Financial Literacy for Children and Youth in Canada

Transcription

1 Financial Literacy for Children and Youth in Canada Jared Penner Child and Youth Finance International Manager, Global Engagement and Evaluation Nov. 6, 2014

2 The Child and Youth Finance Network The current picture The Vision and Mission of CYFI The current cohort of children & youth is the largest in history, with over 2.2 billion. However: Almost 1 billion of the world s young people are living in poverty 12.6% of youth are unemployed globally Less than 10% of children have access to financial education and financial inclusion Only 37.9% of youngsters have formal financial institution accounts Empowering all children and youth across the world, through a network government authorities, financial services providers and youth serving organizations: increasing their financial capability, enhancing their awareness of social and economic rights improving their access to appropriate formal financial services, Reshape the financial ecosystem for enabling future Economic Citizenship Reaching 100 million children and youth through the CYFI Network in 100 countries with integrated financial and educational services 2

3 The Evidence So Far Overall, research on the effects of financial education for children and youth is encouraging, but it is not conclusive. Effects can be divided into Financial Knowledge - Strongest impact showed through games and integration in other subjects. Financial Attitudes - Strongest effects came from an intervention providing matched savings accounts, mentoring, and financial education workshops. Financial Behavior Modest, but robust behaviour change participating in interventions with a financial education component. Strongest effects combines social and financial education with a methodology focused on learning by doing. (Aflatoun, 2014) Note on Access plus Education: Another case for learning while doing. Gradually impact of combining financial education with access to savings is showing, including on financial literacy (SALSA Uganda and PISA) and account uptake (YouthSave).

4 Brazil CONEF Structure

5 Three strategic partnerships in Malaysia Ministry of Education In collaboration with MOE to integrate FE elements into the core subjects of new school curriculum [2014: primary; 2017: secondary]. Elements to be embedded: - Money, source of income and career choice - Financial responsibility and decision making - Money management and planning - Savings and investment - Credit and debt management - Risk management, wealth protection and insurance Financial Service Providers Responsible money management through co-curriculum: - School Adoption Programme (since 1997) FSPs conduct activities related to banking, insurance and basic financial knowledge in 10,000 adopted schools. - School Financial Club (since 1999) platform for schools - Making available FE materials, tools & info Pocket Money book (since million copies p.a.), interactive website duitsaku.com (since k members) and FE workshops for school children (since 2002) Teacher Training Institutes Capacity building and support for teachers: - Equipping teachers with financial management skills to be able to teach effectively - POWER! Programme for teachers in partnership with teachers training institutes - Development of guidebooks and lesson plans for teachers

6

7 Portugal s National Financial Literacy Plan Launched in November 2011 by the National Council of Financial Supervisors: Banco de Portugal, Portuguese Securities Market Commission (CMVM), Portuguese Insurance and Pension Funds Supervisory Authority (ISP) Multisectoral involvement targeting different population groups (young people, workers and vulnerable groups e.g. unemployed, immigrants, pensioners) Priority placed on integrating financial education into primary and secondary schools

8 How they promote Financial Education in Schools Drafting Core Competencies (Budget Management, Financial Systems, Saving, Credit, Ethics, Rights and Duties) Desiging National Teacher Training Plan Producing Pedagogical Materials Todos Contam National Website and Financial Education Competition Financial Literacy Day Oct. 31st

9

10 Goal #1 Information at key points in the lives of young Canadians Taking Advantage of Teachable Moments Involve teachers, parents, private sector and NGOs to maximize touch points Make it fun and make it real.

11 Goal #2 Help in setting financial goals and saving for the future Helping young people see the importance of saving, no matter the amount. Understand the role of finance in their lives. Empowerment through saving

12 Goal #3 Encouraging Lifelong Learning Building quality relationships with financial institutions Inspire a thirst for financial knowledge in young people Make information accessible to all ages.

13 Goal #4 Practices that contribute to financial well-being and to protecting oneself from financial risk Integration of entrepreneurship and lifeskills education Awareness of risks and rewards, as well as online risks to data security. Faciliate Financial mentors

14 Thank you! Jared Penner ChildFinance ChildFinance