, and to show their impact on everyday life. The main topics are personal and family financial planning, money flow, savings’ management, responsible spending, banking and payment systems, how finance works, insurance policies and risk management. The programme allows students to participate in the contest “Un’impresa a quattro zampe” which aims simulate the management of a ‘dog pound budget’ and the development of a fund raising activity through an online software. • “L’impronta economica Teens” is, addressed to high schools students and introduces them to financial issues in help them approach social, professional and economic life. The main topics are globalisation, ethical finance, financial risk, banking services, welfare and insurance policies, over-indebtedness, personal and family financial planning, saving management, responsible spending, banking and payment systems, entrepreneurship and making business plan. The programme allows students to participate in the contest “Sviluppa la tua idea imprenditoriale” aimed at writing drawing a business plan for an enterprise that could create positive social impacts at local level.

43

Liechtenstein

www.bankenverband.li/

Activities of the Liechtenstein Bankers Association The availability of qualified personnel is one of the most important factors affecting the competitiveness of a financial centre. For many years, the Liechtenstein Bankers Association (LBA) has engaged in continued training in banking and finance, and has consistenly fulfilled this task in various fields and at various levels. As a small financial centre, but with a traditionally strong economic partnership with Switzerland (e.g. currency and customs union) LBA relies on different cooperation arrangements with Swiss institutions, especially with the Swiss Bankers’ Association (SBA) and their initiatives in the area of financial education. In accordance with the financial centre strategy for 2015, another strategic goal was to launch a “Financial Literacy” project to develop people’s general skills and knowledge in finance and banking. From 2011, decisions were taken by the stakeholders to launch this project and a rough concept was adopted. Almost around the same time, high priority initiatives were implemented. In the table herewith, the LBA’s initiatives in the area of financial literacy will be briefly introduced. Target Group / School Level (age)

Initiative

Children

Kindergarten (4-6)

Potz Tuusig (financial competence)

Primary (7-12)

Kinder Cash (debt prevention)

Lower secondary (12-16)

Debt prevention / Budgeting

Upper secondary (14-18)

Banking 4 you (financial centre / job training)

Tertiary education (18+)

- Managing income - Saving and investing - Acquisition of real estate - Financial centre

50+

Pension planning

Youth

Adults

Lead Partner

Conducted by

Period (beginning)

ASD

Pro Juventute

2012

Teacher ASD CYP

ASD/LBA/ Banks

2011/12

LBA CYP/LBA/ Banks

2012 2013 (scheduled)

Children &

YOUTH

Activities of the Liechtenstein Bankers Association (LBA) The LBA uses various methods and different partners to educate and familiarise the public with banking and financial issues. In the area of financial education of young people and the general public, there are currently a number of initiatives in place such as: • “Potz Tuusig”,aimed at teaching general financial competency (money & consumption) to children at pre-primary age and support the development of a responsible financial behaviour at an early stage. This interactive education tool combines two different teaching units (for in-school lessons and with the family at home). The in-school lessons are conducted by representatives of Pro Juventute52, this particular developer of this education tool. 44

52

a non-profit organisation in Switzerland, see http://www.projuventute.ch/

Liechtenstein

www.bankenverband.li/

• “Kinder Cash” developed by Pro Juventute is a tool designed for children at primary level and their parents to learn the socially conscious handling of money in an age-appropriate and playful way at home or at school. Issues relating to money and debt are scarcely anchored in European curricula and many parents feel apparently overwhelmed by the variety of such issues. The main initiative goal is early debt prevention, which is formative for later spending behaviour of children and adolescents. The in-school lessons are conducted by teachers. Both initiatives Potz Tuusig and Kinder Cash take place under the patronage of, and in cooperation with the Office for Social Services of the Principality of Liechtenstein - Amt für Soziale Dienste (ASD)53. • Debt prevention and budgeting for youth at lower secondary level: sessions developed and conducted jointly by representatives of the ASD, LBA and representatives of LBA member banks. • “Banking 4 you” - interactive and age-appropriate instruction courses and materials on the topics of banking, job applications and job training developed by the LBA. Since May 2011, teaching units have been conducted by LBA representatives in various upper secondary school classes. • Supplementary training courses for adults in the areas of saving and investing of money: real estate financing and pension planning are planned in cooperation with the Center for Young Professionals in Banking54 (CYP), which was established in 2003 by different Swiss banks and the SBA. • Own publications and information brochures of the LBA for banks’ clients (e.g. brochures “Avoidance of Dormant Assets” “Risks in Securities Trading” etc.). • LBA’s member banks websites. • Iconomix55: a web-based training programme for upper secondary level, created and produced by the Swiss National Bank, and dealing with the world of economics in general. The webpage content is integrated in the “Banking 4 you”-teaching units. Beside this, the LBA’s Basic Training Working Group - established in 2009 - is dealing with the topic of quality assurance in basic training as well as the measures launched in 2010 to secure motivated and high-performance young talent in the long term. A leaflet entitled “Your first step in the banking world” was prepared and the website was redesigned56. For the first time, workshops for practical trainers at the Liechtenstein banks were also held. Additionally, various talks and discussions took place with the representatives of the University of Liechtenstein57, with a view to harmonising strategies and defining possible joint projects in the future. Other points of concerns were quality assurance as well as improvement and intensification of cooperation between the university and the LBA.

Activities in cooperation with Switzerland In the field of basic and continuing training, the banks invest substantial effort in the future of highly trained young talent. At Liechtenstein banks, an average of approximately 100 young women and men receive basic training at any given time (5 % of total banking staff). In 2003, the SBA established the Center for Young Professionals in Banking (CYP), a competency and training centre for young banking talents. One of these centres was also set up in Liechtenstein in August 2005. This ensures a high standard of training in the field of nonacademic education as well. Cooperation with the SBA’s Training Commission, as well as current developments in the field of training in banking and finance, resulted in various other topics being considered by the LBA’s Staff Development Committee, such as accreditation of certification procedures, further development of entry into banking for secondary school graduates, clarification of basic questions, introduction of necessary measures in light of the major developments and challenges relating to the education system. Office for Social Services of the Principality of Liechtenstein (http://www.llv.li/amtsstellen/llv-asd-home.htm) see http://www.cyp.ch/home/ 55 see http://www.iconomix.ch/en/ 56 see http://www.bankenverband.li/CFDOCS/cmsout/admin/index 57 see http://www.uni.li/Home/tabid/36/language/en-US/Default.aspx 53

54

45

Lithuania

www.lba.lt

Activities of the Association of Lithuanian Banks with public authorities The Association of the Lithuanian Banks (ALB) promotes financial education in cooperation with the Bank of Lithuania, the financial sector supervisor. Representatives of the Association of Lithuanian Banks are members of a working group on financial education, chaired by the supervisor. All members of the ALB are actively participating in project launched by the Bank of Lithuania which is a webbased free service where the customers can compare prices of services offered by banks. Booklets issued by the ALB or together with the supervisor are available at banks branches and they include: • Anti Money Laundering booklet “Why do Banks Ask?“ in Lithuanian, English, Russian languages, issued in 2009 and 2011. • Booklet “Do you think that your Rights are violated and the dispute with a financial services provider cannot be resolved? “, issued in 2012. The Association of Lithuanian Banks is involved in number of joint programmes/ campaigns on financial education, such as: • “Prevention of and Fight against Crime” programme58 (together with the Lithuanian Consumer Institute) on consumers’ awareness on non-cash payment fraud, launched in 2008. The programme consists of: survey, sociological study, consumer complaints analysis, press conference, internet site, international conference, information for adults, video, information radio shows, brochure, information for children, computer game, contest for children, competition for students. • Joint information campaign of Lithuanian banks59 coordinated by the Association of Lithuanian banks to inform society about more efficient and secure electronic payment instruments; cards, launched in 2011, continued in 2012.

Children & Activities of the members of the Association of the Lithuanian Banks

YOUTH

Major banks have different initiatives and projects for children and adults to improve financial education. Their most important initiatives are: • www.pinigenai.lt; a financial literacy programme, designed to develop children’s and young people’s financial skills. This website is for children aged 5-9 year olds and its aim is to give them a basic knowledge of what money is, how to choose priorities, and how to save so that later they are able to manage their finance responsibly. • The Educational Project LIFT has received approval from the Ministry of Education. Project goal is to provide financial knowledge, business and teamwork skills for the highschools students. • “Financial Planner” is a computerised budget planning and control programme using e-banking services for customers. • The programme “Zoom” encourages students’ creativity and helps develop financial management and investment skills. 46

http://www.vartotojai.lt/en/sukciavimas

58 59

http://www.kortelekasdien.lt

Luxembourg

www.abbl.lu

Activities of the Luxembourg Bankers’ Association • The Luxembourg Bankers’ Association (ABBL)’s website features a special file with general information for consumers on the legal framework regarding banking and finance. - It provides consumers with information on consumer credit, payment services, banking standards, deposit guarantees, codes of conduct, distance marketing, unfair commercial practices, unclaimed assets and dormant accounts, as well as Single Euro Payments Area (SEPA). A dossier on security for online banking transactions was also developed in collaboration with Cyberworld Awareness Security Enhancement Structure (CASES) of the Ministry of Economy and Foreign Trade. - Furthermore, the ABBL website provides information on the procedure to be followed in case of loss or theft of a bank card, on tracing assets after a death, opening a bank account, on what to do in case a dispute arises between a bank and a customer, on switching bank accounts, as well as on over-indebtedness. - The ABBL website also features a financial glossary covering, amongst others, financial products and services. - Furthermore, the ABBL has put in place a twitter account with a view to informing the general public in a more timely fashion. • The Luxembourg Bankers’ Association’s Publications: amongst others, the ABBL has published brochures on: - “Switching bank accounts in Luxembourg” - “CEDIES - Les métiers de la finance” (financial professions) - «Un emploi dans le secteur bancaire» (a job in the banking sector) These brochures can be downloaded from the website.

Children

&

YOUTH See next Page

47

Luxembourg

www.abbl.lu

Children &

YOUTH

The Luxembourg Bankers’ Association’s programmes for students -The Luxembourg Bankers’ Associations (ABBL) participates in various events aimed at introducing students to basic financial principles, as well as to financial products, financial services, and banking legislation in Luxembourg. -The ABBL supports students in writing their theses or dissertations related to banking and finance. -The ABBL, as well as its members, holds lectures in international schools and universities and welcomes students in Luxembourg in cooperation with other financial associations as well as Luxembourg for Finance (LFF), the agency for the development of the Luxembourg financial centre. -In cooperation with the Luxembourg School of Finance, the ABBL is in the process of developing an internationally recognised Master II (equivalent to a LL.M) and an executive certification in International Wealth Management. A programme on cooperation with universities related to financial research subjects will be launched in 2013. -L’Institut, the ABBL training institute (IFBL), set up in 1990, offers a large spectrum of courses. While primarily aimed at financial sector employees, these courses are also open to the general public, i.e. any person wishing to familiarise themselves with products and services on offer to clients of financial institutions in Luxembourg, as well as with the legal, prudential or regulatory environment of the Luxembourg financial centre. Generally, the courses are divided into three levels (M1=theoretical foundations, M2=practical application, M3 =specificities of a product or service), thus allowing anyone to acquire the knowledge and aptitudes they may need in either their professional or private lives.

Activities of the members of the Luxembourg Bankers’ Association Individual member banks of the ABBL have also some initiatives on financial education. Programmes are aimed at young people, high school students and young professionals. They organise interactive workshops, seminars, lectures on topics such as how to deal with money; understanding how a bank works; different jobs in a bank; simulation games on trading activities; or functioning of the financial markets. In 2011, a member opened a bank branch exclusively offering products and advice to young people.

48

Malta

www.financemalta.org

Activities of Malta Bankers’ Association The Malta Bankers’ Association is often involved in the launch of educational campaigns as well as in the publication of booklets/brochures on topical financial issues. One such campaign, due to be launched later on this year, is aimed at encouraging consumers to move away from the more traditional forms of effecting payments (cash and cheques) to more efficient and secure electronic payment instruments (cards, direct debits, internet banking, etc).

Activities of the members of the Malta Banker’s Association Some member banks offer Education Programmes on their own initiative. One such Investor Education Programme, which is open to the general public and is free of charge, has been conducted every year since 2002. It comprises four courses held in four different localities spread around Malta with each course comprising five two-hour presentations. The content of the Programme is tailored for persons who have never had any formal financial education.

Activities of the public authorities The Consumer Affairs’ Unit within the Malta Financial Services’ Authority (the sole regulator of all banking, investment and insurance business) regularly issues information brochures aimed at providing consumers with educational material and information on financial products and services. The Unit also regularly organises radio and television programmes for which the Malta Bankers’ Association provides speakers and panelists when required. A number of initiatives have been taken by the public authorities. A Commission on financial literacy and retirement income has recently been launched by the Government. The main objective of this Commission, of which the Chairman of the Malta Bankers’ Association is a member, is that of raising awareness on the need to plan for retirement. Among its terms of reference, the Commission has to devise a strategy to create a financially educated population and educate on financial management and planning. It has to carry out studies on retirement planning behaviour and attitudes, and design knowledge campaigns to guide citizens to make informed financial choices and decisions for their retirement. It must also commission a survey to assess the level of financial literacy in Malta, which will act as a baseline study for a National Strategy for Financial Literacy.

Children & Activities of the public authorities

YOUTH

The Maltese Education Department has also included financial literacy in schools as part and parcel of certain subjects studied at secondary level. Furthermore, the Home Economics Seminar Centre facilitates seminars for both primary and secondary school children. Of particular significance is a seminar aimed at secondary school students and which specifically addresses different financial aspects. It helps to empower students to use their financial resources and services available in an efficient, effective, and sustainable manner. At this Centre, there is also a mock bank sponsored by one of our member banks whereby the students are introduced, through role-play, to various banking services. In the proposed National Curriculum Framework published in May 2011, Entrepreneurship Education is being proposed as a cross-curricular theme. The national authorities are of the opinion that Entrepreneurship Education will be the means to help students develop a conscienciouness as to how the world of money works, and in this way they would be able to understand basic financial concepts.

49

The Netherlands

www.nvb.nl

Activities of Dutch Banking Association The Dutch Banking Association (NVB) is one of the founding organisations and major funding partners of the Money Wise platform, a multi-stakeholder platform with more than 40 partner organisations from the financial sector, government, public information, consumer organisations and the field of science. The aim of the platform is to strengthen the consumer’s position in the financial domain, to increase the consumers’ financial insight and to foster sound financial decision making. National Education Exhibit: by actively participating in (a Fair for Dutch teachers) the NVB is focusing on the teachers as a target group.

Activities of the members of the Dutch Banking Association Individual banks are also involved in several activities on financial education. Some of them have developed teaching materials, others developed internet banking tools that give improved insight into the individual spending patterns of consumers. Activities of individual banks are bundled into the brochure from the Dutch Banking Association “Wise with money”.

Children &

YOUTH

Activities of the Dutch Banking Association • Money Week: the Dutch Banking Association has participated in the Money Week since 2010. The basis of the project is “Bank in class”. Employees from participating banks give guest lessons in primary schools. The Dutch Banking Association developed a platform game which is donated to the schools that are visited. This game contains financial education knowledge and behavioural questions. Pupils and Teachers are very positive when they evaluate the game. In 2011 bank employees gave 1500 guest lessons on 1000 schools. Moneyboxes were distributed, reaching more than 50.000 children. • Secondary Schools (a Pilot programme): because the Money Week focus lies with primary schools, there was a need to develop a financial education programme for the secondary schools. The Dutch Banking Association developed five financial education modules that fit seamlessly into the existing school subject: “economy”. The programme is supported by a “financial education ambassador” who visits the school on a regular basis. Schools are very enthusiastic about to participating. • App (a Pilot programme): the Dutch Banking Association is developing a financial education App. The App will be available for free in the third quarter of 2012 in the App store for iPad and iPhone. During the launch, the Dutch Banking Association will distribute iPads to pupils in the school roomwhere the App will be presented. The App has a “permanent and innovative” character. This approach fits with the aim to embed financial education in a structured way.

50

Norway

www.fno.no

Activities of the Norwegian Financial Services Association, Finance Norway The Norwegian Financial Services Association, Finance Norway, (FNO) and a large number of its members put considerable resources into information and education in schools, nationwide. Finance Norway wishes to improve and promote financial institutions’ efforts in this area, and encourages members to work with schools. Financial education is a priority for the FNO. An important role for the finance industry The Norwegian Financial Services Association, Finance Norway, (FNO) has made booklets with economic advice focused on parents and teachers and educational material for secondary schools (together with Junior Achievement - Young Enterprise Norway (UE)) and educational material for advanced levels. More than 60 banks and insurance companies in Norway cooperate with schools. Last year over 10.000 pupils in secondary schools were taught by employees from different banks throughout Norway in one of Junior Achievement - Young Enterprise Norway’s (JA-YE) educational programmes. The banks involved have their own websites.

Children & Activities of the public authorities

YOUTH

Finance Norway and many of its members cooperate closely with Junior Achievement - Young Enterprise Norway (UE) (JA-YE). JA-YE enterprise and economic education programmes are designed for young people and implemented through a partnership between local businesses and schools. Finance Norway’s work on financial education is rooted in the common historical background of the work done by the Norwegian savings’ banks. There is a lack of financial literacy among young people and this brings a considerable risk for poor and costly financial decisions making in the future. To address this and prevent them from ending up in difficulties, children and teenagers need to be given a thorough grounding in personal finances. Personal finances should be part of the curriculum at every level. Although there is scope within the existing curriculum to teach young people about personal finances, it is not an explicit learning goal, which makes it somewhat arbitrary which pupils will benefit. The main objective is to increase understanding of economic and financial issues. Through Junior Achievement - Young Enterprise Norway (UE) different fields are covered such as “Economics for success” (for ages 13-15), company programmes (15-18) and graduate programmes (19+). Finance Norway also provides educational tools in order to facilitate financial education initiated by its members. These are aimed at secondary school level and cover personal finance, including basic insurance topics. In close cooperation with the Norwegian State Housing Bank and the Norwegian Labour and Welfare Service (NAV) Finance Norway has recently developed a digital tool for financial education (https://sjefiegetliv. husbanken.no). The main target group is youth within the age group 14-19 and the tool draws the youtht’s attention to what will affect his or her ability to finance his/her first home. The consequences of short-term consumption on long-term savings are highlighted. The FNO cooperates closely with the Norwegian Consumer Ombudsman in order to give young people between 18-25 an understanding of how to manage their finances and provide them with information to avoid financial pitfalls.

51

Poland

www.zbp.pl

Activities of the Polish Bank Association The Polish Bank Association (PBA) carries out the following activities in the field of financial education: • coordinating and participating in the Financial Education Forum in Poland, the members of which are associations of financial institutions, the Central Bank, the Financial Supervision Authority, the Polish Stock Exchange, other financial institutions, the Junior Achievement Foundation, other foundations for economic education, relevant ministries, etc.; • preparing reports on financial education activities in Poland; • publishing regularly updated information on the PBA website about the current offer of financial education programmes in Poland; • offering expertise in banking and finance to assist education authorities in updating and upgrading the financial education programmes; • cooperating with regional radio stations; financial education programmes and competitions for audience; • providing financial education inserts in national and local newspapers (40 inserts for approx. 13.5 million readers); • publishing financial guides for customers (e.g. Guide to Safe Loans); • participating in programmes for financial market awareness, radio, tv, newspapers, banking product fairs, public debates, etc.; • participation in projects related to financial inclusion (e.g. “Mutual Learning on Financial Inclusion”, an EU-funded project) and providing expertise to organisations assisting in debt recovery programmes for citizens.

Children &

YOUTH

Activities of the Polish Banking Association The Polish Bank Association (PBA) carries out evaluation of financial education programmes and handbooks in Poland (obligatory and non-obligatory for all school types; programmes for children, students, adults and professional groups), evaluation of educational standards for students of banking and finance, evaluation of students’ training in economics and finance undertaken within financial institutions.

Activities of the members of the Polish Bank Association Individual bank members of the Association cooperate locally with schools, foundations and various government and non-government institutions on a bilateral basis. Some of banks have established dedicated foundations, some are foundation sponsors.

52

Portugal

www.apb.pt

Activities of the Portuguese Banking Association In June 2011, the Board of the Associação Portuguesa de Bancos (the Portuguese Banking Association) (APB) approved a document entitled A Sectoral Strategy for Financial Education, which calls upon all agents in the sector to join forces in building “a bigger, better, more comprehensive financial culture”. The APB drew up a common action strategy for the sector. This strategy would be aligned with the country’s strategy in the National Financial Training Plan (PNFF) of the Conselho Nacional de Supervisores Financeiros (National Council of Financial Supervisors), which comprises Banco de Portugal, Comissão de Mercado de Valores Mobiliários (Portuguese Stock Exchange Commission) and Instituto de Seguros de Portugal. After approval of the sectoral strategy, the Working Group encompassed more member banks and announced its main plans for 2012. It also created a corporate identity and set out the project’s main lines of communication and dissemination. The APB plans to develop financial literacy programmes that are common to the entire banking sector and is divided into different areas of action and cover the whole country. It will encompass all age groups and socioeconomic categories: children, young people, students, families, seniors, vulnerable persons, teachers, businesspeople and business associations. Workshops for journalists The strategy entails a number of initiatives to further journalists’ knowledge of the banking and financial sector and provide the media with access to reliable, credible information about the sector. - These initiatives include training courses for journalists as part of the Vocational Training Centre for Journalists (CENJOR) activities, enabling them to attend post-graduate courses at the Instituto Superior de Gestão Bancária (ISGB) the Portuguese School of bank management and specific training courses for journalists in media not involved with the CENJOR, such as radio and television reporters. - The Portuguese Banking Association (APB) started preparing the initiatives for journalists in early 2010. They consist of workshops with schedules suited to their target audience and information needs. An online survey was conducted in January 2010 to ascertain the subjects on which they required training. The first course was on the subject in which they expressed the greatest interest; financial analysis of a balance sheet. It was held in Lisbon and Porto respectively and attended by 73 economic journalists. - The training programme for journalists, begun in 2010, was extended to the post-graduate programme at the ISGB (School of Bank Management). As of 2011, two places have been made available to journalists free of charge in each ISGB post-graduate course. • Partnership with Entrajuda (private charity) – Microcredit Workshop: in 2011, the APB and some of its Members entered into a partnership with Entrajuda in the area of microcredit and the Dar a Volta (turn it around) Programme. The idea is to use workshops all over the country to teach charities and practitioners working with them about financial instruments and home management so that they provide more effective assistance to disadvantaged families. The purpose of the Microcredit Workshop is to help families dealing with unemployment and hardship to turn their lives around, e.g. the unemployed using microcredit to create their own business or jobs, and especially helping them to break the poverty cycle through work. A large number of banks is participating in the programme.

53

Portugal

www.apb.pt

• Partnership with Directorate-General for Consumers’ Workshop; training for consumer advisers : this partnership with the Directorate-General for Consumers to train advisers at Municipal Consumer Information Centres (CIAC) began in 2011. The goal is for these advisers to acquire knowledge that will enable them to inform the public better about bank products and services. The first course, which was held in Lisbon in November 2011, was attended by 28 advisers from these centres. Topics at the first savings products’ workshop were notably the following: bank deposits, deposit guarantee, types of deposit, remuneration and interest rates, and capitalisation schemes. Initiatives for the general public A report on the Portuguese population financial literacy survey published in November 2011 showed that most of the population needed basic training on financial matters (more than half the interviewees did not know the meaning of the terms Euribor or spread and were unable to assess the risk of term deposits or had difficulty identifying a change in balance in their current account after a credit or debit). The strategy for this subgroup was to provide information on important financial issues for different target audiences using major channels and simple, pragmatic language appropriate to each segment. Where possible, the message focused on practical cases. This strategy used direct and indirect forms of communication, such as websites and the media, among others. • Development of the Boas contas, boas práticas (Good Accounts, Good Practices) website: the name Boas práticas, boas contas chosen for the website was also used as the signature for the sector’s whole Financial Literacy Programme. The website is designed to encourage people to use good practices when managing their household budgets with a view to greater financial stability and therefore better quality of life. It endeavours to use the real, human, practical side of financial matters in order to come closer to society and facilitate people’s involvement and influence their behaviour. This educational project is committed to providing the public with useful, accessible information on banking services with practical, realistic examples that use simple language and reflect their own lives.

Activities of the members of the Portuguese Banking Association The banking sector has an important history of work in financial education. Most initiatives have been undertaken as part of social responsibility policies or bank’s strategies for relations with customers and society as a whole. Some of these initiatives should be associated with the sectoral strategy and the suggestion is for this to be done by using the project’s insignia.

54

Portugal

www.apb.pt

Children &

YOUTH

Activities of the members of the Portuguese Banking Association (APB) • Bank A initiative: Vamos Educar (Let’s Educate): in 2010, as part of the Vamos Educar Corporate Volunteer Programme - Valores Mais Humanos (More Human Values) the bank entered into a partnership with Associação Aprender a Empreender, the Portuguese counterpart of Junior Achievement. It consists of teaching young people the Economia para o Sucesso [Economics for Success] financial literacy programme. Bank employees participate in the Vamos Educar programme as volunteers. The Economia para o Sucesso programme is designed for 7th to 9th grade pupils and provides practical information on managing personal finances, the idea of risk and insurance, the importance of setting education and career goals based on their interests, values and abilities, promoting an entrepreneurial spirit and the advantages of lifelong learning. This is a nationwide programme and the following results were achieved in 2011: - 77 volunteers - 539 hours of volunteer work - 25 schools - 1,718 pupils - 12,885 hours of financial literacy training • Bank B initiative: Contas à vida (Taking account of life) – young people: this UK bank project was adapted to Portugal. It started in 2008 and is designed for young people (aged 14 to 19) who are at school, attending vocational training programmes, have recently left school or are unemployed or socially excluded. It consists of educational activities organised by volunteers working with a local facilitator. The idea is to help young people understand the role and importance of money in their lives; think about useful financial resources for the future, and develop personal and social skills important to their life plans. It is administered by trained volunteers from the bank who are given a manual explaining the goals and dynamics of the activities. Each volunteer decides with the project leader on the most appropriate activities and the best form of action in each group. The project was attended by around 1,000 young people and involved 139 volunteers. • Bank C initiative: A Importância de Poupar (The Importance of Saving): the programme was set up to help form an aware, financially responsible society. It puts over financial concepts simply and clearly, thereby facilitating training and encouraging saving. The aim is to raise people’s awareness of the importance of saving and teaching the basics of proper financial management.

55

Portugal

www.apb.pt

The A importância de poupar programme is having a positive impact and there have been new invitations to plan more training sessions from upper secondary schools, parish councils, and senior universities, amongst others. A number of vocational schools have been visited and hundreds of students have participated since early 2011. • Bank D initiatives: - No Banco da Escola (Banking on school): this initiative in partnership with the Portuguese Maths’ Society (SPM). It is designed for 3rd and 4th grade pupils all over the country. Its aim is to educate children and explain some basic concepts of their relationship with money and the importance and utility of maths in their everyday lives. The programme offers educational contents that introduce primary school pupils to subjects such as means of payment, credit; and savings. The sessions are for any state and private primary schools that wish to enrol. - Olimpíadas de matemática - Portuguese Maths Olympics: they consist of a maths’ problem contest designed to encourage and develop a taste for maths. They are organised by Sociedade Portuguesa de Matemática and intended for students from the 5th to 12th grade. These Olympics are part of the national education plan, in optional or compulsory classes, and their contents focus on everyday practices: o how do draw up a monthly and annual household budget; o how to plan and budget for holidays, trips or expensive purchases. • Bank E initiatives -Kidzânia: is a theme park for children aged from 3 to 15. It has an official currency, the kidZos, with which they can access a wide variety of services (supermarket, hairdresser, car rental, etc.) or go shopping in the kidZos shop. The contents accompany the school syllabus. They teach children the rules and values of citizenship, help them to live healthily in society and emphasise the importance of saving. In this city built to their scale, children can play at being grown-ups in a lifelike environment. They can choose from 60 occupations in replicas of a city’s most typical establishments, such as an airport, a factory, a theatre, a shop, a racing circuit, a police station, a fire station, a media press centre, a TV studio, a stadium and many more. The activities are designed to be both fun and educational, based on the concept of “edu-tainment”. In order to earn kidZos, the children have to work in their chosen occupations and their efforts are rewarded. They have to manage their own money and can deposit kidZos in their account at the bank’s branch at KidZania. They can make withdrawals at Automated teller machines (ATMs).

56

Portugal

www.apb.pt

- Educação+ (Education + Project): this is a travelling financial education exhibition resulting from a partnership with Aveiro University. It is designed particularly for children and young people aged from 7 to 17, but are actually open to everyone. Its programme, contents (interactive games) have been certified by the Matemática Ensino (PmatE) project at Aveiro University. The calendar was adjusted to fit in with the school year 2010/2011, at the request of the Ministry of Education, so that the exhibition and lectures can be included in schools’ syllabi. The 2011/2012 exhibition began at the Rainha D. Leonor upper secondary school in Lisbon and ended during the National Science Competitions. It was visited by more than 25,000 children, young people and adults. - Ciclo Da Poupança (saving Cycle): the aim of the savings’ cycle is to make children and young people aware of the need to preserve the planet by saving natural resources. It links the concepts of saving resources and saving money. A new image was designed for the Ciclo da Poupança micro-site to commemorate World Savings’ Day to provide young people with a game full of surprise prizes. The micro-site consists of tips, curiosities, games and lots of information about the planet. • Bank F initiatives - Partnership with Junior Achievement: the bank collaborated with the association Aprender a Empreender - Junior Achievement Portugal. It is also a sponsor of the Graduate Programme with action for young people of specific age groups. In 2010, 123 volunteer employees participated in these programmes, to a total of 1,200 hours. The programmes were divided into the following parts: the family, the community, Economics for success and a graduate programme. This project looks into subjects like personal finances and education and career choices based on interests, values, and skills. It also demonstrates the benefits of staying on at school. - Partnership with Microsoft - Safer Internet Day: the bank has been participating in this campaign for three years. On a certain day in February, training is given at 1st to 6th and 10th to 12th grades at schools on the subject of online safety (computer use), game websites, social networks, etc). An employee is present during this training. - Partnership with Grupo Leya - the book Faz crescer o teu dinheiro (Make your Money Grow): this partnership with Texto Editores, the Grupo Leya publisher, resulted in the book Faz crescer o teu dinheiro, which was published in 2011, to inform young people of concepts of efficient money management.

57

Portugal

www.apb.pt

• Bank G initiatives: - Tostão a tostão se chega ao milhão (penny by penny we reach a million) for children The aims of this initiative are the following: o to alert children to the need and importance of mutual values and helping others, to introduce financial and economic concepts such as work, pay, money, savings, debit and credit, and banks, amongst others; o to encourage saving habits and prevent indebtedness; o to develop a sense of individual, family and community financial responsibility. The programme lasts around eight hours and consists of four phases that combine theory and practice: o Phase 1 – Classroom training o Phase 2 – Reading session or theatrical enactment of the story A Dona Poupança e o Jardim dos Valores [Mrs Savings and the Garden of Values] o Phase 3 – Visit to a Montepio branch o Phase 4 – Visit to a Grupo Auchan hypermarket In 2011, 213 courses were held in the Children’s Financial Education Programme involving 74 classes from 37 different schools in the districts of Porto, Coimbra, Leiria, Lisboa, Setúbal and Faro. They reached 1,775 children and involved 46 volunteer employees.

58

Portugal

www.apb.pt

In the table herewith, the APB’s initiatives in the area of financial literacy are briefly presented.

Bank D Bank I Bank H Bank E Bank G

VAMOS Educar Customer and employee awareness Contas à Vida – Jovens Contas à Vida – Adultos Company Programme Mentoring& Job Shadowing Dar a Volta Planeamento Financeiro and Millennium Sugere Partnership with Junior Achievement - Cycles I,II and III Partnership with Junior Achievement - Graduate Programme Collaboration in Dar a Volta – Microcredit Trade Solutions No Banco da Escola Conceitos Financeiros (b-aBES) Website Olimpíadas de Matemática Poupança BES Junior Micropoupança Orçamento Familiar Educational kits Faça Mais Pelo seu Dinheiro Roadshows

Um dia no Banco Popular Literacia Financeira nas Escolas Brochura de Conceitos Financeiros Básicos Kidzânia (theme park) Exposição Educação + Financeira Saldo Positivo (website) Ciclo da Poupança Poupar e Investir – Adultos Tostão a Tostão se Chega ao Milhão – Crianças A Importância de Poupar

Business people employees

High school students

Higher education students

Vulnerable people

Children & young people

Seniors over 65

General public

X X X X X X X X X

X X X

X X X X

X X X X X

X

X

X

X

X X X X X

X

X X X X x

x

Bank C

MEMBERS' INITIATIVES

Bank F

Bank B

Bank A

Target population

59

Romania

www.arb.ro

Activities of the Romanian Banking Association • Romanians’ Level of Financial Education” Survey: last year, the Romanian Banking Association conducted a market survey called “Romanians’ Level of Financial Education” which stated that banking products were still not well known by the population. The survey identified that the informing channel in the financial and banking sector mostly used by the population is TV broadcasts on financial and banking topics, followed by informal sources such as friends/relatives. Half of the respondents consider that school should deal with the population’s financial education, this institution being followed by the mass-media and banks. The survey was performed at national level on a sample of 1,000 respondents from the adult population, of which the population using banking intermediation represented 56%. According to the survey, the most well-known products are bank debit and credit cards – but even these products are known to only about 4 out of 10 Romanians. More than half of the population using banking intermediation have not compared several offers before purchasing a financial or banking product, while only 41% of respondents have declared that they have read the entire contract they signed. The results of this survey were the grounds for the decision to conduct a financial education campaign on TV and initiate attempts, together with the Ministry for Education, with a view to introducing on a large scale optional classes for financial education in high schools. • The campaign for the population’s financial education: the Romanian Banking Association joined the efforts made by member banks with a view to launching the programmes pertaining to the population’s financial and banking education and to this end started a specific campaign on the public TV station TVR1. The campaign is deployed during December 2011 to July 2012, and via it the RBA intends to contribute to enhancing awareness among current and future customers of credit institutions by explaining banking terminology to a large audience. The Romanian Banking Association made 14 fillers (films with a duration of 2 minutes each) as co-producer with the Romanian Television (the national television), films which are broadcast four times a week during the eight months of the campaign. The advantage of deploying a TV campaign is the fact that the distribution of the information is large enough, considering the fact that the public TV station has national coverage, thus being a campaign targeting rural areas as well, areas where the level of banking civilization is rather low for the time being. • Informing customers via TV displays set in bank branches: each bank contributes to the Romanians’ financial education by placing TV displays in certain bank branches, based on Order 164/2011 issued by the National Authority for Consumer Protection, screens on which information about consumers’ rights and obligations is displayed, in conformity with the legislation in force, as well as explanations regarding financial and banking terminology. In order to simplify the messages that are to be displayed and read by individual customers, the banking community has agreed on a common content, easy to understand from the point of view of banking legislation and terminology.

60

Romania

www.arb.ro

Activities of the members of the Romanian Banking Association on the National Strategy on Financial Education The Romanian Banking Association is part of the Working Group that deals with the National Strategy on Financial Education, together with the representatives of the National Authority for Consumer Protection, the National Bank of Romania, the Ministry for Education, the Competition Council and so on. The National Strategy on Financial Education 2011-2016 is meant to assure an overall vision regarding financial education in Romania. The aim of this strategy is: to create a framework so that all organisations (governmental, non-profit, and private) are involved in financial education; to draw up policies in the field, and offer a useful guide for the development of financial education programmes over the next five years. Following consultations, the proposals submitted by the RBA mainly referred to introducing in the high schools’ curricula the mandatory discipline “Financial Education”, since currently it is only an optional class.

Children &

YOUTH

Activities of the Romanian Banking Association Financial education in high schools: the Romanian Banking Association held talks with the representatives of the Ministry for Education, Research, the Young and Sports, regarding establishing a partnership with a view to implementing, on a large scale, optional financial education classes in high schools. The objective of the RBA project is to introduce on a large scale optional financial education classes in high schools in the capital, Bucharest. The pilot stage of the project will be training,with the support of the banking community. The teachers participating in the programme will be appointed by the Ministry for Education, on condition that, subsequently, they give Financial Education classes.

61

Slovakia

www.sbaonline.sk

Activities of the Slovak Banking Association Following the 200760 survey conducted by the Slovak Banking Association (SBA) mentioning that the knowledge and skills of the average consumer in Slovakia is very poor in the area of financial products and services, the SBA has prepared a non-commercial educational project to improve financial literacy in Slovakia: 61 • A new section called “Financial education” has been included since 2007 on the website of SBA . The first product of the activities on SBA website was a free financial glossary with wiki-style web, which is also available on websites of Slovak banks and other financial institutions. It is also printed in the form of a brochure and provided free of charge, mainly to the banking ombudsman’s clients and other SBA visitors. It can be also downloaded from the website. Financial glossary contains terminology and explanatory definitions of circa 70 basic bank products and services. This web site section includes a financial literacy survey with its results and common recommendations. We also provide a short test containing 10 basic multiple choice questions that consumers can take to assess their basic knowledge of the most common financial terms and understanding of basic principles. • The SBA has participated in cooperation with the banking ombudsman on creating television programme broadcasting weekly on Slovak newscast television. The aim of the programme was to bring the TV viewers a different perspective on financing and finance management by offering them practical advice and easily understandable explanations. The programme had been broadcasted for about 6 months. • The SBA also cooperated with government and the Ministry of Education to improve financial education at secondary schools. The main focus of the work consisted of providing professional opinion and materials on the matter.

Children &

YOUTH

Activities of the Slovak Banking Association “More than the money” educational project: the SBA is currently preparing and organising a new educational project focused on financial education of children and youth called “More than the money”62 together with Junior achievement Slovakia63. - The primary target groups are basic school pupils from 10 to 15 years old and middle school students. - The secondary target group is teachers, who choose to extend their teaching skills in the field of financial literacy in an accredited continual innovative education programme. - Tertiary target audience includes parents, and wider family and friends, with whom pupils and students discuss their school assignments and homework. The programme contains 10 chapters. Individual chapters will prepare young people to be able to manage tasks and solve problems regarding money and finance, but they also put emphasis on developing knowledge in financial literacy. Improving financial literacy among young people is realised in the programme by experimental methods, consultants from business practice, practical exercises and interactive online textbooks. The project is scheduled to be executed for the first time during the academic year 2012-2013. http://www.sbaonline.sk/files/subory/analyzy/verejne/Finacnagramotnost.pdf http://www.sbaonline.sk/financne-vzdelavanie/ 62 http://www.viacakopeniaze.sk/showdoc.do?docid=973 63 http://www.jasr.sk/showdoc.do?docid=854 60 61

62

Slovakia

www.sbaonline.sk

Activities of the members of the Slovak Banking Association Based on the SBA short survey, banks are actively organising different projects of financial education for young people. Activities of banks in youth financial education are focused on one bigger project per bank and a couple of smaller projects. Range of bank activities in financial education is quite wide. Most of Slovak retail banks are running at least one project focused on youth financial education. The most successful projects are notably the following: • “www.uplnazverina.sk”64: a project mainly focused on children from 9 to 12 years old. Educational interactive online game is a unique project that teaches children about finance and responsibility in relation to money management. The game is based on the real-life strategy and has a touch of philanthropy. Children take care of different animals in their shelter, provide them with food, toys, play with them and must also manage their finances so that they always have enough money to conduct their animal home. Project runs for a second year now. In the first couple of months the web page has been used by 80.000 people. • “Financial literacy project” on secondary schools: lectures on Financial literacy were held as part of teaching on the subject of social studies. The project lasted three months during which lectures were attended by 1930 students from 37 schools. • “HalvaPäta”65 project is focused on high school students and their creativity and offers young people a unique experience to stimulate their creativity, their ability and promotion of teamwork by finding innovative solutions to business environment assignments. The programme allows students to solve practical assignments with the assistance of experts during a competition day. At the close of the day, the competing teams present their solutions to the award jury, composed of managers from banks. The programme achieves a multiple effect, a unique experience for students and many interesting new ideas and solutions for banks; while uncovering hidden talents and potential employees from among the students. The project is running its second year now and was attended by 180 students during its first year. • “Banks in action”66: this project was focused on high school students. Students created their own fictional bank in this programme, and as directors they decided about loan rates, investments in marketing, research and development with a focus on creating the highest profits at the end of the competition. Project runs for four years, it was attended by more than 7,500 students from 143 schools. • “Building, Understanding and Skills”67: the project was created in 2009 with the cooperation of Children from the Slovakia Foundation for second degree elementary school students. It is for economically disadvantaged communities, focused on community education and education of children in orphanages. Project methodology provides a systematic and comprehensive solution that helps young people to become active, independent and responsible, and to be better prepared for successful integration into society. The programme was completed by 2,688 young people and integrated 64 communities during its three years’ existence.

http://www.uplnazverina.sk/app/ http://www.jasr.sk/showdoc.do?docid=1039 66 http://www.jasr.sk/showdoc.do?docid=935 67 http://www.nds.sk/aktivity/projekty/city-bus/ 64 65

63

Slovakia

www.sbaonline.sk

• “Game million”68: is focused on high school students. Game million encompasses 30 basic topics of finance and general outlook, such as the employment relationship, the banking system, tax, education and qualification, the real estate market and many more. Players are improving their financial literacy in a fun way by playing the role of a university student who is starting his/her working career. All the information, which players gain during the game reflect on actual Slovak legislation. This “young” project has been running for four months only, but the game has been played by more than 12,000 people. • “Get to Know Your Money“69: this project is focused on secondary school students and creates conditions for acquiring basic orientation in the world of finance for young people. The project is aimed at increasing financial literacy, to help young people learn to manage their finances, to develop young people’s life skills (for navigating the world of finance), to introduce financial education into key competencies. Within the project framework a modern educational e-learning programme was developed for the secondary school students bearing the same name as the project. This project has run from 2001. The project has 95 participating schools, 125 trained teachers and 5,000 students participated in the programme. • “Conservative Economic Quarterly Lecture Series”70: is a quarterly series of lectures by renowned personalities from abroad on economics, economic thinking and current economic issues. The primary objective is to contribute to the training of a group of educated people with abstract and synthetic economic thinking who will be able to apply the lectures to their personal and professional lives, and who will be able to explain clearly the nature of economic principles to others. Lectures have been attended by more than 9,000 students over the last three years. http://www.hramilion.sk/ http://www.poznaj.sk/Default.aspx?CatID=105 70 http://www.konzervativizmus.sk/article.php?ceqls 68 69

64

Slovenia

www.zbs-giz.si

Activities of the Bank Association of Slovenia The banking industry has established two boards within the Bank Association of Slovenia (BAS): the Education Board and the Board for Retail Transactions. • The Education Board proposes initiatives and cooperates in the identification of education needs for supplementary education and training in banking, it prepares positions, proposals and starting points for the preparation of education programmes and cooperates in establishing the objectives of important education forms. It also cooperates in the preparation of starting points and the development of proposed knowledge standards for professional profiles in banking, in the identification of needs and the preparation of proposals for certified education, in the preparation of initiatives and proposals in the integration of banking knowledge into the formal education system and in the evaluation of education. • The tasks of the Board for Retail Transactions is to monitor and examines developments from the field of operations with private parties and notably addresses topics harmonised with the BAS work programme. Besides the activities listed above, the BAS performs some other tasks which may be considered a contribution to the arrangement of affairs directly or indirectly concerning financial education. The basic arrangement of relationships derives from the banking code. The BAS has also made recommendations for the development of a bank complaints’ system and a system for the extra-judicial settlement of disputes between clients and banks in the form of a settlement council.

Activities of the Bank Association of Slovenia in cooperation with public authorities The cooperation of the Bank Association of Slovenia (BAS) with members and/or external institutions, especially with the Bank of Slovenia (BS) and the Consumer Association of Slovenia (CAS) as well as with the Ministry of Finance, the Competition Protection Office and the Information Commissioner resulted in the publication of the following materials: - general business requirements for banks in Slovenia; - pattern of general conditions for providing payment services; - recommendations on the methods of calculating interest in retail transactions; - information about the risks associated with taking foreign currency loans; - what do we know about banking transactions? - the safe use of bank-payment cards; - recommendations for the use of electronic market channels; - rules and procedures for changing bank; - the euro for all of us; and - Single Euro Payments Area (SEPA) in Slovenia.

Activities of the Bank Association of Slovenia in cooperation with the media The Bank Association of Slovenia (BAS) also cooperates with the media, from newspapers and magazines to radio and television programmes. Most of the content it contributes is informative and targeted. The truth is that this information is not “systemically” arranged, which means that there has been no programme or plan prepared or adopted setting the target groups, contents and activities, as well as the tools and methods for their implementation. Talks have recently been held with national television and radio about the systematic development of content, terms, target groups, and so on. 65

Slovenia

www.zbs-giz.si

Activities of the Slovenian public authorities At the end of 2010 the Slovenian authorities approved the so called National Financial Education Programme (NFEP). It is a programme aimed at improving the financial capability of individuals in a systematic and coordinated manner. It promotes cooperation between the public sector and non-profit organisations, companies, associations and chambers, NGOs, etc., by clearly delineating their areas of competency. The NFEP identifies problems and proposes solutions to enable individuals to distinguish between important information on financial products/services from market advice and market information. Since individuals undergo different formal and non-formal education programmes, it is impossible to provide a ‘one size fits all’ approach that would apply to everyone. In view of this, information should be interconnected, updated, coordinated, and disseminated in a variety of ways. Since such information can be disseminated at various costs, depending on the medium used (internet publications, brochures, leaflets, manuals, newspaper publications, radio, television, through school curricula, round tables, conferences, lectures and campaigns), the NFEP distinguishes between short- and long-term activities aimed at implementing targeted financial education.

Children & Activities of the Bank Association of Slovenia

YOUTH

For the last few years, the BAS education centre has cooperated with the formal school system in the field of banking and finance trough: • reform of secondary and higher education programmes (accounting clerks, banking sales specialists), development of modules with banking and financial contents, • development of professional standards for banking sales specialist at the fifth and sixth levels of education.

Activities of the Slovenian public authorities • Financial education has already been indirectly integrated into the curriculum for primary and secondary schools through various school subjects; however, it should be more systematically and comprehensively integrated into general education curricula at the primary and secondary school levels. • Children in Nurseries’ education scheme: the responsible body to implement programmes in the education scheme is the Ministry of Economy. It is funded by the European Structural Funds at the Ministry of Economy. Education content is determined by experts. The programme lasts 2 years. Key living conditions include experiencing and understanding everyday life. • Education scheme Children in Primary Schools: the responsible bodies to implement programmes in the education scheme are the Ministry of Economy (introduction of financial education into the Slovenian education and schooling system) and Ministry of Finance (central web page). It is funded with the European Structural Funds at the Ministry of Economy.

66

Slovenia

www.zbs-giz.si

Central web page remains financially impartial. Education contents are determined by experts. Programme lasts 2 years. Key living conditions are experiencing and understanding everyday life. Fundamental needs for financial capability include development of basic skills and knowledge to balance expenditure with income, keeping track of personal finances, planning ahead, basic risks and where to find advice - via internet, brochures, information points (libraries, etc.), lectures.

Activities of the Bank Association of Slovenia • Young Persons in Secondary Schools education scheme: the responsible bodies to implement programmes in the education scheme are the Ministry of Economy (introduction of financial education into the Slovenian education and schooling system) and Ministry of Finance (central web page). It is funded by the European Structural Funds at the Ministry of Economy. The central web page remains financially impartial). Education content is determined by experts. The programme lasts 2 years. Key living condition is preparation for independence. Fundamental needs for financial capability include development of skills and knowledge to balance expenditure with income, keeping track of personal finances and planning ahead, basic understanding of financial products/services, principles of risk, roles of providers, supervisory authorities and consumer organisations, via internet, brochures, information points (libraries, etc.), lectures. • Young adults in higher education institutions – education scheme: the responsible bodies to implement programmes in the education scheme are the Ministry of Economy (consumer counselling and information (public) service) and Ministry of Finance (central web page). It is funded by the Ministry of Economy within the framework of the funds for performing consumer counselling and information (public) service and the funds for carrying out consumer protection projects. The central web page remains financially impartial. Education content is determined by experts. Duration of such a programme is indefinite. The key living condition is preparation for independence. Fundamental needs for financial capability include comprehensive competency to balance expenditure with income, keeping track of personal finances, planning ahead, selection of financial products/services and information about financial trends, via Internet, brochures, information points (libraries, toll-free telephone lines, etc), lectures/ presentations, topical contributions in the media. • Young adults outside the formal education system, education scheme: the responsible bodies to implement programmes in the education scheme are the Ministry of Education and Sport (MES) (project learning for young people), Ministry of Finance (central web page), Ministry of Labour, Family and Social Affairs (development of new education courses), Ministry of Economy (consumer counselling and information (public) service). Project learning for young people is funded with the European Structural Funds at the MES. Consumer counselling and information (public) service is funded by the Ministry of Economy with the funds for carrying out consumer counselling and education as well as information (public) service and the funds for implementing consumer protection projects. The central web page and development of new education courses remain financially impartial. Education contents are determined by experts. Duration is indefinite. Key living conditions are a preparation for independence, the start of working life, child bearing, unemployment, poverty, over-indebtedness. Fundamental needs for financial capability include comprehensive competency to balance expenditure with income, keeping track of personal finances, planning ahead, selection of financial products/services, information about financial trends, via internet, brochures, lectures/presentations, information points (social work centres (hereinafter: SWC), libraries, toll-free telephone lines, etc.), topical contributions in the media. 67

Spain

www.aebanca.es

Activities of the Spanish Banking Association One of the Spanish Banking Association’s key financial education actions is a framework cooperation agreement with the Bank of Spain and the Spanish Securities Exchange Commission (CNMV) to encourage banks to take part in their Financial Education Plan 2008-2012. This plan has been designed to raise citizens’ level of financial literacy to ensure they are properly informed and can make the right financial decisions. The member banks of the Spanish Bankers’ Association devote sections of their web-pages to provide simple and transparent information to retail clients on specific topics, in particular on savings’ products, investment funds and pension plans, in order to make it easier for customers to make improved financial decisions. They also inform customers on the specifics of the Spanish legislation regarding those products, their fiscal treatment, etc. Accordingly, banks have developed wide-ranging employee training plans so staff can inform customers appropriately about the characteristics of their products and their associated risks. Banks are also simplifying the content of contracts to make them easier to understand.

Activities of the public authorities In the Spanish banking system, financial authorities, and more specifically, the Bank of Spain, have assumed an important role regarding information to bank customers aimed at protecting their interests and ensuring that their acquisition of banking products and services is made with the full knowledge of conditions and the products’ characteristics. In addition to a very detailed regulation on banks’ transparency and information obligations regarding their products, the Bank of Spain has established a website called Portal del Cliente Bancario (Financial Watchdog, http://www.bde.es/clientebanca/home.htm). Its purpose is to provide guidance to clients regarding their relationship with banks and to provide them with information that may be useful to them in their decisionmaking with regard to the most usual bank products and services. To that end, the Bank of Spain’s website provides information on the characteristics of a range of bank products and services (loans, deposits, credit cards, checks, etc.); on the rights of bank clients, when acquiring them; on basic financial concepts (interest rates, commissions and fees, …etc.); and finally on banks that can offer and market those financial products. Furthermore, the Bank of Spain’s website provides information on the procedure to be followed when submitting complaints to the “Complaints Service” of the Bank of Spain, if a customer is dissatisfied with any bank action or decision. In line with the leading role adopted by authorities in the field, on 19 May 2008, the Ministry of Finance, the Bank of Spain and the Securities Exchange Commission (CNMV) launched a Financial Education Plan that will be implemented in the period 2008 to 2012. The plan tried to meet the challenges facing Spanish citizens when operating in a financial environment more complex than ever. The plan covers all population groups but mainly focuses on two specific groups which in turn are divided into further subgroups: students and adults. The plan identifies the most appropriate channels to reach each group, as well as the specific educational needs of each group. The plan is being implemented progressively in the above-mentioned period of time, and covers all retail financial services. As part of this plan the Bank of Spain and the Spanish Securities Exchange Commission (CNMV) have also set up a web portal called Finanzas para Todos (“Finance for All”71) , which includes practical information about managing a household budget, getting to grips with the commonest banking terms and products, and under68 standing their contractual terms. www.finanzasparatodos.es

71

Spain

www.aebanca.es

Children &

YOUTH

Activities of the members of the Spanish Banking Association The Spanish Bankers’ Association runs a University College on Financial Studies (CUNEF) and gives support to a Masters’ programme of the University in Madrid, addressed mostly to specialised journalists. The main Spanish banks have also set up a variety of financial education programmes to promote the understanding of basic aspects of the economy and finance, and increase customers’ confidence and security when using financial services: - In some instances, these initiatives have been specifically aimed at the academic world. For example, A bank has designed a large-scale programme to be run in Spain, including talks at universities. The programme is being brought to a wider audience via its web portal www.finanzasparamortales.com (finance for mortals), which aims to improve university students’ understanding of basic aspects of the financial world. These programmes are being extended outside of Spain to other countries where the Group operates, such as the United Kingdom and Brazil. - Financial literacy is also a strategic priority in corporate responsibility for a well-known bank. This commitment is embodied in the Global Financial Education Plan Valores de Futuro. El dinero en nuestras vidas (Money in Our Lives, www.valoresdefuturo.com),an educational programme which has been implemented in elementary schools and in the first and second cycles of ESO, and is based on a number of activities that address the key contents related to money within the framework of values’ education. Up to date, for the period 2009-2012, participation has grown, involving 10,000 schools and reaching 2 million participants. - Other banks, such as a well established bank, are sponsoring finance and economics’ professorships, running specialist courses for finance and economics’ journalists, and programmes of financial education courses in schools. - Spanish banks also largely support initiatives that promote children’s education in more disadvantaged communities, providing subsidies that facilitate access to school and allocating funds for building and fitting out schools.

69

Sweden

www.swedishbankers.se

Activities of the Swedish Bankers’ Association and its members with public authorities The Swedish Financial Supervisory Authority has together with the banks: • developed the activities of the Swedish Consumers’ Banking & Finance Bureau, inter alia, with regard to price and conditions comparisons. The Swedish Consumers’ Banking & Finance Bureau is an independent agency whose objective is to meet consumers’ need for neutral information and guidance with regard to financial services. Furthermore, it provides customer support in dealings with finance companies. • launched a website www.finanskunskap.se for education in personal finance. This is a portal for educational material in personal finance. The primary aim is to reach out with information on available material, educational materials, courses etc. to teachers in the upper secondary schools, but also to others who have an educational responsibility. The Swedish Bankers’ Association has also, in conjunction with other financial organisations, driven the issue of introducing personal finance as a separate subject in upper end of secondary schools.

Children &

YOUTH

Activities of members of the Swedish Bankers´ Association Many of the Swedish Bankers’ Association’s members are actively working to increase children’s and young people’s knowledge of personal finance. The banks’ private economists have lengthy experience in general education in personal finance. They often visit schools, companies and have meetings with customers. They also provide advice in the field of private economics. Furthermore, these economists have also produced extensive material in the form of textbooks, magazines, brochures etc., and they often appear in the media. On their websites they have information especially adapted to children as well as web-based interactive games to stimulate the interest in personal finance. • Gilla-Din-Ekonomi. (“Like-Your-Economy”) is a key network involved in raising awareness of personal finance is the network. Its aim is to increase knowledge on personal finances to citizens of all ages. The goal is to have a population willing to take responsibility for their own financial situation; which is knowledgeable enough to make rational decisions and motivated to become more involved in practice. The network handles issues concerning education and information in partnership with different organisations which work on financial education. These include various government authorities, consumer agencies, and the financial industry. The network is a partnership between 35 players, including most of the Bankers’ Association’s members. The Swedish Bankers’ Association supports this project.

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Switzerland

www.swissbanking.org

Activities of the members of the Swiss Bankers Association Various member banks of the SBA support and provide financial education. They offer courses in order for consumers to gain background knowledge in real estate, retirement arrangements, investment and other economy topics, they give financial support to financial education programmes, offer websites with comprehensive financial literacy information for different target groups such as youth, students and adults and offer financial literacy information linked with information on financial products.

Activities of the public authorities and other bodies Various Swiss public authorities and different bodies support and provide financial education such as the online platform www.budgetberatung.ch of different state-run, ecclesiastical, and private debt/budget information centers provides comprehensive information on budget management.

Children &

YOUTH

Activities of the Swiss Bankers Association The Swiss Bankers Association (SBA) strongly supports the integration of more financial education in the curricula for Swiss public schools and the vocational business schools for all professions and provides financial literacy information through different channels. • In September 2011 www.money-info.ch website was launched to serve as a guide to the various online financial literacy offers; programmes, tools, and a glossary. For the moment, the website targets the Swiss German and the French part of the country. The available information is sorted by four different target groups youth, parents, adults, and teachers. With the launch of the website a financial literacy contest for the two secondary school levels was carried out. Groups of classes were invited to hand in a contribution which deals with the topics of money and/or finance, emphasising the responsible use of money. In March 2012, six contributions in each of the two categories were rewarded by a donation to the class treasury. The contest will be repeated. Following the successful launch of the pilot project the SBA plans further steps to expand its financial literacy activities at a larger scale during the next few years. • SBA own publications/ brochures such as “Information for Customers of Swiss Banks Concerning the Avoidance of Dormant Accounts”, available on the SBA website. • model information briefings that member banks can then publish under their own corporate identity i.e SBA’s model brochure “Special Risks in Securities Trading” designed to inform the public about the special risks encountered when dealing in options, forwards and futures and structured products, available on the SBA website. • information files for bank clients • initiatives for economy/money mediation programmes for schools such as Jugend und Wirtschaft (“Youth and Economy”) • “Banking Today 2.0” learning programme for initial vocational training in banking which is partly used on the SBA’s financial literacy website • presentations on the Swiss banking centre for economy classes at high schools. http://www.jugend-wirtschaft.ch

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Switzerland

www.swissbanking.org

Activities of the public authorities and other bodies Various Swiss public authorities and different bodies support and provide financial education for children and youth: • the Swiss National Bank offers comprehensive information on financial literacy issues for high schools and vocational business schools74; • the non-profit organisation Pro Juventute provides, with the support of banks, financial education programmes called Potz Tuusig75 for kindergarten and Kinder-Cash76 for primary schools; • the non-profit organisation Caritas plays an important role in debt prevention and debt consultation.

http://www.iconomix.ch http:// www.potz-tuusig.ch 76 http://www.kindercash.ch 74 75

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United Kingdom

www.bba.org.uk

The British Banker’s Association’ support to the recent public authorities’ initiatives In July 2008, HM Treasury and the Financial Services Authority (FSA) published their joint Financial Capability Action Plan, which offered a comprehensive overview of financial education initiatives in the UK. The BBA welcomed this approach and expressed its ongoing support for financial education in schools. • The Money Advice Service (MAS): provides free financial help and an additional range of services – offering for the first time – face to face and telephone meetings. MAS with its independent status is, together with the Personal Finance Education Group (PFEG) – the UK’s leading finance education charity – is thus gaining oversight and stewardship over steering financial education initiatives for young people across the country. Its core objective is to enhance the understanding and knowledge of members of the public of financial matters. In 2012, MAS undertook a strategic review of the educational interventions of the financial services’ industry, to inform and improve the provision of financial education for young people in the UK. The review’s objectives were: • to map the range of education initiatives funded by the financial services industry to create a single view • of the landscape; and • research education and behaviour change to identify both global best-practice in the field of financial education and examine whether successful types of interventions in other fields can be applied to finance. The review has pointed to a strategic development agenda for financial education, including: • developing a set of measurable and robust key performance indicators; • establishing a good practice forum for practitioners and stakeholder to consider strategy; and • working with PFEG to increase the impact, extend the reach and, ensure the sustainability of the ‘My Money Week’ initiative targeted at schools. MAS aims to develop a unique code of practice for financial capability programmes. It aims to have made this voluntary code available from 2013, ensuring that resources are invested in financial education programmes that will have the maximum benefit in the long term. The BBA engages with MAS on numerous levels and moving forward, will continue to offer its support for MAS in the area of financial education. The BBA is a founding member of PFEG and continues to support the work they are doing. A number of BBA members have also worked with the charity on individual initiatives. Furthermore, representatives of several BBA members work directly with school teachers to provide them with the necessary skills to be able to bring financial education effectively into their classrooms.

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United Kingdom

www.bba.org.uk

Activities of the British Banker’s Association • The BBA provides information for consumers. It has developed numerous leaflets, which are delivered through member banks and available on the BBA’s public website. The BBA offers a ‘latest consumer information’ microsite, which brings together banking knowledge for consumers, e.g. a glossary on banking terms, how to avoid fraud, advice on coping with financial difficulties, banking on behalf of people who lack capacity to make decisions etc77. • In April 2012, a representative of the BBA attended the first ever Child Youth and Finance International (CYFI) Summit in Amsterdam. The BBA will continue to provide its support to the European Banking Federation (EBF) in terms of its role in the organisation of the CYFI regional meeting – scheduled to take place in November 2012 in Brussels.

Activities of the members of the British Banker’s Association The BBA’s member banks also have their own individual initiatives to raise financial capability and certain BBA members have been involved in the recent strategic review of financial education carried out by MAS (as outlined above). In addition to the work in schools, outlined above, many BBA members conduct their own work directly in communities and with their customers at a local level. BBA members also provide various banking products for children, including, a Junior Cash ISA, a savings account which is specially designed for children.

Children &

YOUTH

The British Banker’s Association’ support to the recent public authorities’ initiatives • Education in schools: personal financial education has been further embedded in the national curriculum through secondary-level Personal, Social, Health and Economic (PSHE) education and the functional maths component of maths in the General Certificate of Secondary Education (GCSE). In June 2012, a private members’ bill was introduced in the UK’s House of Commons, calling for financial literacy to be included in the national curriculum, which will now be subject to further debate. In addition, the Personal Finance Education Group has also been working, for the last three years, on the deliverance of the ‘My Money Week’ initiative, aimed at youngsters between the ages of 4 and 19 (although a particular emphasis is placed on primary schools). MAS has expressed that it will work with PFEG to sustain this initiative.

Activities of the British Banker’s Association • In April 2012, a representative of the BBA attended the first ever Child Youth and Finance International (CYFI) Summit in Amsterdam. The BBA will continue to provide its support to the European Banking Federation (EBF) in terms of its role in the organisation of the CYFI regional meeting, scheduled to take place in November 2012 in Brussels. 74

www.bba.org.uk

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CREDITS Editor Responsible: Guido Ravoet, EBF Chief Executive Editor-in-Chief:

Sébastien de Brouwer, Executive Director Retail Financial services, Legal, Economic and Social Affairs [email protected] Florence Ranson, Head of Communications [email protected]

Authors:

Noémie Papp, Policy Adviser Consumer Affairs [email protected]

Special thanks to:

Olga Naszkiewicz, Seconded adviser [email protected] Members of the Consumer Affairs Committee Members of the Communication Committee

Sub-Editor:

Alison Bell, Coordinator & Editor, Economic and Monetary Affairs

Designer:

Sébastien Dieu

Launched in 1960, the European Banking Federation is the voice of the European banking sector from the European Union and European Free Trade Association countries. The EBF represents the interests of almost 4,500 banks, large and small, wholesale and retail, local and cross-border financial institutions. Together, these banks account for over 80% of the total assets and deposits and some 80% of all bank loans in the EU only. The EBF is committed to supporting EU policies to promote the single market in financial services in general and in banking activities in particular. It advocates free and fair competition in the EU and world markets and supports the banks’ efforts to increase their efficiency and competitiveness. Use of pictures: www.fotolia.com European Banking Federation a.i.s.b.l. 56 Avenue des Arts 1000 Brussels www.ebf-fbe.eu EBF© November 2012 Please mention source when quoting.

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