Children, Youth & Finance Action for Sustainable Outreach

Transcription

1 Children, Youth & Finance 2014 Action for Sustainable Outreach

2 2 Children, Youth & Finance: Action for Sustainable Outreach

3 Children, Youth & Finance 2014 Action for Sustainable Outreach Children, Youth & Finance: Action for Sustainable Outreach 3

4 Child and Youth Finance International (CYFI) December 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of Child and Youth Finance International. Please contact CYFI Secretariat PO BOX Amsterdam, The Netherlands Tel +31 (0) info@childfinance.org This report and additional online content are available at For comments, please contact info@childfinance.org For latest data, please visit 4 Children, Youth & Finance: Action for Sustainable Outreach

5 Acknowledgements First and foremost, we would like to thank the partners and collaborators in the CYFI Network. It is through their tireless work that the Child and Youth Finance Movement will be able to generate the global shift in greater financial inclusion and Economic Citizenship Education for children and youth throughout the world. We would also like to take this opportunity to thank all the people who made this publication possible by providing information on outreach figures, programming details or policy insights. Their commitment, knowledge and expertise have been invaluable in helping shape this year s edition of Children, Youth and Finance. In particular, we would also like to thank the CYFI Working Groups and National Platforms who assisted in the creation and compilation of this document: The Research Working Group members who have created the CYFI Theory of Change, contributed to the CYFI Country Mapping Surveys and who have been leaders in pioneering research in the field of financial capability for children and youth. The Education Working Group members who collaborated on the establishment of the Learning Framework for Economic Citizenship Education and who have contributed to the CYFI Education Survey. The National Authorities who have collaborated with the CYFI Secretariat and have shown interest and passion for advancing national strategies on economic citizenship for children and youth. We would also like to thank our donors and pro-bono partners, whose faith and unwavering support has allowed us to do so much in such little time. We thank them for dedicating your time, energies and passions to this initiative and for sharing our vision. While Children, Youth and Finance was primarily written by Floor Knoote, CYFI s Research Coordinator, and Jared Penner, CYFI s Manager for Global Engagement and Evaluation, we would like to extend a special thank you to Shaireen Moon, who interned with CYFI and provided valuable contributions to this publication over the past 4 months. We would also like to thank the following CYFI Secretariat Staff, Interns and Volunteers who provided contributions and editing services to this year s Children, Youth and Finance: Jeroo Billimoria, Robin Willing, Sofia Ortega Tineo, Karina Avakyan, Ignacio Bianco, Rene Cuartero, Kimberley DeRose, Irene Diaz Soto, Abram van Eijk, Bianca Isaincu, Akwasi Osei, Meis Salameh, Daniele Scauso, Caitlin Watson, Robin Willing, Elliot Cole, Sean Filidis, Ilyana Panteleeva, Oleksandra Pravednyk, Priyanth Pathmarajah and Yvette Ruzibiza. A special acknowledgement goes out to Liina Liblik, CYFI s Communications Coordinator who formatted and designed the document. The Child and Youth Finance Team Children, Youth & Finance: Action for Sustainable Outreach 5

6 Contents Acknowledgements... 5 Executive Summary...8 Children, Youth & Finance: Action for Sustainable Outreach.. 12 Chapter 1 Introduction to Child and Youth Finance International About Child and Youth Finance International The Movement s Roadmap Child & Youth Finance International Activities Chapter 2 Terms and Definitions Key Terms: CYFI s Model of Economic Citizenship Key Terms: Assessing Global and National Efforts. 33 Chapter 3 Compiling Children, Youth and Finance Introduction Compilation Methodology Limitations Chapter 4 Building the Case for Economic Citizenship Children and Financial Capability Financial, Social and Livelihoods Education and Their Impacts on Young People Conclusion Chapter 5 National Policies Towards Economic Citizenship Introduction Economic Citizenship Education Financial Inclusion Building Sustainable Livelihoods for Youth Conclusions Children, Youth & Finance: Action for Sustainable Outreach

7 Chapter 6 Country Case Studies Introduction Africa The Americas Asia-Pacific Europe Middle East and North Africa Chapter 7 Advancing Economic Citizenship through the CYFI Network Economic Citizenship Education Programs of Civil Society Organizations Financial Institutions National Authorities Youth and the CYFI Network Outreach of the CYFI Network Conclusion Chapter 8 Key Findings and Policy Recommendations Key Findings Recommendations Conclusion Annex A: Bibliography Annex B: Glossary. 164 Annex C: List of Countries in State of the Field. 172 Annex D: ECE Rapid Mapping Report Template Annex E: CYFI Partner Pages Children, Youth & Finance: Action for Sustainable Outreach 7

8 Executive Summary Millions of children throughout the world are dealing with adversity, are facing extreme deprivation, have no prospect of finding employment and have no access to finance to build a livelihood and break their cycle of poverty. Around the world, there are young people heading households, providing the main income for their families or working their way through school. The provision of more or complete autonomy for children and youth within the financial system (being able to control one s own finances within certain conditions), and having the skills needed to thrive within the financial and the labor markets, could provide a significant benefit and additional means of survival for a great number of young people. Financial capability and the creation of sustainable livelihoods of children and youth unquestionably is a key focus point on the agenda of national and regional authorities, civil society organizations and financial institutions. This is in line with the current global focus on creating a savings culture, improving saving habits and creating employment opportunities for young people. However, despite the growing evidence that financial inclusion, access to savings and asset building can be beneficial for young people, there is a significant lack of focus on financial inclusion in national policies for the general population, let alone specifically for youth. This is partially linked to a current regulatory framework in which minors are still not allowed to open and operate an account without parental supervision. Cases of regulatory reform in the interest of the child do exist and should be pushed forward as benchmark examples for those national authorities that are willing to advance the financial inclusion of young people. Similarly, some exemplary cases of holistic curricula, which include all components of Economic Citizenship Education, can be used as a learning model for curriculum integration and for those programs executed by civil society and other education providers. Building the Case for Economic Citizenship The evidence base for the financial capabilities of youth has grown exponentially in the last few years. Gradually, the body of evidence for family assets and savings and individual accounts is growing extensively. All in all, the results of these studies are positive, indicating improved savings behavior and educational outcomes as key outcomes for young people. It remains to be seen whether financial inclusion, in its many forms, may also be linked to increased confidence, outlook on the future, and employment for youth. Recent research on the role that financial education plays in the lives of young people draws an encouraging, but still somewhat mixed, picture on the impact of financial literacy initiatives. Where effects on financial knowledge appear to take place across the board, reports on effects on financial attitudes and behavior are still inconclusive. It is found that a range of situation specific features may be related to the impacts of financial education, including location and the delivery method of courses, affecting the outcomes of treatment. Moreover, there is little agreement, or supporting research, on what encompasses effective financial education and whether increasing financial literacy in young people will actually lead to better financial outcomes and behaviors. Features that have been identified as potentially having a beneficial effect on the financial capability of young people include practical learning, soft skills development and the cultivation of responsible financial attitudes and practices, findings that resonate with CYFI s Model of Economic Citizenship. The former comes back in the evidence on the combination of access to finance with financial education. Where practice has long been seen as a key component in learning and needs to be taken into consideration, the evidence on this concept linked to financial capability is still in development. It does indicate that teaching children financial capability that includes a practical learning while doing approach, could generate benefits over teaching financial knowledge alone. Existing opportunities for parents, schools and teachers to support children in the development of financial capacities to defer gratification and familiarize themselves with finance, all aid the development of a child s executive functions, underpinning their financial habits and behaviors. Last, despite a broader movement against lecture-based approaches to education (and towards more active learning methodologies) results on complementing financial education with other interpersonal life skills are rare. Those studies that are available are predominantly showing positive results, as evidence suggests that there are benefits to using a multi-pronged approach to empower youth. Financial education programs complemented with a life skills component appear to have the biggest effect on financial behavior. Moreover, results show that girls may benefit more from a multi-pronged approach than boys do. More evidence is necessary to validate those skills needed to truly build a sustainable livelihood for young economic citizens. 8 Children, Youth & Finance: Action for Sustainable Outreach

9 It is advised that future research should seek to improve the overall quality of the literature, which includes the application of robust experimental methods and the minimization of potential bias. This will help the overall value and comparability of research projects. Research should seek to explore the extent to which programs change learners attitudes as regards to money management, as well as improve savings behavior. Similarly, studies that have rendered robust positive results should be replicated, in order to impact policy and bring success to scale. In addition, the long term effects of financial education programs of any kind should be studied. As, over the years, financial education programs have been implemented around the world, their effects may be assessed in the near future. Last, research on financial education is still predominantly US focused and should include more samples from around the world. Platforms of researchers dedicated to the issue of economic citizenship should be created to bridge the regional gaps in evidence and generate research that is regionally specific and relevant to local policy makers and practitioners. CYFI is aiming to establish 5 regional research platforms to better engage local researchers in this capacity. National Policies towards Economic Citizenship In CYFI s assessment of national and regional policies towards Economic Citizenship Education, it is revealed that more than half of the sample countries either have a financial education strategy in place or currently in draft. Of those that have a strategy or are drafting a strategy, the majority focuses on young people, indicating an increasing awareness of the importance of teaching financial skills at a younger age. Financial education is further complemented by other social and livelihood skills in both strategies and curricula by an increasing number of countries. There appears to be a slight preference for complementing finance with a social education component rather than a livelihoods component, which contradicts the findings from the 2013 Children, Youth and Finance Report. The majority of countries that have integrated elements of ECE, focus on financial education as a stand-alone topic with the combined integration of social and livelihoods education relatively low across all regions. However, a growing proportion of countries are including all three elements of the ECE framework in their strategies, an encouraging development in the Child and Youth Finance Movement. Integration of financial education into national curricula appears to be higher in OECD countries. Many other countries with a strategy in place are still going through the lengthy and costly process of implementing this strategy and integrating these skills into the curricula. Conversely, there are also cases where no strategy is in place, but components of ECE have already been integrated into national curricula. CYFI encourages the formation of a national strategy regardless, in order to better facilitate a coordinated response that reaches a maximum amount of children and youth both in and out of the formal school system. The link between financial inclusion and financial education is made by some authorities, but not significantly so. Comparing the number of financial education strategies with financial inclusion strategies indicates a significant lack of focus on financial inclusion for both adults and young people. Many national authorities do collaborate with other stakeholders on the issues of financial capability, including financial service providers as well as those responsible for delivering financial education, such as youth serving organizations. These committees may be the best platform to link the issues of access and education at the national level. In the assessment of national financial inclusion strategies, it appears that only a small proportion of countries have a specific policy in place encouraging access to finance for young people. This can be attributed to the fact that many high income countries already enjoy a high percentage of their population whom are banked, thus making a financial inclusion strategy redundant. However, most countries with high financial inclusion rates still consider a financial literacy strategy to be of national importance. This is partially linked to a current regulatory framework in which minors are still not allowed to open and operate an account without parental supervision. The most common barriers for youth financial access across developing countries are minimum age and ID requirements. Some pioneering examples on financial regulation facilitating access for youth under the ages of 18 can be found in Ethiopia, Philippines and Uruguay. Initial analysis, however, indicates that minors are not generally a common target of regulation policies that allow young people to be financially included in an autonomous way. Moreover, when financial inclusion strategies do exist they do not necessarily translate into regulation that facilitates greater financial inclusion for minors. Some regulations are stronger than others in allowing access to money transactions and remittances for children and youth, which could indicate a window of opportunity when dealing with youth financial access. Additionally, a specific focus should to be given to the protection of young people s rights in financial markets, especially with new financial products and pre-paid cards becoming available to young consumers. CYFI works with regulatory bodies to map this landscape and will make this one of its key priorities in Children, Youth & Finance: Action for Sustainable Outreach 9

10 Advancing Economic Citizenship through the CYFI Network There is a general increase in holistic approaches to financial education within the CYFI network, with a significant proportion of civil society programs focusing on all three components of the Economic Citizenship Education framework. CYFI is pleased to see the increase this past year in partners and collaborators reporting that they are covering elements of financial, social and livelihoods education in their youth programming. Surprisingly, the results show that more financial education programs are combined with social education, rather than with livelihoods education. This contradicts previously held assumptions that entrepreneurship elements were a more logical complement to traditional financial literacy. Although demonstrating a preference for informal savings channel, results show that a clear majority of civil society actors included a financial access component linked to their educational programming. There is also some evidence of the knock on effects of financial literacy and entrepreneurship skills building in the teachers and family members of young people. This supports the belief that ECE, when delivered effectively to children and youth, can have a wider impact on the household and the community at large. Financial institutions in the network are offering a variety of child and youth focused accounts, with a great variety of features. Still, despite a few benchmark examples, these predominantly give minors minimum control over the opening and management of their accounts. A legal guardian is often needed to access these accounts and this can deter young people from depositing and withdrawing their savings on their own terms. Most banks offer an educational component with the account, but the duration of the lessons, and the learning methodology utilized, varies greatly. The CYFI Banking Principles are not adhered to across financial sectors on a widespread basis, providing CYFI with plenty of opportunities to inform and incentive financial institutions in the network on the integration of these components. Results further reveal that a majority of national authorities in the CYFI network are part of national strategies in their respective countries. Close to 85% of all government partners are involved with financial education either independently or in collaboration with other national stakeholders. Still, financial education remains the main focus for most national ECE related initiatives. Although some progress is being made, more work is needed to encourage national authorities to adapt the holistic framework of ECE in national curricula and polices. Furthermore, close to half of government programs currently link financial education to a savings component, confirming that a practical dimension to developing financial capability in young people is a growing practice within the CYFI network. Regulatory authorities should closely monitor progress on financial education programs to get an accurate measurement on how effective they are in relation to improved financial behaviours amongst young people. Outreach With responses from a total of 88 partners and collaborators, it is reported that the collective CYFI network is reaching 35,760,962 children under the age of 18 with at least financial products and/or financial education or entrepreneurship programming. What is more, the link between financial inclusion and education is increasingly being made within the CYFI network, as this was demonstrated through the fact that 45% of the children and youth in the CYFI network, over 16 million young people, were being exposed to integrated financial and educational services. Measuring and reporting on outreach figures is not often a requirement for national authorities and as a result is not always given the attention it deserves. Through their responsibility to their citizens, and their potential to reach significant scale, a greater emphasis should be placed on national authorities to report on the outreach and the impact of their programming. It is highlighted that data are a true public good, and are underfunded, especially in low-income countries. That must change. Technical and financial support from high-income countries is sorely needed to fill this crucial (data) gap. 1 1 United Nations (2013). A New Global Partnership: Eradicate Poverty And Transform Economies Through Sustainable development. The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda. p Children, Youth & Finance: Action for Sustainable Outreach

11 Recommendations Based on the findings of this document, CYFI suggests the following recommendations: To provide children and youth with a significant position in national financial inclusion strategies, financial regulations and consumer protection policies. To increase the focus on those countries drafting their national strategies, in order to advance a youth focus and a holistic approach to Economic Citizenship from the initiation of national policies and programs. To continue to focus on linking ECE Education and financial inclusion initiatives across the world. To ensure productive coordination and collaboration among diverse stakeholders on Economic Citizenship at the national, regional and global level. To intensify youth participation and hear youth input during the drafting and consultation phases of national initiatives on financial inclusion and education for young people. To encourage focus from all stakeholders to increase the availability of youth data for further research. CYFI believes that in order to reach 100 million children and youth by the end of 2015 with financial services and ECE, a coordinated effort is needed at the country level, with government institutions taking the lead role in this effort. While civil society has led outreach efforts up to this point, it has become clear that reaching scale globally can only be done if national governments are leading with NGOs and financial institutions taking a complimentary or advisory role. CYFI aims to remain a constant source of information and technical advice for all of its partners and collaborators. Furthermore, CYFI will continue to track the progress of the movement and provide all thoughtful insights needed to help the network reach its ambitious goals. Children, Youth & Finance: Action for Sustainable Outreach 11

12 Children, Youth & Finance: Action for Sustainable Outreach As a key step towards creating impactful and systematic change, this publication has sought to investigate the status quo for the system surrounding children and youth s financial issues. It seeks to understand the factors underlying the global financial challenges for children and youth; determine a theory of change; study innovations; assess the impact on the child and to determine the systems that need to change so that today s negative trends can be reversed. This publication is the third in an annual series of publications documenting the state of field in economic citizenship and the state of the work of partners in the CYFI network and provides an analysis of current trends and gaps which need be addressed. Children, Youth & Finance begins in Chapter 1 with an introduction and a brief history of the Child and Youth Finance Movement and its international Secretariat. It explores how the Movement was born in response to the concerns shared directly by children and youth. It outlines the Movement s target of reaching 100 million children and youth in 100 countries by CHAPTER 2 outlines the key terms and definitions used throughout the document. This includes definitions of key concepts such as national strategies and national committees as well the concepts in the CYFI Theory of Change. CHAPTER 3 outlines the methodology in collecting the data which is used to inform this publication. It details the three key surveys distributed to National Authorities, Financial Institutions and to NGOS. It also highlights the key data limitations faced in the creation of this document namely, that there exists a distinct shortage of data available on financial indicators for children and youth. CHAPTER 4 lays out CYFI s Theory of Change and the evidence available from rigorous research. The Theory of Change stresses the importance of creating the necessary systems to support the building of financial capabilities among children and youth and proposes that financial education, social education, and financial inclusion are the building blocks of empowerment and financial capability that underpin economic citizenship for children and youth. CHAPTER 5 aims to give an impression of the current status of global, regional and national policies focused on Economic Citizenship Education (ECE), the financial inclusion of young people and their sustainable livelihoods. It looks at national strategies, regional agendas and global efforts, such as the post 2015 development agenda. CHAPTER 6 highlights countries and their existing efforts in financial education programs and financial inclusion policies. It additionally looks at civil society initiatives, banking products for youth and regulation. CHAPTER 7 describes the findings of CYFI s assessment of financial institutions, education providers and national authorities in the CYFI network. It shows the connection between education on finance and experience in finance; the extent to which programs incorporate all three components of Economic Citizenship and the connection between stakeholders that are involved in financial capability initiatives. CHAPTER 8 provides a set of recommendations to the stakeholders, based on the findings of the assessment. It emphasizes collaboration, integration and the inclusion of youth participation. 12 Children, Youth & Finance: Action for Sustainable Outreach

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15 Purple page right Chapter 1 Introduction to Child and Youth Finance International Children, Youth and Finance: From Momentum to Action 3

16 Chapter 1 Introduction to Child and Youth Finance International 1.1 About Child and Youth Finance International Dedicated to enhancing the financial capabilities of children and youth, Child and Youth Finance International (CYFI) connects the world s largest Network of organizations within the field of Child and Youth Finance. We provide support in an advisory, relationship-brokerage and knowledge-sharing role to our partners who - along with our stakeholders, collaborators and supporters - are collectively known as the Child and Youth Finance Movement (the CYF Movement, or the Movement). The Movement includes national authorities, financial authorities and the world s largest financial institutions, international NGOs, bi-lateral and multilateral foundations, leading academics and, most importantly, children and youth. The Movement has one central objective: increase the economic citizenship of children and youth. This means giving all children and youth aged 8-24 the knowledge to make wise financial decisions, the opportunity to accumulate savings, and the skills to find employment, earn a livelihood and ultimately break the cycle of poverty. Launched in 2012, the Movement has already spread to over 100 countries, and through our multi-sectoral network of partners and stakeholders has reached more than 36 million children and youth. We are well on our way to reaching our goal of 100 million children and youth in 100 countries through national platforms, CYFI s Movement of partners and collaborators or through CYFI Secretariat projects and initiatives. The CYFI Secretariat connects the Network and facilitates the growth of the Movement through innovation, and enabling the sharing of best practices in order to evolve the financial eco-system for young people. Maintaining an innovative spirit, diversity and a broad range of capabilities is essential to ensure that we reach our target of 100 million children and youth Rationale Children and youth are the future economic actors whose financial decisions will dictate the future of world economies. Providing young people with the economic and social environment to prosper and the competences (financial, social and livelihoods) to thrive has a meaningful impact on the lives of individuals and the communities in which they live. Communities will benefit, as a new generation of financially capable children and youth grow up to be responsible investors and entrepreneurs. Such important skills and experiences of managing financial resources at an early age can allow for lessened financial vulnerability thereby reducing the risk of poverty caused by debt. The recent financial crisis has highlighted the need for savings and prudent financial management for all persons. This is especially true for children and youth, who are a particularly vulnerable age group. Promoting a positive financial culture in children and youth is essential to ensuring a financially literate population, capable of making well-informed decisions and of lowering financial vulnerability and risk. 16 Children, Youth & Finance: Action for Sustainable Outreach

17 The mission of CYFI is to empower all children and youth around the world, particularly those who are vulnerable and marginalized, by increasing their financial capability, enhancing their awareness of social and economic rights and improving their access to appropriate financial services so as to build their assets and invest in their own futures. Access to financial and social assets is essential to helping youth make their own economic decisions and escape poverty. - UN Secretary General Ban Ki-Moon in his letter to the 2013 CYFI Global Summit 1.2 The Movement s Roadmap Through a consultative process with the world s experts in their respective fields, CYFI created a strategic roadmap to guide it towards fulfilling its goals and achieving its mission. At the core of this roadmap are the different focus areas of the Movement. These reflect the Movement s combined macro and micro levels focuses: building the necessary financial knowledge, skills on an individual level, and on reshaping systems on the macro level systems including the financial, regulatory, educational, technological or otherwise. The focus areas and the goals of each focus area are as follows: The focus areas and the goals of each focus area are as follows: Regional and National Platforms Global Engagement and Evaluation Inclusion and Entrepreneurship Global Outreach Goal To ensure that national and regional bodies include child and youth finance initiatives in their national agendas. By 2015, 100 million children and youth in 100 countries will receive Economic Citizenship Education through national strategies and programs, and will have access to a savings account. Goal To strategically engage leading global multilaterals, international civil society organization, research institutions and young people, on policies and activities that lead to greater financial inclusion, Economic Citizenship Education and sustainable livelihoods for children and youth around the world. Goal To increase financial inclusion as well as to support and stimulate youth entrepreneurship. Goal To increase visibility and public awareness of the goals and initiatives of the Movement and CYFI s network of partners and collaborators as well as to secure financial commitments for the activities of the CYFI Secretariat. Economic citizenship Education and Financial Inclusion Goal: 100 million children and youth have access to Economic Citizenship Education and appropriate financial products by Children, Youth & Finance: Action for Sustainable Outreach 17

18 To ensure that these goals are achieved, partners of the CYF Movement have committed to create the necessary programs, provide necessary services and/or re-examine current policies. 1.3 Child & Youth Finance International Activities In the 3 short years that CYFI has been in existence, the impact of the Network has exceeded even our own expectations: CYFI s Network of partners and collaborators surpassed our 1st target reaching 125 countries and 36 million children and we are well on our way to go beyond our initial goal. Up to now, CYFI has focused our energy on garnering support and creating international, high-impact awareness. This section highlights our most notable achievements to date The 2014 High-Level Stakeholders Meeting In May 2014, CYFI hosted a High-level Stakeholders Meeting with UNCDF at the United Nations in New York. The Meeting, appropriately entitled A Chance for Change, brought together UN permanent missions, central banks, government ministries, financial institutions, multilateral and bilateral organizations, and NGOs with young people. Importantly, it allowed young people to raise their voices, calling for components of youth economic citizenship to be included in the post-2015 MDGs as well as for permanent youth representation at the United Nations itself. Attended by 340 children, youth and high-level stakeholders from 90 countries A Chance for Change: Child and Youth Finance and the Post-2015 Agenda was a high-level stakeholders meeting organized by CYFI with the support of UNCDF on May 23, It was held at the United Nations Headquarters in New York. Children and youth from across the world presented their ideas on what should be included in the post-2015 development agenda. They addressed the high-level representatives on behalf of 4,000 youth who participated in CYFI s global youth survey, the 6,500 young people involved in the DreamsBank campaign on Facebook, and 3 million impressions on Twitter. All recommendations for the post-2015 agenda were structured along the themes of basic access to financial services, Economic Citizenship Education and youth livelihoods (employment and entrepreneurship). At the meeting children and youth voiced their recommendations directly to UN Ambassadors and Special Representatives, Central Bank Governors, Ministers, and other leaders from the corporate and social sectors. They received a strong commitment from the policy makers that their asks, such as a bank account and financial education for every child and active support of youth employment, will be included in the post-2015 development agenda Global Summits Figure 1: Sectoral Representation at CYFI Global Summits Sorce: CYFI 18 Children, Youth & Finance: Action for Sustainable Outreach

19 Figure 2: Children and Youth Representation at CYFI Global Youth Summit (found on page 17 of CYF 2013) Middle East and North Africa Latin America and the Caribbean Europe and Central Asia Asia and the Pacific Africa Source: CYFI In 2012 and 2013 CYFI held a Global Summit and Awards Ceremony in Amsterdam, the Netherlands, and Istanbul, Turkey respectively. The Global Summit and Awards Ceremonies provided the Movement s partners with the opportunity to convene and celebrate their accomplishments. In 2013, 413 participants from 102 countries attended the Summit, including 101 children and youth. At both Summits the following outcomes were celebrated: Participants committed their support to the Movement s principles Participants shared best practices in Economic Citizenship Education, financial inclusion and livelihood (employability and entrepreneurship) skills Technological opportunities in the sector were discussed by experts, and the state of the Movement worldwide was presented by regional stakeholders. Regional sessions were held to allow for the sharing of experiences and joint strategy-formulation by stakeholders from the same region Support from the UN Secretary General The CYF Movement has enjoyed the support of the UN Secretary General. In his letter to the CYFI Global Summit 2013, the UN Secretary General wrote: Access to financial and social assets is essential to helping youth make their own economic decisions and escape poverty. I join you in celebrating the milestone of the Child and Youth Finance International movement now operating in 100 countries. I encourage you to exceed your target of providing 100 million children and youth with financial services that are both responsive to their needs and protective of their rights. CYFI holds Global Youth Meetings concurrently to each Global Summit. In young people aged 8 to 18 from over 40 countries, met to participate in an interactive two-day meeting. Through a series of games and activities, they were able to share views about the financial issues that most mattered to them. They also had the opportunity to offer their own financial policy recommendations directly to leading policymakers. Children, Youth & Finance: Action for Sustainable Outreach 19

20 1.1.3 Global Money Week Global Money Week is a worldwide money awareness week. Every year, during the second week of March, young people around the globe talk, play, create, sing, read, discuss and learn about saving, money, changing economic systems and building a financial future for youth. It is about joining together children, youth, parents, organizations and entire communities - to start action to reshape finance, and give young people the tools to shape their own future. Global Money Week is a series of activities organized nationally and coordinated globally by CYFI. The events raise awareness as to the importance of Economic Citizenship and actively engage children and youth on these issues. More than 3 million young people in 118 countries participated in 2014 Global Money Week events and activities. This was a significant increase from 2013, where 80 countries, 1 million children, and 403 organizations were involved in organizing Global Money Week events. Global Money Week was launched in 2012 with 21 countries and 33,000 children participating in the inaugural edition. For many of the participating countries, Global Money Week provides a platform for multisectorial national stakeholders to collaborate- many for the first time on developing financial education and inclusion initiatives and policies in their countries. Global Money Week Celebration Examples of activities that take place around the world during Global Money Week are described below: Ringing of the NASDAQ stock exchange Child and Youth Finance International was twice invited to ring the NASDAQ opening bell to celebrate Global Money Week in 2012 and Visits to banks Children and youth visited banks and other financial institutions to learn about how they work. Visits to the stock exchange Children and youth visited the stock exchange, with some of them ringing the opening bell to signal the beginning of trade! Workshops and lessons in schools and centers Children and youth enjoyed financial education lessons in schools and universities. Talking to Central Bank Governors Children shared their recommendations and opinions with the governors of their central banks. (Web) Chat with policy makers Children had the chance to discuss financial education and financial access with global policymakers. Global web chat Youngsters connected via web chats to share their experiences. Debates Debates on financial education, employment and enterprise took place in schools. Visit to money museums Money museums opened their doors to youngsters to teach them about money and its history. Publications Various publications to encourage children to learn about finance were made available in schools and libraries. Contests and competitions From poster-making contests to football competitions, children engaged in fun contests on topics of financial education and inclusion. Theatre youngsters expressed themselves through theatre and the arts on financial issues. Financial education games Team games took place for a fun way of learning about finance. Radio talk shows Radio was used as a medium to share about financial education and inclusion. Book bank Special book banks were set up to share publications on finance for children. 20 Children, Youth & Finance: Action for Sustainable Outreach

21 Folk Stories Telling stories has always been an effective means of teaching. It was no difference with teaching financial matters. Exhibitions Youngsters had the opportunity to display their artwork and projects in interactive exhibitions. Cartoons Cartoons and comic books were used to communicate key messages to children and youth. Youth budget to parliament Children and youth presented their recommendations and input into the youth budgets of their countries. Ensuring inclusion All children were in included in financial education activities no matter if they were street children, children in juvenile correctional centers or children from care homes. Learning from the market Children and youth carried out their own enterprises, with some presenting them to the central bank governor. Other innovations and fun activities from across the world included jigsaw puzzles of banknotes, money magicians, face painting, financial mimes and famous bands singing about the importance of saving. I have just realized that owning an account is not just for adults but for everyone who wants to have a secure future. I am going to open one so I can save all my coins for investment after school. School-aged youth during Global Money Week I couldn t believe that we were talking to children in a different country who were doing the same things we were doing here! Even though I didn t understand some of their words, I realized that they were learning about saving and money and that kind of stuff just like us here. I liked that we looked like we were on a TV show. 6th grade girl, referring to the videoconference with children from Peru Working with the G-20 CYFI worked closely with the Mexican G20 Presidency on emphasizing the importance of financial access for children and youth. Paragraph 53 of the G-20 leaders declaration states We recognize the need for women and youth to gain access to financial services and financial education. CYFI also played a facilitative role at the Y20 event in which children and youth expressed their desire for increased financial education and financial inclusion Children, Youth and Finance Children, Youth and Finance is the organization s annual flagship document. It compiles data gathered from within the Network to document the state of the Movement and provides an analysis of current trends and gaps which need be addressed. In its first edition in 2011, the document provided the baseline upon which the Movement s outreach and impact will be measured in future years. In this year s edition the data gathered shows that 36 million children and Children, Youth & Finance: Action for Sustainable Outreach 21

22 youth have been reached through partners and collaborators in the CYFI Network in 125 countries through financial services or Economic Citizenship Education Academic Documents In 2014 CYFI released its first quarterly Network Brief, aimed to provide the CYFI network with a review of research, evidence gaps and policy recommendations on a key or innovative topic in the field of economic citizenship of children and youth. CYFI published the academics-led review of literature examining the links between Economic Citizenship Education and financial inclusion and how these impact empowerment of children and youth and their financial capability. The encouraging results of the review outlined the areas of work where further academic review and research must be undertaken. Successively, CYFI and the Centre for Social Development (CSD) published two research briefs on the Conceptual Development of the CYFI Model of Children and Youth as Economic Citizens and on Research Evidence on the CYFI Model of Children and Youth as Economic Citizens, highlighting a clear mandate for moving forward the area of child and youth finance and recommending areas of future academic research Online Resource Sharing Platform CYFI s website was launched in 2012 and serves as a hub of information on activities, organizations and resources on financial topics for children and youth. The website currently houses over 600 resources ranging from academic papers, policy documents, discussion papers, and news articles. All of our partners are listed on the website, with details on the programs and services they offer which are designed to increase financial education and inclusion for children and youth. The website also features country pages. Displayed on each country page are CYFI s partnering organizations who are working in that specific country, as well as information on the country s policies on financial inclusion and education. Recognition for the Movement CYFI spread the messages of the Movement by ringing the NASDAQ opening bell for two consecutive years to mark Global Money Week. In 2013 the bell-ringing ceremony was celebrated in collaboration with UNCDF. In 2012, CYFI s Managing Director Jeroo Billimoria was awarded by the Union of Arab Banks for the achievements of the CYF Movement. Among the other awardees was Managing Director of the IMF Christine Lagarde. CYFI was listed in the Top 100 NGO list published by the Global Journal. It was also given the honor of most promising NGO. CYFI was a semi-finalist of the Mexico G20 Financial Inclusion Challenge: Innovative Solutions for Unlocking Access in the G20 competition. CYFI s proposal, Schoolbank, was among the top 12 of 257 entries from 62 countries. As a semi- finalist, CYFI was invited to attend the high-level delegation meeting organized by G20 to mark the conclusion of Mexico s Presidency of the G Children, Youth & Finance: Action for Sustainable Outreach

23 1.3.6 Regional Meetings From October to December, 2014, Regional Meetings were held at the request of participants of the CYFI Global Summits. The meetings served to bring together diverse stakeholders from within each region to exchange expertise, form collaborations and bring forward regional-specific child and youth finance issues. Meetings were held in 3 of the 5 regions in which the Movement works. In total, the Regional Meetings brought together 441 senior level participants from 75 countries. The Meetings took place in Macedonia, Guatemala, Addis Adiba and Malaysia. Youth representatives were present at the Europe and Central Asia meeting and shared their feedback directly with highlevel stakeholders from the region. Figure 3 Industry Representation at CYFI Regional Meetings Source:CYFI Europe & Central Asia The Third CYFI Regional Meeting for Europe and Central Asia, hosted and organized in collaboration with the National Bank of the Republic of Macedonia, was held on October 2-3 in Skopje, Macedonia. In parallel, a youth meeting gathered 61 youth representatives from across the region that met and created policy recommendations to be taken further by the meeting participants. The meeting gathered policy makers representing Central Banks, Ministries of Education, Ministries of Finance and Social Policy, civil society and private sector, but also 61 youth delegates from across the region. During the two day Regional Meeting, policy makers and youth representatives discussed on topics related to financial education, financial inclusion, youth unemployment and entrepreneurship Americas and the Caribbean The Third CYFI Regional Meeting for the Americas and the Caribbean was held in Guatemala City, Guatemala from October , within the framework of the IX Regional Conference on Remittances, Microfinance and Inclusion Financiera (COREMIF). This event was co-organized by the Banking Association of Guatemala (ABG), the Banking Children, Youth & Finance: Action for Sustainable Outreach 23

24 School of Guatemala (EBG), CYFI and Aflatoun International, becoming one of the largest in the central sub-region and one of the largest in Latin America in terms of remittances, microfinance, financial inclusion and financial education. This conference provided an unprecedented opportunity for the CYF Movement to strengthen its relations with Central American countries, and to respond to the unique needs of the countries in this part of the continent. It also opened dialogue between different sectors of Guatemalan society and regional governments. The meeting brought together about 150 participants from 13 countries in the region, Including government representatives, experts from public and private institutions, regulatory bodies in the financial system, representatives of academia and research institutes Asia and the Pacific On November 3-4, 2014 CYFI held its First Regional Focus Group Meeting and Workshop Series in the Asia-Pacific region at Kuala Lumpur, Malaysia, co-hosted by Allianz Malaysia Berhad. This is one of the first steps that CYFI is taking in reshaping its strategy for the region. Day 1 was attended by 16 delegates from 8 countries coming from central banks, government ministries, international organizations and multilateral bodies. On Day 2 CYFI held a joint meeting with Aflatoun bringing together the national authorities from Day 1 with (I)NGOs, foundations, and financial education resource centers to centrally discuss scaling at the national level child social and financial education. On Day 2, the meeting and workshop series had a total of 64 attendees from 15 countries in the Asia-Pacific. The Focus Group Meeting and Workshop Series provided the much needed clarity in identifying the key challenges at the regional and national levels. Moreover, the meeting has also enabled sharing of experiences, best practices, and expertise to formulate viable multi-sectorial action plans for each country represented in the meeting. Some of the key recommendations that came out of the meeting include: (1) an increased need for coordination among stakeholders at the national level; (2) the integration of financial education, financial inclusion, and consumer protection initiatives; (3) consultation of youth in designing appropriate products and corresponding regulations; and, (4) most importantly, the importance of starting young as financial behavior are values formed at a young age Africa The 3rd Annual CYFI Regional Meeting for Africa was held at the African Union Commission Headquarters in Addis Ababa, Ethiopia on December 4-5, The meeting brought together Africa s policy makers, educators, research and academic institutions, and financial service providers. One of the main outcomes of the meeting was to develop a common African position on the advancement of a unified financial education and inclusion plan of action for children and youth across the continent. During a variety of workshops and plenary sessions it was concluded that a great deal of innovation and action is needed to create an economically active and responsible youth population by addressing the various barriers to youth financial inclusion in Africa. At the close of the meeting a policy paper pledging for an integrated African Policy for Child and Youth Financial Inclusion to be part of the African Union s Agenda 2063 was announced. This policy paper details the recommendations needed for a global strategy to optimize use of Africa s resources for the benefit of all Africans for an integrated, prosperous and peaceful Africa. African leaders must develop and pursue national financial programs and strategies for children and youth with the objectives of ensuring that every child and youth in Africa has access to safe financial services, quality Economic Citizenship Education, and the opportunity to attain a sustainable livelihood. Providing young people with financial services, which include an educational component, enhances a young person s ability to make their own economic decisions and escape the cycle of poverty. Such access to appropriate financial services allows young people in increase their awareness of their social and economic rights and their ability to build assets and invest in their own future. 24 Children, Youth & Finance: Action for Sustainable Outreach

25 1.3.7 Country Change Figure 4 CYFI Country Roadmap Figure 5 Tier 1 and 2 Countries by Region Source: CYFI CYFI assists national authorities in setting up Child and Youth Finance regional and national platforms. The objective of these platforms is to create national strategies and action plans for realizing Economic Citizenship for children and youth, as well as to facilitate efforts of various stakeholders towards achieving this goal. To best accommodate the Movement and to tailor strategies to various needs of national stakeholders, CYFI classified the countries in the Movement by 3 tiers: Tier 1, Tier 2 and Tier 3. Tier 1 countries are countries where a national platform has been set up to include key players in the country, usually the financial regulatory authority, Ministry of Education, and Bankers Association. Tier 2 countries are countries that are in the process of forming a national platform. Tier 3 refers to countries where CYFI is working closely with individual organizations such as NGOs and banks. During 2014 CYFI has many highlights to share in terms of examples of the strategic process for national and regional platforms. For the sake of brevity, we wish to highlight one example per region in the highlight section below. A full overview of our partners and the countries with whom CYFI is actively involved with may be found on our website Chile: Prior to working with CYFI, representatives from various stakeholder groups in Chile were conducting separate efforts to address the different areas of financial education and financial inclusion for children and youth. During the CYFI Regional Meeting for the Americas the different stakeholders saw the opportunity to combine their efforts. They successfully carried out a joint Global Money Week event and created a national working group. The purpose of this working group is to create national and coordinated efforts for financial inclusion and access for children and youth in Chile. Children, Youth & Finance: Action for Sustainable Outreach 25

26 India: The Reserve Bank of India (RBI) attended the CYFI Annual Summit in 2012 and 2013, which have helped build up the case and the urgency to create an environment that is socially- and financially-inclusive for young people in India. Building on this, the RBI has made a decision to lower the minimum age for a minor to independently open a savings account to 10 years old marking a progressive way to empower them as economic citizens. Accordingly, CYFI is now working with the Indian Banks Association (IBA) in designing a pilot for a SchoolBank in India to be launched in early 2015, thus providing a more conducive channel for Indian youngsters to be engaged in the financial system. These steps show CYFI s big strides in engaging a multi-sectoral approach to advancing social and financial inclusion of young people Latvia: After meeting at CYFI s Regional Meeting for Europe and Central Asia in 2012, representatives from the Central Bank of Latvia and the Financial and Capital Markets Commission began collaborating on the formation of a working group for financial education. On February 24th 2014, after many negotiations, the strategic partners signed a memorandum on the implementation of the National Strategy for Financial Literacy in Latvia during The strategy is aimed at promoting a progressive rise in the public financial literacy. This year, 7 multi-sectoral organization have joined the original collaborating team in increasing national literacy, namely, the Financial and Capital Market Commission (FCMC), Ministry of Education and Science, National Centre for Education, BA School of Business and Finance, Consumer Rights Protection Centre, Association of Commercial Banks of Latvia and Latvian Insurers Association. CYFI is officially recognized as one of the main contributors to this plan in the national strategy. Financial education is also a priority in Latvia: they are actively improving their children and youth s financial education rates during their national Financial Education Week which is timed to correspond with Global Money Week Morocco: Bank Al-Maghrib and the Moroccan Foundation for Financial Education are collaborating with CYFI to prioritize the topic of youth financial capabilities in the financial and educational sectors. Bank Al-Maghrib led a series of successful national initiatives to set up the Foundation for Financial Education. This body, with the participation of 13 local ministries and local bodies, is leading the drafting of the national strategy for financial education for the entire population - with youth as the main focus. Global Money Week has been celebrated annually in Morocco since Each year, the celebrations have involved an increasing number of stakeholders from the public and private sector. In 2012, Morocco won the CYFI Global Money Week Country Award Uganda: More than 50% of Uganda s population is under the age of 15. The National Curriculum Development Centre (NCDC) and the Private Education Development Network (PEDN) have been CYFI partners since The Capital Markets Authority (CMA) became partners in Inspired by persistent advocacy on the need for financial education for children and youth, the NCDC initiated reforms in 2011 to incorporate financial literacy into the national education curricula. In 2013, NCDC, CMA and PEDN led the formation and implementation of a Ugandan Strategy for Financial Literacy launched in Financial literacy is currently taught in secondary school through subjects such as commerce and entrepreneurship. NCDC, PEDN, and CMA sponsor the teaching of financial literacy in primary and secondary schools through the development and dissemination of educational materials and teacher training programs. NCDC, PEDN and CMA celebrate Global Money Week as an integral annual activity Youth Engagement As a Movement dedicated to children and youth, CYFI ensures that youth are offered a platform through which they can offer their inputs on the strategic direction and priorities of the Movement. The participation of children and youth is ensured through their active participation at the Global Youth Meetings, the Global Summits, as well as through the CYFI Youth Committee. The CYFI Youth Committee is a group of socially conscious youth who are passionate about changing the way their generation s financial capability is handled. 26 Children, Youth & Finance: Action for Sustainable Outreach

27 What some of us don t notice is that some parents aren t even trying to teach us about money. I think 8 is the right age for a child to have money. If a bank teaches a child to save that will grow our economy. Child aged 16, participant at the CYFI Global Summit. Through social media platforms, they are also invited to share their opinions and thoughts, through direct interaction, polls and surveys. In 2012, children and youth offered feedback to the Basel Committee s Core Principles on Banking Supervision through the online consultation process. This involved youth from 12 countries. In 2014, 4000 youth participated in CYFI s global youth survey and 6500 young people were involved in the online DreamsBank campaign Economic Citizenship Education As a result of working group input, Economic Citizenship Education is defined by the CYF Movement as an education which combines: social education financial education and livelihoods education The term Economic Citizenship emerged as a suggestion from members of the United Nations Committee on the Rights of the Child. This concept evolved with the active participation of over 50 NGOs and Education Service Providers. Members of the CYFI Education Working Group, chaired by UNICEF and OECD, pooled their knowledge and shared their expertise to create the concept of Economic Citizenship Education. They have also created the Economic Citizenship Learning Framework which details key learning outcomes that should be seen in various life stages of children and youth. This framework is used to Guide governments, NGOs, schools and other service providers who wish to create curricula and programs of social, financial and livelihoods education. Allow for organizations who have existing programs to map their learning outcomes against those which are set out by the framework. With these efforts, the Movement is ensuring a coordinated collaboration and a unified approach to Economic Citizenship Education globally Publications In collaboration with partners within its network, CYFI has created a series of publications that help inform and guide the different efforts within the Movement National Implementation Plan A National Implementation Plan for Economic Citizenship for children and youth helps national stakeholders design the implementation of a joint strategy to increase Economic Citizenship for children and youth at the national level. The value of the Plan lies in its emphasis on initiative actualization at the national level, creating a multiplier which extends the scope of its benefits. Through a 6-step approach objectives are set, concrete building blocks are chosen and a detailed implementation plan is developed to address country-specific needs and circumstances for children and youth Economic Citizenship in Your Country This manual acts as a guiding toolkit for national authorities, governmental bodies, Ministries of Finance, Ministries of Education, Central Banks, NGOs or concerned citizens to engage and collaborate with other stakeholders in the effort to ensure that every child and youth becomes an empowered economic citizen. The document offers inspiring stories Children, Youth & Finance: Action for Sustainable Outreach 27

28 and examples from CYFI Partners and Network Participants from around the world about how they came together to create regional and national platforms that raise awareness and change policy and regulations to ensure no child is left behind A Guide to Economic Citizenship Education This guidebook features the Economic Citizenship Education Framework to guide the creation and assessment of education programs and curricula which are designed to increase the social, financial and livelihoods skills of youngsters. This Guidebook was created for governments, NGOs, schools and other service providers to create curricula and programs of social, financial and livelihoods education Child and Youth Friendly Banking Discussion Paper UNICEF and CYFI co-produced a discussion paper titled Beyond the Promotional Piggybank: Towards Children as Stakeholders. The paper outlines some of the key challenges, opportunities and risks that major retail financial institutions in OECD countries can encounter when dealing with the segments of children and youth. The paper uses case studies to highlight the various facets of how a Child Rights Integration in Retail Banking could look like The Child and Youth Friendly Banking Product Certificate The Child and Youth Finance Movement advocates for increased access to appropriate financial products for children and youth. This Certification Guide describes how to obtain a Certificate and is a guide for the individual(s) within the financial institutions who are involved in the creation and dissemination of products. This manual was developed with the assistance of Deloitte, Houthoff Buruma and KPMG. The guide provides an introduction to the Certificate and its potential benefits, outlines the Certificate Criteria and Control Framework, outlines the certification process and provides more details on the use of the Certificate Product Development Guide "Banking a New Generation: Developing Responsible Retail Banking Products for Children and Youth" is a product development guide which has been developed in collaboration with MasterCard for leading national and international financial institutions with an ability to drive significant outreach to children and youth. The Guide is intended to help decision makers, product owners and all stakeholders in the product development process understand the impact of working with children and youth, and to provide guidelines on how to develop appropriate innovative banking and payment products, while respecting and supporting children s rights. The Guide has been developed in three parts: The first part focuses on advocacy, outlining the importance of investing in children and youth. Information that is important to understand and bear in mind when interacting with this segment. The second part provides guidance on children and youth focused product development. It will help product development professionals understand young consumers needs and wants. The third part presents several banking products and related programs that are offered by financial institutions across the globe Technology Through technology, CYFI is examining how existing, new and innovative technology can be used to disseminate Economic Citizenship Education and facilitate financial access for children and youth. One such initiative is CYFI s SchoolBank project. The project aims to provide safe, low cost and structured ways of saving for children and youth. It advocates applying mobile banking technology or branchless banking technology in creating access to formal channels of saving and using schools (or community centers, non-formal education organizations, etc.) in facilitating the provision of financial access and financial education Child and Youth Friendly Banking Products CYFI brought together representatives from financial regulatory authorities and financial institutions to create the criteria for Child and Youth Friendly banking products. From these criteria, a product prototype can be created, which can be further modified by interested financial institutions. To date, numerous financial institutions have used these product criteria to create financial products for youth, mostly savings accounts. The criteria are also used to assess the levels to which financial products are child and youth friendly. Those products which meet the criteria are provided a Child and Youth Friendly Banking Product Certification. 28 Children, Youth & Finance: Action for Sustainable Outreach

29 Additionally, via the Schoolbank project, CYFI is working with telecommunication agencies and mobile operators to explore the creation of web-based products that will allow the Movement to reach out to even the most marginalized child. The CYFI Secretariat Facilitating the growth of the Movement by coordinating this global Movement is the work of a dedicated Secretariat, based in Amsterdam. The Secretariat is responsible for promoting and furthering the CYFI Movement by involving an increasing number of partners and contributors to the Network. It provides technical assistance for organizations wishing to implement or develop financial programs and services in their countries. The CYFI Secretariat does so by leveraging the expertise from within its network. Other duties of the Secretariat include certification of Child and Youth Friendly banking products, as well as Economic Citizenship Education assessment. Maintaining an innovative spirit, diversity and a broad range of capabilities is essential to ensure we reach our target of 100 million children and youth. The Secretariat is made up of a young team, led by leading social entrepreneur Jeroo Billimoria. Let me start by congratulating the Child and Youth Movement with its achievements so far. In a short amount of time, the Movement has grown significantly. Herman Van Rompuy, President of the European Council. Children, Youth & Finance: Action for Sustainable Outreach 29

30 4 Children, Youth and Finance: From Momentum to Action

31 Chapter 2 Terms and Definitions Children, Youth and Finance: From Momentum to Action 5

32 Chapter 2 Terms and Definitions 2.1 Key Terms: CYFI s Model of Economic Citizenship In June 2010, 126 leading thinkers from 40 countries gathered in the Netherlands for the first Child and Youth Finance meeting to share their insights and expertise in developing the Theory of Change for the Child and Youth Finance Movement. Over the course of the following year, dedicated working groups were formed for each of the key strategic areas of the Movement. The CYFI Research Working Group, comprised of leading academics in the fields of financial literacy and children s rights, combined their expertise to develop CYFI s Theory of Change in the form of a detailed model of economic citizenship. Figure 7 Model of Children and Youth as Economic Citizens ECONOMIC CITIZENSHIP - Reduced income & asset poverty - Economic & social engagement - Sustainable livelihoods - Economic & social well being - Rights for & responsibilities to self, family, and others Empowerment Economic Citizenship Financial Capability Financial Education Life Skills Education Financial Inclusion SURROUNDING ECOSYSTEM Source: Child and Youth Finance International, 2011 The model poses that financial education, social education, livelihoods education and financial inclusion are the building blocks of empowerment and financial capability which in turn underpin economic citizenship for children and youth. The different concepts that are used in this model will here be defined. First, CYFI defines a child as an individual under the age of 18, or under the age of majority as prescribed by national law, as defined by United Nations Convention on the Rights of the Child; 2 Youth as those persons between the ages of 15 and 24 as defined by the United Nations; 3 and Young people as anyone between the ages of 10 and 24, as defined by the United Nations Children's Emergency Fund, the World Health Organization and the United Nations Population Fund. 4 2 Office of the High Commissioner for Human Rights (September 2, 1990). The Convention on the Rights of the Child 3 United Nations (1981). Secretary-General s Report to the General Assembly, A/36/215, Children, Youth & Finance: Action for Sustainable Outreach

33 Financial education includes instruction and/or materials designed to increase financial knowledge and skills. Social education is the provision of knowledge and skills that improve individuals understanding and awareness of their rights and the rights of others. It also involves fostering of life skills. Livelihoods education builds one s ability to secure a sustainable livelihood through skills assessment and a balance between developing entrepreneurial and employability skills. Financial inclusion is access to appropriate, quality, and affordable financial services. Empowerment is the sense of confidence and efficacy experienced by children and youth through controlling their own lives, claiming their rights, and having empathy toward others. Financial capability has both individual and structural components. It combines a person s ability to act with the opportunity to act. To be financially capable, people must have financial knowledge and skills as well as access to appropriate financial services to enhance social and economic well-being. While empowerment is portrayed as a separate construct in the CYFI model of economic citizenship, financial capability actually incorporates empowerment at the individual level and access and opportunity at the structural level. Essentially, financial capability occurs when young people are personally empowered and simultaneously experience financial inclusion, or real access to appropriate financial products and services along with the opportunity to practice using those services. 5 Figure 7 lays out these pillars and its effects in more detail. Annex B also provides a glossary further explaining these terms. At the center of the Theory of Change lie children and youth themselves, the ultimate beneficiaries. When developing the CYFI Theory of Change, the Research Working Group used the UN Convention on the Rights of the Child as a basis. The Convention outlines a child s right: To survival, To develop to the fullest, To protection from harmful influences, abuse and exploitation, and To participate fully in family, cultural and social life. 6 States parties to the Convention recognize that poverty and unemployment severely restrict, if not completely deny, children and youth these fundamental rights. In order to reach the goal of economic citizenship, the group concluded that a concentrated effort of intertwined development interventions is necessary. The CYFI Model states that holistic financial, social and livelihoods education when done in concert with financial inclusion can lead to greater capability and empowerment, thus helping children and youth to thrive as economic citizens. 2.2 Key Terms: Assessing Global and National Efforts National Strategy for Financial Inclusion: Financial inclusion strategies can be defined as road maps or action plans, agreed upon and defined at the national or sub-national level. Ideally, they are prepared by the public sector in partnership with the private sector and/or civil society so as to encourage broad innovation and development in line with financial inclusion targets. 7 National Strategy or Policy Encouraging Access for Those Under the Age of 18 This refers to a specific focus being given at the national level to increase access to formal financial services for those under the age of 18. In this regard, the child and youth segment is specifically mentioned as a target group in their strategy or in a related policy. 4 UNDPA (1999). Chapter Eight Reproductive Health of Young People. Defining Children and Young People. Available on: 5 See 2, Sherraden and Ansong (2013). p Office of the High Commissioner fro Human Rights (September 2, 1990). The Convention on the Rights of the Child. 7 Worldbank (2014). Financial and Private Sector Development. Financial Inclusion and Infrastructure. National Strategies on Financial Inclusion ~theSitePK:282885,00.html Children, Youth & Finance: Action for Sustainable Outreach 33

34 Please Note: national regulation may not yet support this strategy. The strategy requires a willingness of the national authority to target children and youth as a segment that requires access to financial services designed to meet their specific social and economic needs. National Strategy or Program of Financial Education: According to the OECD/INFE, a national strategy for financial education/financial literacy is a nationally coordinated approach to financial education that consists of an adapted framework or program, which, at the least: Recognizes the importance of financial education/financial literacy; Involves the co- operation of different stakeholders as well as the identification of a national leader or coordinating body/council; Establishes a roadmap to achieve specific and predetermined objectives within a set period of time; and Provides guidance to be applied by individual programs in order to efficiently and appropriately contribute to the national strategy. 8 Child Focus in National Strategy This refers to a specific focus on increasing access to financial education or increasing financial literacy for those under the age of 18. Please note: the name or source of national strategies may vary, as in some countries financial education falls under a consumer protection or economic empowerment policy. Presence of Education Components in National Strategy CYFI reports that a strategy has a financial component when the strategy mentions the relevance of increasing financial literacy or financial education among its population as competencies to be covered or competencies to be acquired. CYFI reports that a financial education strategy has a social component when the knowledge of rights and responsibilities, social awareness and/or life skills are explicitly mentioned in the strategy as competencies to be covered or competencies to be acquired. CYFI reports that a financial education strategy has a livelihoods component when entrepreneurship and/or employment skills are explicitly mentioned in the strategy as competencies to be covered or competencies to be acquired. Please Note: it is possible that there is a national strategy drafted with one or several of the three educational components mentioned above but without the corresponding changes in the national curriculum framework yet in place. For the purpose of this document, CYFI will separate the willingness of the national authorities to create the strategy with the actual integration of the relevant educational components, and the implementation of specific programs, throughout the country. Curriculum Integration CYFI reports the integration of financial, social or livelihoods education into the curriculum when: A rapid curriculum assessment has been done and 70% of the core components of financial, social or livelihoods education are included in the curriculum, or There is a written verification from the education authority that says that several core financial, social or livelihoods education components have been integrated into the curriculum. 8 OECD (2012). OECD/INFE HIGH-LEVEL PRINCIPLES ON NATIONAL STRATEGIES FOR FINANCIAL EDUCATION. 34 Children, Youth & Finance: Action for Sustainable Outreach

35 Children, Youth & Finance: Action for Sustainable Outreach 35

36 6 Children, Youth and Finance: From Momentum to Action

37 Chapter 3 Compiling Children, Youth and Finance Children, Youth and Finance: From Momentum to Action 7

38 Chapter 3 Compiling Children, Youth and Finance 3.1 Introduction Children, Youth and Finance is the annual compilation of data from partners and collaborating organizations in the CYFI network, along with additional stakeholders around the world, documenting the global progress of financial inclusion, education and entrepreneurship for children and youth. By assessing the collective efforts of financial service providers, government authorities, civil society organizations, multilateral institutions and academics, the report uncovers the barriers to, and opportunities for, early financial access and education for young people throughout the world. This third edition of Children, Youth and Finance focuses on the progress of national strategies aimed to increase the economic citizenship of young people, as well as on progress made by partners and collaborating organizations within the CYFI network. It will elaborate on the evidence for the Child and Youth Finance International Model of Economic Citizenship, highlighting a clear mandate for moving the issue forward worldwide while recommending areas for future academic research. 9 This publication will additionally provide empirical data and case studies on the youth financial products that financial institutions in the CYFI network are offering, the content of youth programs that are implemented and on the variation in economic citizenship education programs that education providers in the CYFI network are currently working with. A particular focus in this edition will be the progress of economic citizenship strategies at the national level and the subsequent implementation of such strategies. The document examines how these strategies link to the regulatory landscape on finance and consumer protection and how they relate specifically to children and youth. This document offers a unique compilation of this data and provides an opportunity to influence the agendas of government institutions, NGO s and financial institutions and how they address the financial and social rights of children and youth around the world. 3.2 Compilation With CYFI s Theory of Change serving as a starting point, surveys were created in 2012 through a consultative and participatory process with hundreds of partners and stakeholders in the CYFI network. These initial iterations were then extensively reviewed, modified and rewritten by the CYFI Education and Research Working Groups to ensure relevant data was collected and indicators measured. This data allows CYFI to gauge the growth of the Child and Youth Finance Movement over time. Children, Youth & Finance is based upon data gathered from partners and collaborating organizations in the CYFI network, as well as through secondary sources from stakeholders in the wider field of financial inclusion and education. 9 Sherraden, M. and Ansong, D. (2013). Research Evidence on on the CYFI Model Of Children And Youth As Economic Citizens CSD Research Review No Children, Youth & Finance: Action for Sustainable Outreach

39 3.3 Methodology Primary Sources Education Survey The CYFI Survey on Economic Citizenship Education (ECE) for Children and Youth collects data about educational products for young people which focus on the different components of ECE. The questions followed the rationale of the CYFI Education Learning Framework on ECE. This survey was used to collect information for case studies in chapter 5.2 and chapter 7 on financial education programs. Case studies, compiled from partner NGOs, offer further insight into how financial education and inclusion shape economic citizens. Our partners include organizations such as Aflatoun, Aga Khan Foundation, Camfed, ChildFund International, Freedom from Hunger, Mercy Corps and the International Youth Foundation. Where information was lacking, CYFI staff conducted extensive interviews with partner organizations, in order to gain an overview of program features and outreach numbers. We received responses from 28 organizations in the network. Banking Survey and Research The CYFI Survey on Banking Products for Children and Youth collects data on banking accounts which are currently offered to young people and explores their features as they relate to the Child and Youth Friendly Banking Product criteria. This survey was used for case studies in chapter 5.3 and for chapter 7. The indicators related to financial institutions measure their level of involvement with young clients and the degree to which their financial products adhere to these criteria. The indicators related to financial education capture any education component that may be related to the product. We received responses from 18 financial service providers in the network. Where information was lacking, CYFI staff conducted additional interviews with financial service providers, in order to gain an overview of product features and outreach numbers. Country Survey The Country Survey on Economic Citizenship Education and Financial Inclusion of Children and Youth collects data on national level efforts and activities relating to child and youth financial issues, and was used for chapter 5 which highlights national strategies. This survey was distributed to national authorities such as central banks and ministries of education. We received responses from 40 organizations in the network. Where information was lacking, CYFI staff conducted extensive interviews with national and regional authorities in order to gain an overview of policies and regulations as well as of outreach numbers. In addition, the analysis of national strategies is based on interviews with national authorities, strategy documents and secondary sources such as the OECD s analysis on the implementation of financial education strategies. Chapter 5 supplements what the OECD has done by 1) expanding the analysis to the financial inclusion of youth in national strategies, 2) investigating the way the youth segment is highlighted in financial education strategies and 3) analyzing the different educational components that may be added to financial education in the form of social (life skills) and livelihoods education Secondary Sources The secondary data in Children, Youth & Finance was obtained from reports published by international organizations such as UNICEF, UNCDF, ILO and the World Bank Group. The organizations databases provide regional and country level indicators, such as gross national income per capita (in USD), percentage of the population that are unemployed and percentage of the population with formal bank accounts. In addition, CYFI has assessed banking products on their child and youth friendliness through desk research assessing the product specifications as provided by banks websites and service desks. The CYFI Research Working Group and the Centre for Social Development (CSD) collaborated on reports that were written in 2013 on the Conceptual Development of the CYFI Model of Children and Youth as Economic Citizens 10 and on Research Evidence on the CYFI Model of Children and Youth as Economic Citizens. These reports further emphasized a clear research mandate for the Movement, recommending several priority areas for research in the field of child and 10 Sherraden, M. S., & Ansong, D. (2013). Conceptual development of the CYFI Model of Children and Youth as Economic Citizens (CSD Research Report 13-03). St. Louis, MO: Washington University, Center for Social Development. Children, Youth & Finance: Action for Sustainable Outreach 39

40 youth finance. 11 Based on these gaps, CYFI conducted a thorough literature review on the availability of studies on the pillars of economic citizenship, which are summarized in chapter 4. The literature that was collected on the impact of financial education was based on, among other reports, a meta-analysis conducted by Aflatoun in Limitations The data collection methodology for Children, Youth and Finance can still be considered a learning process for CYFI. As a network organization, CYFI collects data sets which have, for the most part, not been tracked by organizations thus far. CYFI has committed itself to laying this foundation for the Movement, allowing the entire CYFI network to reflect on what is working well and where there are opportunities for further improvement and collaboration. The surveys compile data from various sources, and present indicators demonstrate limited internal validity; they fall short in measuring the shortterm and long-term impact of financial products and financial, social, and livelihoods education on children and youth. The lack of sharp impact measurements corresponds to two shortages: the number of programs that provide both financial inclusion and holistic ECE programming, and the number of such programs that conduct monitoring and evaluation. In addition, some institutions are not keen to share their data due to confidentiality considerations. Further metrics and records of children and youth s financial activities and education must be developed to accurately assess the progress of policies and programs in the field. The secondary data used to measure the reach of financial education programs created by governments and other national data on savings is limited because a large portion of these analyses do not focus specifically on children and youth. This was the motivation for CYFI to generate surveys for government agencies and financial authorities. The number of government initiated financial education programs, the content of the educational components, the outreach to children and youth, and the impact of the initiatives can only be accurately measured by the direct responses from educational authorities and youth-serving organizations around the world. Even though CYFI used a revised version of these surveys in the compilation of the document, it is still a work in progress and will be revised again in the following years with consultation with members of the CYFI Working Groups. 11 Sherraden, M. S., & Ansong, D. (2013). Research Evidence on the CYFI Model of Children and Youth as Economic Citizens (CSD Research Report 13-04). St. Louis, MO: Washington University, Center for Social Development. 12 Aflatoun (2014). Working Paper Financial Education for Children and Youth: A Systematic Review and Meta-analysis. Available on: 40 Children, Youth & Finance: Action for Sustainable Outreach

41 Children, Youth & Finance: Action for Sustainable Outreach 41

42 8 Children, Youth and Finance: From Momentum to Action

43 Chapter 4 Building the Case for Economic Citizenship Children, Youth and Finance: From Momentum to Action 9

44 Chapter 4 Building the Case for Economic Citizenship This chapter aims to build a case for economic citizenship by summarizing the most recent evidence on the concepts of financial inclusion, financial capability, financial, social and livelihoods education. The literature of 4.1 builds on last year s publication and dates from mid-2013 to end The literature used for 4.2 ranges from Children and Financial Capability Introduction CYFI s Model of Economic Citizenship poses that financial capability has individual and structural components. It combines a person s ability to act with the opportunity to act. To be financially capable, people must have financial knowledge and skills as well as access to appropriate financial services to enhance social and economic well-being. On the one hand, research points out that children and youth are more likely than adults to be financially excluded. 13 This resonates with a common discomfort among policymakers and communities on linking children and money, or more specifically, linking children and formal financial services. Another common assumption is that children do not handle money. However, research increasingly shows that young people do handle money and also, in fact, save. A four country case study conducted by the YouthSave Consortium indicates that the majority of young people handle money on a regular basis. 14 Research conducted by SEEP in 2013 showed that youth indeed have a variety of saving sources, such as allowance or part-time work, and they apply various conventional savings strategies, such as investment. 15 On the other hand, PISA results show that financial literacy levels of young people are low, lower than those of adults across the board, and strikingly varied across countries. For example, of the 13 participating OECD countries and economies, only one in ten students made the highest financial literacy proficiency level in PISA The proportion of people with no high scores in financial knowledge, attitudes and behavior is also higher among youth than adult respondents. 17 Access to youth savings accounts and to financial education are tools with the potential to encourage both financial capability, and eventually, economic citizenship. In this subchapter, we undertake an assessment of the rapidly growing body of research on programs that aim to increase financial literacy/financial education, financial inclusion, financial capability, and their potential impacts for young people. Financial Education Financial literacy has been named a form of investment in human capital that includes knowledge and skills, understanding of financial instruments and the ability to apply all of this knowledge effectively. In adult populations, 13 Based on Findex results for the segment. Available on: 14 YouthSave (2013). What do Youth Savers want? Results from Market Research in Four Countries. Save the Children and the MasterCard Foundation. 15 SEEP (2013). Understanding Youth and their Financial Needs Youth and Financial Services Working Group. Available on: 16 OECD (2014). Do 15-year-olds know how to manage money? PISA in Focus 41. Available on: 17 OECD & Russia Trust Fund (2013). Financial Literacy and Inclusion: Results Of OECD/INFE Survey Across Countries And By Gender. Retrieved from: by_country_and_gender.pdf 44 Children, Youth & Finance: Action for Sustainable Outreach

45 financial literacy has been linked to many positive financial outcomes as well as positive economic behaviors. 18 Lack of financial knowledge is additionally correlated with negative financial outcomes: less saving, lower wealth, and lower participation in stock markets. 19 Several initiatives worldwide have thus been initiated to offer financial education. Although the evidence is not conclusive, previous results indicate that financial education can improve financial literacy. 20 Below, a short review is given on the most recent results within this growing body of research focused on financial education efforts targeted at youth. First, an impact was found for several short financial education courses that were targeting specific segments of people and were linked to work or study. Lopez (2014), using a randomized controlled trial, finds that an hour-long financial education workshop on the main financial aspects of college increases students GPA by 0.2 points and their ability to receive financial aid from a non-profit organization by 11.4 percentage points. 21 These findings may suggest that financial education that focuses on financial aspects of higher education could improve students academic achievement as well as their ability to find finance for education. A study conducted by Prawitz and Cohart (2014) looked at changes in financial behaviors following employee-needsdriven workplace financial education in the US. Results showed that participants were 1.8 times more likely to budget, 1.9 times more likely to undergo assessment of asset allocation, and 1.6 times more likely to increase retirement contributions than non-participants. Researchers suggest that the results lend support to basic financial education and retirement planning programming in the workplace. 22 Even though this study was focused on an older age segment, results targeted at youth in the workplace may render similar results. Rodriguez, Sanchez and Zamora (2014) looked at the impact of Viva Seguro, a financial education program that is broadcasted through the radio in Colombia and covers topics on risks and insurance management, knowledge, attitudes and behavior. Using panel data information on a treatment and a control group existing of program listeners and nonlisteners, the researchers found a positive impact on the knowledge component. No effect, however, was found on knowledge of specific concepts of insurance, or participants attitudes towards it in savings behavior, or the number of insurance policies purchased. Researchers thus conclude that delivering financial education through radio, in this case, may be a cost effective alternative to transfer knowledge on concepts of insurance. 23 A study conducted by the Federal Reserve Bank of New York on debt behavior, looked at the effects of exposure to financial training on debt outcomes in early adulthood. Their analysis, with the use of a flexible event-study approach, reveals significant effects of financial education on debt-related outcomes of youth, including the propensity of youth having a credit report, reduced the incidence of adverse outcomes such as accounts in collections and delinquent accounts and reduced both the likelihood of youth carrying debt and their average debt balances. The net effect of both math and financial literacy education is an increase in youths average creditworthiness, as measured by the Equifax risk score. The researchers conclude that financial education programs are likely to have significant impacts on the financial decision-making of youth, even though they indicate that effects depend upon the content of these programs. 24 Several recent studies have found positive results for formal financial education or a compulsory classroom course on financial education. In the Bank of Italy and the Italian Ministry of Education started an experimental program to incorporate financial education into school curricula. Researchers found positive effects of classroom teaching on pupils financial knowledge. Financial knowledge scores were significantly higher after the lessons than before. Some classes repeated the tests a number of times, making it possible to gauge the retention of knowledge. The results showed that the notions acquired were retained, at least partially, over time. The researchers conclude that classroom instruction is an effective channel for spreading financial knowledge among students. They also suggested that pupils, 18 Lusardi, A. & Mitchell, O.S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. 19 Luhrmann, M, Serra-Garcia, M, & Winter, J. (2013). Teaching teenagers in finance: does it work? Munich Discussion Paper No For a review on previous evidence on financial education, see Sherraden & Ansong (2013) Research Evidence on the CYFI Model of Children and Youth as Economic Citizens. 21 Lopez, F (2014). Financial Literacy and Investments in Higher Education. Retrieved from: 22 Prawitz, A.D. & Cohart, J. (2014) Workplace Financial Education Facilitates Improvement in Personal Financial Behaviors. Journal of Financial Counseling and Planning, Rodriguez, C, Sanchez, F. & Zamora, S. (2014). On the Radio: Effectiveness of the Viva Seguro Financial Education Program. Documento CEDE No Brown, M., Klaauw, ven der, W., Wen, J, & Zafar, B. (2013). Financial Education and the Debt Behavior of the Young. FRB of New York Staff Report No Children, Youth & Finance: Action for Sustainable Outreach 45

46 especially the youngest ones, need to be confronted with interactive and visual approaches that could facilitate learning. 25 An observation on interest in voluntary financial education programs comes from Mexico, where a randomized experiment around a large financial literacy course looked into understanding reasons for low take-up of financial education, and also measured the impact of financial education. Attending training resulted in a 9 percentage point increase in financial knowledge and a 9 percentage point increase in saving outcomes, while no impact was found on borrowing behavior. Administrative data did indicate that the savings impact was relatively short-lived. Experiments to increase take-up suggested that this low participation rate was not mainly associated with things such as timeinconsistency, or lack of information, but rather appeared to be associated with individuals thinking that the benefits of such training were not high enough. 26 The researchers conclude that people are making optimal choices not to attend financial education courses, and point to the limits of using general purpose courses to improve financial behavior for a general population. 27 Luhrmann, Sera-Garcia and Winter (2013) examined the impact of a short financial education program on teenagers aged in German high schools. They found that the training program significantly increased teenagers' interest in financial matters and their financial knowledge, especially their ability to properly assess the riskiness of assets. Similarly, they found positive effects in behavior, observing a decrease in the incidence of self-reported impulse purchases. The data additionally reveals strong gender differences: girls showed less interest in, and self-assessed knowledge of financial matters and were less likely to save. 28 However, the researchers found no evidence of a significant increase in savings, which was attributed to the short time span covered by the quasi-experiment (no more than three weeks between the training and the follow-up) and makes it unlikely that strong behavioral changes in savings could be observed. It is thus concluded that even a relatively short financial education program has the potential to help teenagers become more informed and sovereign consumers. By far the largest study that indicates benefits of financial education for financial behavior has been conducted by Bruhn, Zia, Legovini and Marchelli in Brazil. The researchers collaborated with major financial and educational actors to conduct a randomized evaluation of a comprehensive financial education program for high school students. The study spans 868 schools, and approximately 20,000 students aged 15 to 17. Results show an increase in student financial knowledge, which leads to a 1.4 percentage point increase in savings a large and economically substantial effect. Moreover, a complementary workshop for parents led to their children saving more. Both current attitudes and new forward-looking indices of intentions to save and financial autonomy improved significantly. Trickle up impacts on parents were also found to be significant with improvements in parent financial knowledge and savings and spending behavior. 29 The researchers conclude that the results demonstrate the value of a high-quality financial education program targeted at youth, as it can improve financial knowledge, attitudes, and behavior. The researchers associate the success to two factors: the quality and intensity of the program, and to the quality, scope and scale of the study. Bruhn et al. (2013) additionally indicate the impact a study such as this can have on policy. Other countries in the region have expressed interest in the Brazilian experience to learn and adapt the program to their respective environments and school systems. 30 The results demonstrate the value of a high-quality financial education program targeted at youth, as it can improve financial knowledge, attitudes, and behavior. A critical note on the content of financial education is given by Arnold Webtzel, based on the case of South Africa. Under the common assumption that the poor stay poor because of inadequate financial management and therefore need better financial literacy as provided by conventional financial education programs, programs usually focus on topics 25 Trifilidis, M. (2013). Does Financial Education at School Work? Evidence from Italy Angela Romagnoli Bank of Italy. Bank of Italy Occasional Paper No Bruhn, M., Ibarra, G.L. and Mc Kenzie, D. (2013). Why is Voluntary Financial Education so Unpopular? Experimental Evidence from Mexico. World Bank Policy Research Working Paper No. 6439, p Ibid 28 Luhrmann, M., Serra-Garcia, M. and Winter, J. (2013). Teaching teenagers in finance: does it work? Munich Discussion Paper No Bruhn M., Zia, B. Legovini, A. and Marchelli, R. (2013). Financial Literacy for High School Students and Their Parents: Evidence from Brazil. 30 Ibid, p Children, Youth & Finance: Action for Sustainable Outreach

47 such as financial knowledge (e.g. compound interest), budgeting, choosing appropriate financial instruments, saving, investing and financial planning. He argues that while the assumption underlying these programs is sometimes right, it often neglects the reality of living in extreme poverty; he argues that such programs contain much that is useful, but also much that is irrelevant to those living in extreme poverty. He advises that such programs may be more useful if they started from an understanding of how the poor successfully cope when living on incomes as low as $2 per day. 31 Instead of a normative approach, it should take a positive approach (starting from what the poor currently do to effectively cope) by recording the best practices and formalizing them. 32 Meta-Analyses of Financial Education Experimental, quasi-experimental and qualitative studies have been conducted over the last ten years, to assess whether a global reliance on financial education to increase financial knowledge and behavior is called for. To make sense of this large body of literature, several researchers have conducted meta-analyses in the last year, to compare and contrast these findings. A review, conducted by Miller, Reichelstein, Salas and Zia, presents a systematic meta-analysis of the literature on general financial education interventions. The analysis focused on financial education studies designed to strengthen the financial knowledge and behaviors of consumers. Discussions were held around 188 papers presenting impact results of interventions. Dimensions such as delivery channel and target population differed between studies. The results from the meta-analysis indicate that financial literacy and capability interventions can have a positive impact in some areas (e.g. increasing savings and promoting financial skills such as record keeping) but not in others (e.g. credit default). 33 The researchers conclude that where randomized controlled trials have been done, the results of impact appear limited at best, indicating perhaps omitted variables or publication bias may be present for studies not employing these rigorous methods. 34 From the findings they further conclude that financial education can impact some financial behaviors that are considered fundamental to good personal financial management. Interestingly, as opposed to some previously mentioned findings, other features which could be expected to influence the impact of interventions (e.g. delivery mechanism, duration of to the treatment, location of the intervention such as school, community, workplace) were not shown to be significant, keeping in mind, though, that the small sample size limits the power of the statistical analysis. 35 Lynch, Fernandes and Netemeyer compared the strength of findings across studies with different designs and different kinds of statistical analyses, all exploring a same central question: What is the connection between financial literacy and the choices that people make about their finances? They compared findings from 188 studies that had engaged 585,168 participants. Their main findings suggested that the amount and timing of financial education matters. Education that closely precedes a financial decision has more impact. In addition, interventions with many hours have larger effects than short interventions, when behavior is measured soon after the intervention. In addition, they found that the impact on behavior diminishes over time. Furthermore, they found that behaviors and literacy as measured to date are weakly linked. The connection between financial literacy and positive behaviors ranged from percent for studies with experimental designs to percent for studies that looked for correlations using basic statistics. The researchers thus pose that only 0.1 percent of the variability in whether people engage in healthy or unhealthy financial behaviors is explained by whether or not they were given a financial literacy intervention. Based on their findings on the delivery of financial education, the researchers concluded that future financial education should perhaps include a greater focus on soft skills and confidence rather than pure knowledge. 36 They also suggest re-examining efforts on child and youth financial education, especially if intended to delay behavior. There must be some immediate opportunity to enact and put to use the knowledge or it will decay. 37 This may support the notion that interaction with real money, savings or a financial services as well as a combination with soft skills could be beneficial, which will be further explored below. There must be some immediate opportunity to enact and put to use the knowledge or it will decay. 31 Wentzel, A. (2013). Why Financial Education Fails the Extremely Poor. Draft. University of Johannesburg. Retrieved from: 32 Ibid, p Miller, M., Reichelstein, J., Salas, C. and Zia, B. Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature Policy Research Working Paper Ibid, p Ibid, p Lynch, J. G., Fernandes, D. and Netemeyer, R. G. The Effect of Financial Literacy and Financial Education on Downstream Financial Behaviors. 37 Ibid, p. 30. Children, Youth & Finance: Action for Sustainable Outreach 47

48 Aflatoun conducted a systematic review and meta-analysis exploring the effectiveness of financial education aimed solely at children and youth and found that financial education is effective in improving knowledge, attitudes and behaviors. Studies that were focused on children and youth, and that had a randomized design, were included and ranged from 1985 until The screening process found 21 unique studies that met these criteria. The researchers found the strongest and the most significant impact on knowledge gains and overall modest improvements in attitudinal and behavior change. Six studies provided comparable behavior outcomes, of which five produced results in favor of the financial education. However, the use of a Fixed Effects model in assessing the behavior outcomes reduced the overall effect-size to 0.06 with small variance (95% CI: 0.04, 0.07), due to the fact that one study, Bruhn et al (which is described above) dominated the results in this model with 81.7% of the weight, indicating that a Random Effects model is preferable. Interesting to note is that the best program for changing financial attitudes was the Suubi Project that combined financial topics, health topics, and financial access with young single and double orphans in Uganda (conducted by Karimli 2013; Ssewamala et al 2009). The strongest program for changing financial behavior was the Aflatoun curriculum which combines social and financial topics and targets younger populations. The combined effect of these two studies was 0.16 (0.08, 0.24), which was twice that of the overall effect. Across interventions those that combined financial education with another component, targeted young beneficiaries and had a shorter overall intervention were more effective at changing behavior. The researchers conclude from their findings that generally, financial education does produce tangible gains in financial capability among children and youth. 38 Conclusions Recent research on the role that financial education can play for young people draws a similar, encouraging, but somewhat mixed picture on the impact of financial education. Effects on financial knowledge appear to take place across the board, but reports on effects on financial attitude and behavior are still inconclusive. A range of situation specific features may be related to the impacts financial education, including location, voluntary nature and delivery method of courses, which may or may not affect the outcomes of treatment. There is still little agreement or confirming research on what encompasses effective financial education and whether increasing financial literacy in young people will lead to actual better financial outcomes and behavior. Some features have been identified as potentially having a complementing effect, such as learning while doing, and soft skills building. Children and Financial Inclusion Financial Inclusion has been proven to have the potential to play a key role on a micro and a macro level. Micro level evidence for adult populations shows that the use of different financial products significantly affect the lives of the poor, in the form of access to credit for housing, savings to help households manage and build working capital, and formal savings to boost household welfare. Macroeconomic level evidence shows that financial inclusion is positively correlated with growth and employment and researchers by and large believe in an underlying causal impact. Mechanisms they mention to be important include lower transaction costs and better distribution of capital and risk. 39 An analysis conducted by CGAP on youth account penetration (percentage of youth under 25 who have an account at a formal financial institution) and over 50 indicators from the Global Findex and World Bank databases, additionally revealed correlations between youth savings and several indicators of socioeconomic status, including gross domestic product per capita and secondary school enrollment. The use of other financial products (adult savings, adult and youth loans, debit card use) was also found to strongly correlate with youth savings. The researchers conclude that other indicators could be expected when studied in more detail O Prey, L. & Shephard, D. (2014). Financial Education for Children and Youth: A Systematic Review and Meta-analysis. Aflatoun Working Paper 2014-C 39 CGAP (2014). Financial Inclusion and Development: Recent Impact Evidence. Focus Note No Kilara, T., Magnoni, B. and Zimmerman, E. The Business Case for Youth Savings: A Framework. 48 Children, Youth & Finance: Action for Sustainable Outreach

49 Previous findings on financial access, inclusion and youth, suggest positive economic, social, and health outcomes for youth, falling in all into six broad categories: Economic and financial well-being; Financial knowledge and skills; Psychological health; Reproductive and sexual health; Academic achievement; Education attainment and expectations. Below, a short review is given on the most recent results ( ) within the growing body of research on assets, savings and financial inclusion. Below in Figure 8, an overview of inclusion literature can be found, compiled by Elliott and Friedman. These authors have done extensive research on the role that access to savings can play for young people and have summarized some of the key research findings ranging from 2010 until Below the graph some more recent research from 2013 and 2014 will be summarized. Figure 8 Summary Research on Children s and Parents Savings Source: Friedline (2014) Within the more recent body of work, a large portion of research on asset building and savings looks into their effects on educational attainment. The Economics of Education Review has recently dedicated a special issue to exploring the role of savings and asset holding in post-secondary educational achievement, edited by two leading academics in this field, Michael Sherraden and William Elliott III. This section begins by providing some results on the role that the family, households and economic socialization can play in the impact of savings for children. The section then moves into the role of savings for future savings, after which we move to child development and individual accounts. A study from 2013 on the Youthsave experiment, looked at the impact of household possessions on the academic achievement of youth in Ghana; findings affirm the hypothesis that these can have a positive impact on academic achievement as youth from households that reported owning at least one of the five appointed household possessions, scored higher on English than their peers from households that did not own any. Results additionally indicate that ownership of household possessions did not have a significant impact on math scores of young people. Researchers conclude that these results are consistent with prior findings, and that it presents evidence of the importance of family economic background, particularly asset ownership, on youth's academic achievement in language. 41 In addition, using longitudinal data from a panel study on income dynamics, Friedline created a combined measure for children aged 12-19, and parents' savings account ownership in order to predict savings outcomes in young adulthood. 41 Chowa, G., Masa, R. D., Wretman, C. J. and Ansong, D. The impact of household possessions on youth's academic achievement in the Ghana. Youthsave experiment: A propensity score analysis Children, Youth & Finance: Action for Sustainable Outreach 49

50 Parents owning savings accounts for their child emerged as the strongest predictor for young adults savings account ownership. Young adults were almost three times more likely to own accounts when their parents were saving on their behalf seven years earlier, compared to neither children nor parents having savings accounts. Researchers indicate that if a purpose of children s savings policies is to improve children s financial behavior by staying connected with financial products such as savings accounts in young adulthood, CDAs (child development accounts) may produce this effect regardless of whether accounts are in children s names or whether parents save on children s behalf. They do point out that savings accounts in mainstream banking institutions and in savings programs are conceptually distinct from CDAs as mainstream banks require a parent or legal guardian to be named as an account custodian and it is up to them to designate accounts in children s names. 42 Parents owning savings accounts for their child emerged as the strongest predictor for young adults savings account ownership. Using the same data set, Huang then examined whether intergenerational transmission of educational attainment varies by household assets. Results show that among male children household assets increase the strength of the association between parents and children's years of schooling. Also, household assets are found to interact with parental education to affect educational attainment, as measured by college completion. 43 Both these findings additionally support the financial socialization perspective that suggests children s savings is linked to the type of relationships within the family. 44 A third study in this area by Webley and Nyhus analyzed the role that economic socialization plays in the economic behavior and asset accumulation of young adults using data from Europe. They studied the role of four elements of economic socialization including pocket money, jobs at home, work for others, and parental encouragement, using a sample of young adults in the Netherlands. Results showed positive correlations between parental encouragement and the ability to control spending, future orientation, and conscientiousness. Additionally, in Norway, a sample of teenagers and their parents is assessed. Analyses revealed a small difference in the socialization of adolescents from poorer and less educated backgrounds, as they were less likely to receive pocket money and to have part-time work but were more likely to have savings accounts at a younger age. The researchers conclude that these variations in the economic socialization by parents emphasize the importance of financial education in schools. 45 While research is incomplete and mostly focused on developed countries, there are a few studies that point to the potential for savings in childhood leading to continued savings later in life and improved financial well-being in adulthood.. Friedline, Elliott and Chowa asked whether or not young adults in the US, among lower income households, were more likely to own savings accounts and to accumulate savings when they had access to savings accounts at banking institutions as adolescents. They used longitudinal data from the Panel Study of Income Dynamics and its supplements. Results supported the hypothesis. The researchers conclude that policies in place aimed to increase asset building and that prolong early access to savings accounts may improve savings outcomes for young people, which could potentially afford them with the economic means to lead a more productive life. 46 Furthermore, a good deal of research has been conducted on Child Development Accounts, for which a clear case is slowly being built. A study based in Oklahoma looked at a statewide Child Development Accounts (CDAs) program and presented findings from a first experiment that tests the hypothesis that creating lifelong savings accounts for children at birth promotes their long-term well-being. A randomized experiment of CDAs was conducted using a sample of 7328 children from all infants born in two 3-month periods in Oklahoma. The intervention offered CDAs and additional financial incentives. Results showed that CDAs have positive effects on social-emotional development for children at approximately 4 years of age. The effects appear to be greater for low-income households. Researchers conclude that as a complement to other early education CDAs could improve social-emotional development in early childhood and these 42 Friedline, T. (2014). The Independent Effects of Savings Accounts in Children's Names on Their Savings Outcomes in Young Adulthood. Journal of Financial Counseling and Planning 25 (1). 43 Huang, J. (2013). Intergenerational transmission of educational attainment: The role of household assets. Assets and Educational Attainment: Theory and Evidence. Economics of Education Review. 33, p Ibid, p Webley, P. & Nyhus, E. K. (2013). Economic socialization, saving and assets in European young adults Friedline, T., Elliott, W. and Chowa, G. (2013). Testing an asset-building approach for young people: Early access to savings predicts later savings, Assets and Educational Attainment: Theory and Evidence. Economics of Education Review. 33, Children, Youth & Finance: Action for Sustainable Outreach

51 may influence parental attitudes, behaviors, expectations, and involvement; in turn, these may be able to significantly affect the child s development. 47 The impact of Individual Development Accounts (IDAs) was additionally tested by Grinstein-Weiss et al. In a randomized control trial the impact of a 3-year matched savings program was tested on educational outcomes, 10 years after its initiation. The effect on (1) educational enrollment, (2) degree completion, and (3) increased education level was tested. The program provided low-income households with financial education and matching funds for qualified savings withdrawals. The results show a significant impact on education enrollment and positive (but non-significant) impacts on degree completion. Looking at the interaction between gender and treatment the IDAs show a strong positive effect on increased educational attainment for men but not for women. 48 After suggesting that males may benefit more from IDAs than females, the researchers pose that it may be that using IDAs for educational purposes is easier and more accessible compared to issues such as buying a home. They propose that IDAs may be a desirable policy strategy to help increase education among low income adults. 49 Finally, research has been dedicated to finding out the most advantageous way that a savings product could be offered. Two aspects were explored in this study: group savings and purpose of savings. Karlan and Linden look at the potential role of commitment savings and financial behavior. These savings are characterized by individuals restricting their right to withdraw funds until they have reached a self-specified goal. Using a school-based commitment savings device they test for educational expenses in Uganda. They compared an account committed to educational expenses, to an account in which savings was available for cash withdrawal but intended for educational expenses (weak commitment) Surprisingly, the weaker commitment generates increased savings in the program accounts. When combined with a parent outreach program, this led to higher expenditures on educational supplies, as well as scores on language exams and math skills though no connection was found for the fully-committed account, nor for either account on attendance, enrollment, or non-cognitive skills. As in the context of an educational savings program, researchers find that families and children save more in a situation where funds are not dedicated to educational expenses upon deposit than they do under a strict commitment where all deposits are dedicated to educational expenses, they conclude that weaker rather than stronger commitments can, in some instances, prove more effective. 50 Ramirez studied the potential of poor youth to harness the power of groups to develop positive savings behaviors and long-term savings habits, based on the assumption that youth are at a stage when they are particularly susceptible to peer pressure. The significance of this approach became evident as Freedom from Hunger tested three different group models of financial services integrated with financial education as part of its Advancing Integrated Microfinance for Youth (AIM Youth) initiative. They explored the ability of groups as a platform to nurture a habit of savings among young people by providing a mechanism to save regularly and to promote good money management skills through financial education. In the course of three years of implementation, they have found stronger results in promoting savings behaviors among a greater number of young people when they are able to save in a group and receive financial education than when they save individually. An additional review points to savings groups as a very promising approach to building financial capability for young people, especially for those who are economically vulnerable and have access to limited resources. Group-based approaches build on the positive dynamics generated by the group structure, social capital and social pressure to increase savings. 51 They also find that when this is complemented with financial education young people are better equipped to create a lifelong savings habit, in addition to making smart money-management decisions for their future Huang, J., Sherraden, M., Kim, Y. and Clancy, M. (2014). Effects of Child Development Accounts on Early Social-Emotional Development. An Experimental Test. JAMA Pediatrics March 2014 Vol. 168, Grinstein-Weiss, M., Sherraden, M., Gale, W. G., Rohe, W. M., Schreiner, M. and Key, C. Long-term effects of Individual Development Accounts on postsecondary education: Follow-up evidence from a randomized experiment. Assets and Educational Attainment: Theory and Evidence. Economics of Education Review. 33, Ibid, p Karlan, D. & Linden, L. L. (2014). Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda. NBER Working Paper p Ramírez, R. & Fleischer-Proaño, L. (2013). Saving Together: Group-Based Approaches to Promote Youth Savings. 52 Ibid. Children, Youth & Finance: Action for Sustainable Outreach 51

52 Conclusions Gradually, the body of evidence for family assets and savings, savings itself, development accounts and individual accounts is growing extensively. All in all, the results of these studies are positive and savings behavior and educational outcomes are key outcomes. It remains to be seen whether financial inclusion, in its many forms, may also be linked to increased confidence, outlook on the future, and employment for youth. Children and Financial Capability Where the above shows that financial inclusion can play a role in academic attainment as well as savings behavior, and vice versa, financial education can have an important role to play in helping individuals to access and use appropriate (formal financial products). In 2010, the OECD/INFE launched a project on the role that financial education could play in financial inclusion. The results show that low levels of financial inclusion are associated with lower levels of financial literacy. 53 The interplay between financial inclusion and financial education has led some to embrace the concept of financial capability as having both individual and structural components. To be financially capable, people must have financial knowledge and skills as well as access to appropriate financial services to enhance social and economic well-being. 54 Several studies in the last few years have corroborated this thesis, especially focusing on financial literacy outcomes. This section will discuss those that came out in the last two years. Some of the recent studies above already suggest the importance of games or activity based learning, but as early as 1985, research has suggested that Children develop financial and economic understanding when they have personal economic experiences 55 as results showed that children learn from observation, instruction, and practice. For example, Sherraden & Johnson propose that financial capability results when individuals develop financial knowledge and skills, but also gain access to financial instruments and institutions. 56 More recently, Whitebread and Bingham reviewed the literature on habit formation, to gain a deep understanding of habits that can impact financial capability later in life. They find that by the age of seven years, several basic concepts relating broadly to later finance behaviors will typically have developed. 57 They go on to outline those behaviors and discuss counting, conservation, the ability to plan ahead and choice architecture. They conclude that the enjoyment of doing something with the parent, a familiar habit or the feeling of mastery in participating in adult activities such as going to the bank, provides sufficient motive for young children, and interventions to introduce or change young children s financial behaviors should take advantage of such motivations. This is also based on the generally excepted premise that children learn from observation, instruction, and practice. 58 A study from 2014, conducted by Jamison, Karlan and Zinman, provides somewhat mixed evidence on the effectiveness of financial education in combination with formal savings accounts for youth. The study randomly assigns 250 youth clubs to receive financial education, access to a group account, or both. The financial education treatments showed to increase financial literacy where the account-only treatment did not. More importantly administrative data showed that the education plus account treatment increased bank savings relative to the account-only condition. However, survey-measured total savings showed approximately equal increases across all treatment conditions. Earned income also increased in all treatment arms. The researchers therefore conclude to have found little evidence that education and account access are strong complements, but some evidence they are substitutes. 59 Conversely, the first ever rigorous assessment of impact of classroom based financial education and access to bank or credit union at school, conducted in 2 school districts in Texas and Wisconson, shows positive results for financial knowledge, behavior and attitudes. The treatment arms existed of randomly assignment to in school financial education 53 Atkinson, A. & Messy, F (2013). Promoting Financial Inclusion through Financial Education OECD/INFE EVIDENCE, POLICIES AND PRACTICE 54 Sherraden & Ansong (2013), p Schug, M.C., and Birkey, C.J. (1985). The development of children s economic reasoning. Theory and Research in Social Education, 13(1), 31-42; in Whitebread, D. & Bingham, S. (2013). Habit Formation and Learning in Young Children. The Money Advice Service, May Sherraden M.S. & Johnson, L. (2006). From Financial Literacy to Financial Capability Among Youth. 57 Whitebread, D. & Bingham, S. (2013). Habit Formation and Learning in Young Children. The Money Advice Service. 58 Ibid, p Jamison, J. Karlan, D. and Zinman, J. (2014) Financial Education and Access to Savings Accounts: Complements or Substitutes? Evidence from Ugandan Youth Clubs. May 2014, NBER Working Paper No. w Children, Youth & Finance: Action for Sustainable Outreach

53 by classroom and/or assignment to an in school credit union or bank. This study, conducted by CFED, showed that all treatment arms compared to control groups showed a significant increase in score change. Students with bank accounts were found to have larger effects in changes in learning as opposed to students who just received financial education, in addition, this data, though limited for students with bank accounts, suggests that education is related to students more active usage of their accounts. Attitudes towards saving and banks also improved. In a 2 year follow up it was shown that this learning persisted over time. Researchers concluded from these results that a). Class-room based financial education could provide great benefits b)in-school bank branches may be an effective way to introduce financial capability to children c) If this measure continues to prove successful, financial institutions could use guidance on regulation and state laws on how to incorporate such a schoolbank in other schools, and within that protect the child. 60 Conclusions Practice has long been seen as a key component in learning and needs to be taken into consideration. Although, the evidence on this concept linked to financial capability is still in development, it does indicate that teaching children financial capability that includes a learning while doing approach, could generate benefits over teaching financial knowledge alone. Existing opportunities for parents, schools and teachers to support a childrens financial capacities to defer gratification and familiarize them with finance, all aid the development of a child s executive functions, underpinning their financial habits and behavior Financial, Social and Livelihoods Education and Their Impacts on Young People To complement the evidence available on the financial capabilities of youth, this section provides a literature review on relevant evidence on social and livelihoods education, and whether they have been studied alongside financial education. Studies range from 2003 to Building a Livelihood: What Works? Livelihoods Education relates to programs aimed at developing employability skills and entrepreneurial behavior. CYFI uses a version of the UNICEF definition of Livelihood Skills: Capabilities, resources and opportunities to pursue individual and household economic goals. Livelihood skills relate to income generation and may include technical and vocational skills, job seeking skills, business management skills, entrepreneurial skills and money management skills. 61 Increasingly, the evidence on the benefits of livelihoods education is showing the divide between the conceptualization and application of livelihoods education and has emphasized the role of the market in livelihoods and reduction of poverty. 62 Research shows that the condition of the market is important to keep in mind because it is these conditions that will determine whether or not economic and social policies aimed at improving youth livelihoods education will succeed. A recent paper on missing links in Livelihoods Analysis argues that more explicit attention to interactions between institutions, technology and assets in livelihood analysis may be valuable in conceptualizing and managing programs for livelihood development and poverty reduction. 63 Not only is it important to understand the state of the market it is also essential to understand if policies aimed at improving the youth s standing in the market is working. As an example, the Labor Market Vulnerability Framework 64 was developed by the ILO to do exactly this. This framework determines the difficulties that youth face on the road to employment and based on this framework helps develop policies that measures up to the standards that have been set. 60 CFED (2014). Financial Education & Account Access Among Elementary Students: Findings from the Assessing Financial Capability Outcomes (AFCO) Youth Pilot UNICEF (2011) Life skills Definition of Terms. Retrieved from: 62 Dorward, A., Poole, N., Morrison, J., Kydd, J. and Urey, I. (2003). Markets, Institutions and Technology: Missing Links in Livelihoods Analysis. Development Policy Review, 21: Ibid. 64 Ibid. Children, Youth & Finance: Action for Sustainable Outreach 53

54 One of the primary concerns of livelihoods policies is youth unemployment. The biggest challenge in regards to youth unemployment is the increasing number of Not in Education, Employment, or Training (NEETs). To gain a better understanding of the experience of NEETs, years old, a trail program was launched by the Taiwanese government known as Flying Young. 65 The study indicates that most of the respondents did not become NEETs by choice; they did so for economic reasons. 66 These interviewees also took part in a job training program and while the program was of little help, it did give them social and emotional support and helped them feel better about themselves. 67 Therefore, often it is noted that job training may not be the answer for NEETs and a more comprehensive program that is specific to their needs, must be developed. Furthermore, in order to curb youth unemployment most livelihoods policies focus on developing vocational training programs. A recent paper on Youth Unemployment and Vocational Training analyzes the contextual influences on youth employment transitions such as the role of demographic factors, economic growth and labor market institutions. 68 The paper is supportive of vocational education and training systems combining work experience and general education, and goes on to discuss potential policies in regional contexts. 69 A study conducted by the Poverty Action Lab, in Malawi, analyzed the vocational training program launched by the Government of Malawi. The researchers carried out a randomized evaluation of the program s effect on skill development, economic outcomes, and measures of well-being. 70 The results of the study indicated that the training program led to increased skills development and improved well-being. 71 In fact individuals invited to the training program increased their self-reported level of expertise by 2.6 points on a 10-point scale (compared to a baseline of 2.6 points for the comparison group). 72 Additionally the training program helped individuals attain and increase their knowledge of important business skills such as the ability to calculate profit and how to start a business. 73 At the completion of the training it was noted that these individuals continued to invest in human capital and increased their total hours spent on skill development by 6.5 hours a month, a large increase relative to how the comparison group spent its time. 74 Furthermore, the study indicates that the training program did not only improve the skills of individual participants but it also made substantial improvements in their well-being. The program increased the share of respondents who reported being happy and satisfied with life, and who agreed that life had improved during the last year. 75 An important finding to note is the discrepancy in results between males and females, as women invitees spent less time in training compared to men and were no more likely to spend additional time on skill development after training compared to non-invitees. 76 The researchers concluded that these differences were most likely attributed to the societal restrictions and responsibilities that the women have. The impact of entrepreneurship training is also increasingly showing positive results. A report on youth entrepreneurship in Tunisia presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. 77 The results indicate the entrepreneurship track was effective in increasing self-employment among applicants, but that the effects are small in absolute terms. 78 However, it is essential to note that the rate of employment of the applicants remained the same, pointing to a partial substitution from wage employment to self-employment. 79 Despite the lack of large scale results, it is evident that the 65 Chen, Y. (2009). Once NEET, Always NEET? Experiences of Employment and Unemployment of Youth Participating in a Job Training Program in Taiwan. Welfare Academy. Retrieved from: 66 Ibid. 67 Ibid. 68 Biavaschi, C., Eichhorst, W., Giulietti, C., Kendzia, M. J., Muravyev, A., Pieters, J., Rodríguez-Planas, N., Schmidl, R., and Zimmermann, K. F. (2012). Youth Unemployment and Vocational Training. IZA Discussion Papers 6890, Institute for the Study of Labor (IZA). 69 Ibid. 70 Cho, Y., Kalomba, D., Mobarak, M. and Orozco, V. (2011). Evaluation summary: IMPACT OF VOCATIONAL TRAINING ON THE EMPLOYABILITY, EARNING POTENTIAL, AND SEXUAL BEHAVIOR OF YOUTH IN MALAWI. Retrieved from: See also: Cho, Y., Kalomba, D., Mobarak, M. and Orozco, V. (2013). Gender Differences in the Effects of Vocational Training: Constraints on Women and Drop-out Behavior. World Bank Policy Research Working Paper #6545.Paper # Ibid. 72 Ibid. 73 Ibid. 74 Ibid. 75 Ibid. 76 Ibid. 77 Premand, P., Brodmann, S., Almeida, R., Grun, R., and Barouni, M. (2013). Entrepreneurship Training and Self-employment Among University Evidence from a Randomized Trial in Tunisia. Gender Impact: the World Bank's Gender Impact Evaluation Database. Washington DC. World Bank. Retrieved from: 78 Ibid. 79 Ibid. 54 Children, Youth & Finance: Action for Sustainable Outreach

55 entrepreneurship program fostered business skills, expanded networks, and affected a range of behavioral skills and also heightened graduates' optimism toward the future shortly after the Tunisian revolution. 80 A study conducted by Krause et al. on economically disadvantaged youth participating in entrepreneurship training in the suburbs of Nairobi, Kenya, found that specifically analyzed training programs in low income settings discusses the obstacles to entrepreneurship training program design, [that are] posed by the convergence of excessively high aspirations, limited capabilities, and contextual factors that restrict the ability of youth to utilize their training in effective ways. 81 They found that the youth increased in their financial literacy and knowledge, but their aspirations remained constant over the course of the program. 82 Other research highlights the factors that need to be taken into consideration when designing livelihoods training, such as context specificity. A study conducted on the Changing Nature of the School-to-Work Transition Process in OECD Countries, examines youth unemployment problems in the context of the OECD countries. The difficulties that the youth face within this area are unique. For example, there is a relatively high proportion of young people leaving school without a basic education qualification; and skills acquired in initial education are not always well adapted to labor market requirements. 83 This study indicates that each region or country has a different amalgamation of problems that hinder youth employment, requiring that policies and projects are contextualized in an appropriate manner. Additionally, Cho and Honorati, conducted a meta-analysis of multiple entrepreneurship programs based on 37 impact evaluation studies to draw lessons on the effectiveness of different design and implementation arrangements. 84 They discovered that the largest hurdle for youth is access to credit and that business training can also contribute to increase in earnings among youth and those with higher education in part by improving business performance. 85 According to their analysis, training programs prove more effective by combining training with counseling or financing. 86 The conclusion of their meta-analysis was that combinations of different intervention types matter for different beneficiaries under different contexts 87 and that holistic approach prove to be more beneficial and have more impact on youth and highly educated individuals. Training programs prove more effective by combining training with counseling or financing. Conclusions Livelihoods training has been associated with increased overall satisfaction, skills development and economic outcomes. Results that livelihoods programs render for aspirations are inconclusive and may be further explored. Combinations of different intervention types appear to play a different role for different beneficiaries under different contexts. A more holistic approach to livelihoods building, including a financing or coaching component, proves to be more beneficial and have more impact on youth. 80 Ibid. 81 Krause, B. L., Chapman, D., and DeJaeghere, J. (2013). High Aspirations, Limited Capabilities, Challenging Context: An Empirical Look at Entrepreneurship Training Program in a Low Income Setting. World Studies in Education, Vol. 14, No Ibid. 83 Quintini, G., Martin, J. P., and Martin, S. (2007). The Changing Nature of the School-to-Work Transition Process in OECD Countries. WDA-HSG Discussion Paper No Retrieved from: or 84 Cho, Y. and Honorati, M. (2012). Entrepreneurship Programs in Developing Countries : A Meta Regression Analysis. World Bank. Retrieved from: 49_ Ibid. 86 Ibid. 87 Ibid. Children, Youth & Finance: Action for Sustainable Outreach 55

56 The Impact of Adding a Social Component to Learning Social education includes programs aimed at increasing knowledge of human rights, encouraging self-reflection and selfawareness and instilling respect for oneself and others. Though few studies have been conducted to assess the impact of social education there are some examples that highlight the benefits of including social and life skills elements into educational programming. First, relevant studies to highlight are those conducted by Tom Lucey, which indicate that financial education processes do not meet the needs of all children, because they do not account for differences in child development prompted by various economic contexts. 88 In order to overcome these issues and to provide children with equal opportunities that are sensitive to their context, Lucey suggests that art should be used to enable student discovery and reconciliation of financial judgments so that students may construct understandings of the social issues that prompt financial inequities and may explore ideas to challenge them. 89 Another example is The International Civic and Citizenship Education Study (ICCS) from 2009 which was the third study conducted by the IEA on citizenship education. This study reported on the results of student achievement in a test of knowledge and conceptual understanding, as well as student dispositions and attitudes relating to civics and citizenship. 90 This data was based on results from 20 different countries, all focused on 14 year olds. 91 It was noted that all of the participating countries had different approaches to civic and citizenship education. The results of the study highlighted that the majority of students endorsed democratic values, gender equality, and equal rights for ethnic or racial groups and immigrants, though this varied across countries. 92 Overall the study indicates the diverse programs that are utilized for civic and citizenship education and the impact that these programs have on the youth. Evidence in business and health education suggests that without empowerment, knowledge is hard to translate into behavioral change. Then, additional evidence is found on the combination of social and livelihoods education. The development of these skills together allows youth to improve both their employability and soft skills needed to thrive in work and within their communities. An example is a study conducted on Brac s Program for Adolescent Girls in Uganda which assesses the benefits of health and vocational training. Researchers evaluated the impacts of a program designed to empower adolescent girls through the simultaneous provision of: (i) like skills to build knowledge and reduce risky behavior; (ii) vocational training enabling girls to establish smallscaleenterprises. 93 This study included a sample of 4,800 girls and was conducted over the span of two years. 94 The researchers discovered that the life skills training had an immense impact on heal th awareness and behavior. Outcomes included greater knowledge on HIV/AIDS, pregnancy and STDs, more likely to use contraceptives, and less likely to have a child. 95 Additionally, from a baseline of 21%, there is *was+ the near elimination of girls reporting have recently had sex unwillingly. 96 Vocational training was found to raise the likelihood of girls being engaged in income generating actives by 35%. 97 This evidence suggests that there are benefits to using a multi-prong approach to empowering youth. Concurrently, researchers concluded that combined interventions might be more effective among adolescent girls tha n single-pronged interventions aiming to change risky behaviors solely through related education programs, or to improve labor market outcomes solely through vocational training. 98 Furthermore, Population Council developed a program known as Safe and Smart Savings Products for Vulnerable Adolescent Girls, a program that now reaches around 12,000 adolescent girls in Kenya and Uganda, 88 Lucey, T. (2007). The Art of Relating Moral Education to Financial Education: An Equity Imperative. Social Studies Research and Practice 2, (3). 89 Ibid. 90 IEA (2009). The International Civic and Citizenship Education Study. Retrieved from: 91 Ibid. 92 Ibid. 93 Bandiera, O., Buehren, N., Burgess, R., Goldstein, M., Gulesci, S., Rasul, I., & Sulaiman, M. (2012). Empowering Adolescent Girls: Evidence from a Randomized Control Trial in Uganda. Retrieved from: 94 Ibid. 95 Ibid. 96 Ibid. 97 Ibid. 98 Ibid. 56 Children, Youth & Finance: Action for Sustainable Outreach

57 to help vulnerable adolescent girls build assets, support networks, and savings in order to break the grip of poverty. 99 This consisted of three main components: weekly meeting with a female mentor, financial education and management of individual savings accounts. Each group comprised of girls aged or aged At the conclusion of the program the research group discovered that the girls felt that they had made new friends, [had] a safe space to meet with friends, and a female mentor t hey could go to for guidance. 101 It is interesting to note girls who only had a savings account but did not receive reproductive health information and the social support associated with being part of a group were at increased risk of experiencing sexual harassment and exploitation, 102 whereas girls who did participate in all aspects of the program were protected from sexual violence and showed significant improvements in r eproductive health knowledge. 103 The research group concluded girls need a combination of social, health and economic assets, and that increasing a girl s economic assets, without accompanying social support, skills, and self -esteem, can actually increase her vulnerability. 104 Similarly, the Global Partnership for Youth Employment evaluated the Kenya Youth Empowerment Program, called Ninaweza. This was a two year program established in 2011 targeting young women living in the informal settlements around Nairobi 105 and the purpose was to improve the employability and earning capacity 106 of these young women. Ninaweza provided the women with technical training in Information Communication Technology (ICT), training in life skills, work experience through internships, and job placement. 107 The program was an overall success and provided those treated with technical knowledge in IT and knowledge of life skills that otherwise they would not have acquired. 108 Girls need a combination of social, health and economic assets, and that increasing a girl s economic assets, without accompanying social support, skills, and self-esteem, can actually increase her vulnerability. Last, several studies have been conducted to assess the relationship between financial education and a broader life skills approach. CYFI envisages this combination to lead to empowerment of young people, as opposed to just equipping them with skills. It has been proposed that empowering the poor to be problem -solvers could be more effective than any other government-led approach to economic development. 109 A study by Oseifuah (2010) indicated that Education and training at both high school and tertiary levels with emphasis on financial literacy and entrepreneurial skills may have significant implications for small, micro, and medium-sized enterprise development and growth for the youth entrepreneur in general in South Africa. 110 A study with somewhat mixed results was conducted in Zimbabwe (2010) with 50 adolescent female orphans, as it determined the feasibility of a combined microcredit and life-skills HIV prevention intervention. 111 After 6 months of 99 Austrian, K. and Muthengi E. (2013). Safe and Smart Savings Products for Vulnerable Adolescent Girls in Kenya and Uganda: Evaluation Report. Nairobi: Population Council. 100 Ibid. 101 Ibid. 102 Ibid. 103 Ibid. 104 Ibid. 105 International Youth Foundation (2013). Testing What Works in Youth Employment: Evaluating Kenya s Ninaweza Program. Retrieved from: Ibid. 107 Ibid. 108 Ibid. 109 Collier, 2007, Redefining Quality in Developing World Education. In Epstein, M. & Yuthas, K. (2013). Redefining Quality in Developing World Education. In Innovations, 8 (3-4). 110 Oseifuah, E. K. (2010). Financial literacy and youth entrepreneurship in South Africa. African Journal of Economic and Management Studies, Vol. 1 Iss 2 pp Dunbar, M. S., Maternowska M.C., Kang, M. J., Laver, S. M., Mudekunye-Mahaka, I., Padian, N. S. (2010). Findings from SHAZ!: A Feasibility Study of a Microcredit and Life-Skills HIV Prevention Intervention to Reduce Risk Among Adolescent Female Orphans in Zimbabwe. Journal of Prevention & Intervention in the Community Vol. 38, Iss. 2. Children, Youth & Finance: Action for Sustainable Outreach 57

58 the intervention, it was discovered that there were improvements in knowledge. 112 However, the financial education aspect of this intervention had little impact because of the economic context and lack of adequate support loan repayments and business success was poor. 113 Due to the lack of success on the microcredit front, the researchers concluded that microcredit is not the most feasible livelihoods option for adolescent girls in such economic contexts. In a different study, Siyakha Nentsha, a program designed to teach children livelihoods skills through formal education, was implemented through formal education. Researchers discovered that working through schools was the most effective way for the program to reach large numbers of participants 114 and over 1,400 young people 115 participated, including both boys and girls. The program was carried out by trained facilitators who were recent graduates from the schools and resided in the program communities, they led one-hour sessions with student two to three times per week. 116 The results of the program showed significant improvements in young people s attitudes and behaviors and all Siyakha Nentsha participants reported a large increase in knowledge of social grant requirements and criteria, had improved budgeting and planning skills, and were more likely to have attempted to open a bank account. 117 Furthermore, the female participants reported feeling higher self-esteem, greater confidence in their ability to obtain condoms, greater levels of social inclusion in their communities and were more likely to have obtained a national birth certificate. 118 On the other hand, participants of the study reported having fewer sexual partners and were more likely to have a South African ID than boys in the control group, and were more likely to have reported undertaking an incomegenerating activity. 119 Additionally, the Adolescent Development Program (ADP), supported by the Bangladesh Rural Advancement Committee (BRAC), set up in Uganda and Tanzania, which aims to increase the economic empowerment of adolescent girls in rural Uganda and Tanzania. 120 This program consists of a combination of life-skills training, income generation skills training, and access to microfinance. 121 A study was conducted to determine if adolescent girls can be empowered in rural settings, 122 and if so, how. It additionally looked at their economic outcomes, self-confidence and aspirations, as well as those of their siblings, adolescent friends, and parents. 123 The goal was to discover if the combination of these trainings helped empower adolescent girls. After following 4,888 girls over a period of two years, the researchers found the program to have a strong positive impact on economic, health and agency outcomes. The program increased the likelihood of participants participating in income-generating activities by 32%; fertility rates dropped by 26%; and adolescent girls reporting having had sex against their will during the past year dropped by 76%. 124 The researchers conclude that the ELA program demonstrates the strong positive effects of a combined life and livelihood skills training. Moreover, Berry, Karlan and Pradhan, evaluated two programs in Ghana focused on a program that aimed to increase financial literacy as well as social skills in 135 schools for grades One of these programs is the Aflatoun program, which comprises of both financial and social education, and the second is the Honest Money Box (HMB) program, which focuses solely on financial education. The study discovered that both programs increased savings behavior and risk aversion, while the HMB program also increased the child s likelihood of working. 126 However, the program had no significant impact on financial literacy, as measured through allocations in the shop games Ibid. 113 Ibid. 114 Hallman, K. and Roca, E. (2011). Siyakha Nentsha: Building economic, health, and social capabilities among highly vulnerable adolescents in KwaZulu- Natal, South Africa. 115 Ibid. 116 Ibid. 117 Ibid. 118 Ibid. 119 Ibid. 120 Bandiera, O., Burgess, R., Goldstein, M., Gulesci, S., & Rasul, I. Human Capital, Financial capital, and the Economic Empowerment of Female Adolescents: Evidence from a Randomized Intervention in Uganda and Tanzania. Retrieved from: Ibid. 122 Ibid. 123 Ibid. 124 Bandiera, O., Buehren, N., Burgess, R., Goldstein, M., Gulesci, S., Rasul, I. and Sulaiman, M. (2013) Policy Brief Issue 4. The World Bank Group Africa Region Gender Practice Policy Brief: Issue 41. Empowering Adolescent Girls in Uganda 125 Berry, J., Karlan, D. and Pradhan, M. (2013). Social or Financial: What to Focus on in Youth Financial Literacy Training? 126 Ibid. 127 Ibid. 58 Children, Youth & Finance: Action for Sustainable Outreach

59 Positive impacts on economic, health and agency outcomes (made) the researchers conclude that the program demonstrates strong positive effects of a combined life and livelihood skills training. On an end note, to empower young people to become critical thinkers, researchers propose a different method of teaching. The World Economic Forum prescribed pedagogical strategies for teaching, for example, entrepreneurship. It is reported that a lecture-based approach which is followed in most school systems is not sufficient for mastering entrepreneurship knowledge and for empowering students. Instead, they may participate in games and simulations that allow them to adopt and practice business concepts and skills. 128 Evidence in business and health education suggests that without empowerment, knowledge is hard to translate into behavioral change. Students thus need to be equipped with the rights skills and attitude to envision themselves operating within a livelihood context. 129 Conclusions Despite a broader movement towards a change in the lecture-based approach to education (into a more practice based education) results on complementing financial education with other life skills are rare. Those studies that are available are predominantly showing positive results, as evidence suggests that there are benefits to using a multi-pronged approach to empower youth. This resonates with the finding of the meta-analysis conducted by Prey and Shephard, which found that a financial education program complemented with a life skills component had the biggest effect on financial behavior. Moreover, gender may play a role in the effect of combined interventions. Girls may benefit more from a multipronged approach than boys do. At the least, there is a greater availability of this evidence for girls. More evidence is necessary to look at those skills needed to truly build a sustainable livelihood. 128 World Economic Forum (2009). Educating the next wave of entrepreneurs: Unlocking entrepreneurial capabilities to meet the global challenges of the 21st century. Cologny/Geneva Switzerland: World Economic Forum. 129 Epstein (2013). Redefining Quality in Developing World Education Innovations. Accelerating Entrepreneurship. Children, Youth & Finance: Action for Sustainable Outreach 59

60 4.3 Conclusion Recent studies focus on disentangling the links between financial literacy, asset accumulation, and financial capability. Evidence shows that financial education can improve financial literacy, but also raises questions whether financial literacy education is effective alone or whether it should be complemented with practice and life skills. There seems to be a dearth of programs, let alone evidence, that incorporate the complete range of pillars, as stated by the CYFI Model of Citizenship. However, program evaluations show that there is increased interest and impact in empowering young people by equipping them with financial, life skills as well as practical knowledge. Below we highlight a few areas where research is lacking. Areas of Future Research: Research should seek to improve the overall quality of the literature, which includes the application of robust experimental methods and the minimization of potential bias. This will help the overall value and comparability of research projects. Research should seek to explore the extent to which programs change learners attitudes as regards to money management, as well as improve savings behavior. The increase of high quality education programs me be a requirement for this comparison. Similarly, studies that have rendered robust positive results should be replicated, in order to impact policy and bring success to scale. Studies produced by CFED on financial inclusion and education as well as by Bruhn et al on financial education in school, are examples. Long terms effects of financial education programs of any kind should be studied. As, over the years, financial education programs have been implemented around the world, their effects may be assessed in the near future, that is, if a baseline analysis has been established from its initiation. It is necessary to test different educational approaches to financial education, livelihoods and life skills training and compare them to each other, in order to assess what method works best and could be brought to scale.. The question on how financial inclusion is most effective and what delivery methods can aid this process should be further evaluated. Research on financial education is still predominantly US focused and should include more samples from around the world. Platforms of researchers dedicated to the issue of economic citizenship should be created to bridge the regional gaps in evidence and generate research that is regional specific and relevant to local policy. CYFI is aiming to establish 5 regional research platforms to better engage local researchers in this capacity. More evidence is necessary on those skills that could complement financial behavior. Social and livelihoods skills should be a main focus of these studies. The role that soft skills could play in protecting young people from precarious situations, when offering them access to savings or formal accounts, needs to be explored in more detail. The role that this may play for young women may be a first area of focus. 60 Children, Youth & Finance: Action for Sustainable Outreach

61 Children, Youth & Finance: Action for Sustainable Outreach 61

62 10 Children, Youth and Finance: From Momentum to Action

63 Chapter 5 National Policies Towards Economic Citizenship Children, Youth and Finance: From Momentum to Action 11

64 Chapter 5 National Policies towards Economic Citizenship 5.1 Introduction This chapter aims to give an impression of the current status of global, regional and national policies focused on Economic Citizenship Education (ECE), the financial inclusion of young people and their sustainable livelihoods. It looks at national strategies, regional agendas and global efforts. In doing so, it aims to provide insight into those factors currently supporting and hindering these efforts. Through this exercise, it becomes clear where efforts are strong and where gaps can be found. This will provide a baseline and an understanding of the landscape in which the CYFI network is operating, and also set a course for change. The regional and national analyses are based on a sample of 111 countries 130 which were chosen based on their potential to reach scale and a government s willingness to invest in economic citizenship. Research conducted by the CYFI team was based on interviews with national authorities, strategy documents, as well as secondary sources such as the Organization for Economic Cooperation and Development s (OECD) analysis on the implementation of financial education strategies. 131 This chapter aims to add to the valuable work that the OECD has done, by expanding the analysis to non-oecd countries. It will also examine the financial inclusion of youth in national strategies, the way the youth segment is highlighted in financial education strategies and to the different educational components that may be added to financial education, in the form of social (life skills) and livelihoods education. Such a comprehensive mapping of these factors has never been carried out before. 5.2 Economic Citizenship Education Why it Matters UNESCO s Education for All Campaign identifies six main goals in regards to education, specifically concerning early childhood education, youth skills development and improving the quality of education around the world. According to UNESCO, the true test of an educational system is whether it fulfills its core purpose of equipping young people with the skills they need to develop a secure livelihood and to participate in social, economic, and political life. 132 In line with this reasoning, the CYFI framework for Economic Citizenship Education is based upon a balance between Social Education (SE), Financial Education (FE), and Livelihoods Education (LE). This Learning Framework is intended to guide the development and modification of related educational programming. In accordance with the UN Convention on the Rights of the Child (UNCRC), the aim of this education framework should be to promote, support and protect the human dignity innate in every child and his or her inalienable rights while taking into account the child s developmental needs and diverse evolving capacities For a list of countries that were included, please see Annex C. These countries were also chosen based on CYFI s pre-existing relationship with national authorities in these countries. 131 OECD (2013). Advancing National Strategies. A Joint Publication by Russia s G20 Presidency and the OECD. Available on: UNESCO (2011). The Hidden Crisis: Armed Conflict and Education, EFA Global Monitoring Report. 133 UNICEF (2007). A Human Rights Based Approach to Education for All Children, Youth & Finance: Action for Sustainable Outreach

65 Certain demographic and economic indicators highlight the need for a more comprehensive Economic Citizenship Education framework. There is an increasing focus on financial education as authorities have realized that better financial literacy skills could contribute to improved financial decision making, and that these decisions could, in turn, have positive effects not only on households but also on economic and financial stability more generally. 134 In most of the OECD countries there is ample room for improvement in providing financial education. It was discovered that only one in ten students across participating OECD countries and economies is able to tackle the hardest financial literacy tasks in PISA 2012 and across the participating OECD countries, the difference between the highestachieving 10% of students and the lowest-achieving 10% is considerably high (247 score points). 135 Lack of financial literacy can have crippling effects on the future economic well-being of children and youth. Lack of literacy reduces the economic well-being of children and youth and restricts their opportunities in society as a whole. Figure 9 highlights the low literacy rates for youth around the world. There are around million children around the world that are not enrolled in school, and this is devastating for their future sustainability. 136 Additionally, the youth unemployment rate, seen in Figure 10, is an important indicator when considering the importance of the livelihoods component of economic citizenship education since the skills developed can could boost the employability of the youth. According to UNICEF, livelihood skills can support children with income generation and may include: technical or vocational skills (e.g. carpentry, sewing, computer programming), research skills, interview skills, business management skills, entrepreneurial skills and skills in managing money. 137 The unemployment rate for youth stands at 15.5% 138 in OECD countries and the global unemployment rate was estimated at 12.6% in It is therefore Figure 9 World Literacy Rates Source: CYFI (2014) index_42104.html 134 OECD (2014). Students and Money: Financial Literacy Skills for the 21st Century Volume VI, p Ibid. 136 World Bank. Children out of School, Primary. World Bank Data. Retrieved Nov , on: < 137 UNICEF "Life Skills." Web. 31 Oct < 138 OECD (2014). OECD Harmonised Unemployment Rates News Release: December Web. 31 Oct < 139 ILO (2013). Global Employment Trends for Youth Web. 31 Oct < dcomm/documents/publication/wcms_ pdf>. Children, Youth & Finance: Action for Sustainable Outreach 65

66 essential to provide children and youth with the skills they need to increase their chances of employment. Additionally, about 225 million youth, in 2013, or 20% of all youth in the developing world, were NEET (i.e. not in education, employment or training). 140 This indicator is important to consider because it highlights the number of children and youth that are not employed or engaging in any activities that will increase their chance of employment. ECE can provide NEETs with the skills they need to identify and take advantage of employment and entrepreneurial opportunities. Figure 10 World Youth Unemployment Rates Source: CYFI (2014) Furthermore, it is common for children and youth to suffer physical abuse by those individuals responsible for their care, whether this is a family member, employer or a legal guardian. UNICEF's global database on violence currently contains data from 83 countries on women's attitudes towards wife-beating and data on men's attitudes towards wife-beating. Almost half of women aged in developing countries think that a husband is justified in beating his wife under certain circumstances. 141 There is a need to complement financial and livelihoods education with social education to empower children and youth and ensure that they are aware of not only their rights and responsibilities, but also those of others. Some have argued that children's rights education has value because it fulfills the obligations of countries to respect the rights of the child and implement the provisions of the UN Convention on the Rights of the Child. If children and youth are equipped with this knowledge, they would be more likely to take a stand in preventing or redressing abuse. Studies indicate that social education does in fact have a positive attitudinal and behavioral effect on children and youth. 142 In sum, CYFI advocates for a holistic framework that takes into account the financial skills, life skills and attitudes needed to find employment, build assets and thrive in society, and that also informs children of their rights and responsibilities. 140 UN Youth. "Youth and Education." Web. 31 Oct < 141 UNDP (2013). Social Exclusion Data See e.g. Tibbitts, F. (1997a). An Annotated Primer for Selecting Democratic and Human Rights Education Materials. Cambridge: Human Rights Education Associates and Open Society Institute; Tibbitts, F. (1997b). Evaluation in the Human Rights Education Fields: Getting Started. The Hague: Netherlands Helsinki Committee and Human Rights Education Associates. 66 Children, Youth & Finance: Action for Sustainable Outreach

67 5.2.2 ECE Strategies around the World Figure 11 Countries with a Focus on Financial Education Countries with an existing Child and Youth Focus in Financial Education Strategy Armenia Australia Belarus Brazil Canada Czech Republic Estonia Hungary Indonesia Ireland Malaysia Netherlands Nigeria Philippines Portugal Singapore South Africa Spain Turkey Uganda United States Zambia Countries drafting a Financial Education Strategy that includes a Child and Youth Focus Burundi Colombia Côte d'ivoire Dominican Republic Ethiopia[1] France Lebanon Mexico Moldova Morocco Palestine Paraguay Peru Romania Russian Federation Saudi Arabia Senegal Sweden Tanzania Countries with an existing Financial Education Strategy that are Considering a Child and Youth Focus Cambodia Kenya Malawi Nepal Thailand United Kingdom Source: CYFI (2014) Children, Youth & Finance: Action for Sustainable Outreach 67

68 National authorities, multilaterals and international organizations have acknowledged the importance of measuring levels of financial literacy and collecting information in order to accurately inform policy responses. As the numbers in the introduction reveal, among the general population (including young people), there are areas for concern. In most countries that were part of the OECD study, there is substantial room for improvement in terms of increasing financial knowledge. As a response, a growing number of national authorities have developed and implemented national strategies for financial education in order to improve the financial literacy of their general populations, often with a specific focus on children and youth. Additionally, financial education has been integrated into different levels of national curricula, allowing schools to share the responsibility with families for educating children about finance. The recent financial crisis has highlighted the importance of developing skills in financial management, building a livelihood and the need for sensitivity to social responsibility. This is especially the true for children and youth, for whom learning values of citizenship and financial resource management at an early age can decrease not only financial but also social vulnerability, thus reducing the risk of poverty. 143 This research, describing the national focus on different components of Economic Citizenship Education, aims to add to the data that is available on financial literacy. The information that was collected follows the rationale of the skills included in the CYFI Education Learning Framework, of which a summary example is provided in Figure 12. This framework suggests an age range but should not necessarily be taken as strict parameters. Information for this state of the field assessment was collected from 111 countries through surveys and interviews. 144 Those countries that have a strategy in place or are drafting one are summarized in Figure 11. Figure 12 ECE Learning Framework Social/Life Skills Education Financial Education Livelihoods Education Level 1: 0-5 years Level 2: 6-9 years Emotions, consequences, health, compassion Children s Rights, responsibilities, rules, listening skills Money, price, savings, belongings Needs and wants, savings plans, rewards, banks and financial services Career interest, professions, entrepreneurship, goals, initiative, problem solving skills, teamwork, taking advice, avoid hazards Level 3: years Express opinions, teamwork, research skills, appreciation for life-long learning Informed consumer, short vs. long term, financial risk, effects of advertising Vocations, opportunities, action plan, self-discipline, perseverance Level 4: 15+ years Social justice, time management, relationships, leadership Negotiation, purchasing power, interest rates, financial crimes Wages, capital, marketing, CVs, cope with change, management Source: CYFI (2014) 143 UNICEF (2012). Child and Youth Financial and Social Education. A companion to the Child Friendly Schools Manual. Available on: This data is therefore mostly self-reported. CYFI takes into account the disadvantages that come with self-reported data and cannot fully guarantee its accuracy. 68 Children, Youth & Finance: Action for Sustainable Outreach

69 Figure 13 Financial Education Strategies and their Child Focus FE Strategy in FE Strategy, No Draft, with child Child Focus focus FE Strategy, Considering Child Focus FE Strategy, Child Focus No FE strategy Source: CYFI (2014) First, a quick view on financial education strategies in Figure 13 shows that more than half of the countries in this sample either have a financial education strategy in place or in draft. Figure 14 shows that almost 40 % of those countries that have a financial education strategy are, in fact, OECD countries. Considering the fact that only 24% of countries in the whole sample are part of the OECD, it shows that OECD countries are definitely more inclined to focus on financial education on a national level. The work that OECD and the INFE network are doing in this field has evidently left its mark on both the interest and efforts made in this field. The graph also gives a picture of the number of countries that include a specific focus on children within their financial education strategy. Of those that have a strategy or are drafting a strategy, 22 % (13) of them do not focus specifically on children, as opposed to 66 % that do. A remaining 12% (7) that already have a strategy in place are considering extending their focus to the younger segment. These numbers indicate that young people are definitely considered a key target segment in strategic planning for financial literacy. Interestingly, of those 13 countries that do not have a child focus, or are not considering one, only 23% are OECD members, indicating that the extensive research OECD has conducted in financial literacy levels of young people may have increased awareness on the topic among its member states. Children, Youth & Finance: Action for Sustainable Outreach 69

70 Figure 14 Division of Financial Education Strategies over OECD countries 70% 60% 50% 40% 30% Financial Education Strategy 20% 10% 0% OECD non-oecd Source: CYFI (2014) Figure 15 Components of Financial Education Strategies Financial Financial; Livelihoods Financial; Social/Life-skills Financial; Social/Life-skills; Livelihoods N/A Social/Life-skills Source: CYFI (2014) 70 Children, Youth & Finance: Action for Sustainable Outreach

71 Figure 15 further lays out the different components that are integrated into national financial education strategies already in place. The integration of a financial, social and livelihoods components into the national strategy would entail a policy focus on the complete spectrum of Economic Citizenship. As would be expected, and as the graph indicates, 30 countries at least include a financial education component into their existing national strategy. Surprisingly, there is one country that does not; Cote D Ivoir reports to be working out the economic component of the financial education strategy, but already has an emphasis on social education, highlighting the relevance for young people to know their responsibilities and rights within the community. While combinations vary, in total 13 countries add a livelihoods component, and 15 add a social component to the financial component. Only 10 countries report to include the full spectrum of ECE components. For many countries (12), financial education still remains a stand-alone topic. Looking at the regional divide, the authorities that have progressed further in linking finance to at least one other topic are relatively well divided over regions (with 5 in Asia 145 and Europe, in Africa, 147 and 2 in MENA 148 ). Only one country in Latin America, Brazil, reports to complement its strategy with another topic, in this case both social and livelihoods components. The relevance given to life skills as an additional component is surprising, as in previous years we found a greater focus on linking financial education to employment and entrepreneurship. This result may indicate that awareness of rights and responsibilities is becoming more prevalent. However, previous CYFI analyses have had access to much smaller samples and may not have taken these additional strategic components into account. Moreover, a surprising 16 countries reported to not be aware of the thematic focus, related to the components of ECE, in their existing national financial education strategies. It remains to be determined whether this is due to a lack of knowledge on the thematic focus of the national strategy, a lack of understanding on the various components of the ECE learning framework, or a general lack of clarity on the future direction of the national strategy.. It is essential for CYFI to find out the reason for this lack of awareness in order to focus the efforts of the CYFI network in further developing holistic national strategies. Figure 16 Child Focus in Financial Education Strategies By region In progress Yes Africa Americas and the Caribbean Asia & the Pacific Middle East and North Africa Central Asia Europe Source: CYFI (2014) 145 Singapore, Cambodia, Philippines, China and Nepal 146 Ukraine, Estonia, Czech Republic, Portugal and Romania 147 Malawi, South Africa, Zambia, Uganda, Nigeria, Cote D ivoir and Ethiopia. 148 Palestine, Lebanon Children, Youth & Finance: Action for Sustainable Outreach 71

72 Figure 16 breaks down the 47 child-focused financial education strategies by region. The graph first indicates that there is a greater likelihood that existing financial education strategies in Asia and Europe include a child and youth focus than those in other regions. There, the youth segment is only now in the process of being incorporated. This case may be associated with the longer existing availability of youth products at formal financial institutions in Asia and Europe, and the greater demand for financial knowledge of these products for the young. It is important to sketch the differences between countries that report not to focus on the younger segment. First, many countries, equally divided over regions, have not yet focused policy discussions on the concept of financial literacy as a whole. While there is a realization of the importance of financial literacy, a policy response has not yet been given. It remains to be seen whether the younger segment will be part of this discussion when the shift takes place. For other countries, such as New Zealand, Latvia, Ghana, El Salvador, there is no specific focus on young people in the strategy because these countries are well advanced in the process of integrating financial education into the school curriculum. Figure 17 Educational Components in National Curricula Financial Education in Primary Curriculum Financial Education in Secondary Curriculum Social Education in Primary Curriculum Social Education in Secondary Curriculum Livelihoods Education in Primary curriculum Livelihoods Education in Secondary Curriculum All ECE components integrated in at least one grade Source: CYFI (2014) This brings us to Figure 17, which looks at which ECE components have been integrated into national curricula as a key subject. Ideally, CYFI would report the integration of a component into the curriculum after a rapid curriculum assessment has confirmed that two thirds of the core elements of each component are included in the curriculum. 149 For the purpose of this document, curricula information was gathered through surveys and through interviews with partners and collaborating organizations in the CYFI network. As expected, the focus on financial education in national curricula is the highest, with 24 for primary and 28 for secondary education. Social education follows second, with a particular focus at the primary school level. This finding can be attributed to the fact that social components are often traditionally embedded in existing citizenship classes in the curriculum.. This result resonates with the finding on social education in Chapter 4, which demonstrating predominantly positive results, or at least benefits to using a multi-prong approach to empower youth. Results also showed that a financial education program, complemented with a life skills component, had the biggest effect on financial behavior. 149 For an overview of all the ECE Framework s learning elements please see Annex C. 72 Children, Youth & Finance: Action for Sustainable Outreach

73 There is, however, a surprising dip in the results on social education from primary to secondary school levels, contradicting an assumption that more citizenship content would be offered in high schools. Reasons as to why this dip takes place need to be explored further through the CYFI network. It is not surprising that livelihoods education is featured less in primary school as the topics of entrepreneurship and career exploration may not yet be considered appropriate for children under the age of 15. Nevertheless, CYFI still encourages career exploration and entrepreneurial experiences for primary school children as they can learn more about the local economy and gain valuable interpersonal, leadership and teambuilding skills. Figure 18 Integration Financial Education in National Curricula Integration into Primary Education Integration into Secondary Education Source: CYFI (2014) Americas Africa MENA Europe Asia Eastern Europe & Central Asia Looking at the integration of the different education components by region in Figure 18, it is evident that financial education is more prominent in Europe. This may be linked to the fact that the financial sector is more developed in parts of this region, there are more products available for young people and authorities therefore see more relevance in educating young people on the usage of these products. In addition, there may be more resources available that can be attributed towards these policies and initiatives. Asia is a runner up in financial education integration, indicating a similar emphasis on finance as in Europe and an appreciation for early childhood learning. Figure 19 further breaks down findings across OECD/non-OECD countries and shows that 26% and 33% of OECD countries have financial education in their primary and secondary curriculum, respectively. This indicates that OECD membership slightly correlates with the integration of financial education into the curriculum and again highlights their work in this field. Children, Youth & Finance: Action for Sustainable Outreach 73

74 Figure 19 Financial Education In Curricula: OECD countries non-oecd OECD 33% 26% 20% 23% Count of Financial Ed in Curriculum Primary Count of Financial Ed Curriculum Secondary Source: CYFI (2014) Figure 20 Social and Livelihoods Education in National Curricula Social Education in Curriculum Livelihoods Education in Curriculum Africa Asia Europe Americas MENA Central Asia Source: CYFI (2014) Integration of social and livelihoods education appears relatively low across regions, besides social education in Europe, which may be linked to the previously mentioned prominence of citizenship education in European classrooms. Figure 20 shows that in African curricula there is a higher focus on life skills than on financial skills, indicating a potential confirmation of the picture that a) children and money do not mix well, and b) the role of how children fit in the community or society is more relevant for African curricula. In the MENA region, only the United Arab Emirates have 74 Children, Youth & Finance: Action for Sustainable Outreach

75 financial education integrated into their secondary school curriculum, where others do not yet focus on curriculum change. Romania, Latvia, Uganda, Ghana, and Albania, have all curriculum components integrated into their school curricula in at least one grade of the curriculum. Most of these topics are integrated into secondary class curricula. Brazil and Singapore are the only countries in this sample that have integrated the three education components into all levels of schooling. These results may indicate a slow increase in the interest in linking these components or may indicate that governments thus far do not know enough about the content of these different components. Until CYFI is able to do a complete mapping of all curricula, this conclusion cannot yet be drawn. The Link between Strategies and Curriculum Integration When examining some individual cases of national strategies and curriculum integration, a few particularities become evident that may shed light on the practical side of strategy implementation. Some countries, such as Azerbaijan, China and South Korea, have not yet integrated any of the components in the curriculum. Reported reasons are that national authorities are still determining the best way to implement these topics in schools. Interestingly, in other countries, financial education is integrated in at least one level of the school curriculum while there is either no financial education strategy in place (e.g. Kazakhstan, UAE, Malta, Albania) or one is being drafted (e.g. Moldova, Romania). This would indicate that the strategy formation follows the integration of the subject in the school curriculum. Reasons for this may be that the strategy formation is a multi-lateral initiative which requires more coordination and collaboration. In Kazakhstan, for example, financial education has been integrated into parts of the secondary curriculum for a few years already, but the planning of the national strategy is still taking place. Like in many countries, while the Ministry of Education leads efforts related to the curriculum, the National Bank would typically lead national strategy efforts. Despite the fact that components have already been integrated into national curricula, CYFI still considers it important to have a financial or ECE strategy in place because: a) When an issue such as education is institutionalized, it makes the approach towards financial literacy and economic citizenship more sustainable, b) When an issue is included in a national strategy it becomes a national policy instead of an initiative of one branch of government, and c) Including any form of education in a national strategy, aside from curriculum integration, will create the potential to specifically target youth not enrolled in school, which is a group that is often left behind. In sum, national strategies should try to maximize the financial education contact points that young people are exposed to, including teachers, private sector, government, parents and youth mentors. Test Box: Best Cases in Financial Education Strategies Brazil For a couple years now, Brazil has been praised for their efforts towards the full implementation of a National Strategy of Financial Education with an aim to reach all school-going children in the country. Brazil has been an example for being one of the first countries in the Americas to design a National Strategy for Financial Education with a multi-stakeholder approach. Recently, the country piloted a program in around 900 schools across the country. The pilot integrated financial education with the Brazilian school curricula and incorporated more than 70 case studies on financial literacy into Mathematics, Portuguese, Science, Geography and/or History classes. Equally impressive was the subsequent evaluation of this pilot. A large-scale evaluation the largest to date of financial education for youth in Brazil was conducted in order to understand the impact of a three semester long program that teaches high school students financial concepts. Morocco In Morocco, the national strategy for financial education is led by the Moroccan Foundation for Financial Education.Created on January 29, 2013, it was tasked with promoting principles and good practices in awareness-raising and financial education. It hasestablished financial education as a pillar of financial inclusion policy and has fostered national awareness-raising campaigns in order to improve financial capability amongst the population. Members of the Foundation include Bank Al-Maghrib, the Ministry of Economy and Finance, the Ministry of National Education, the Ministry of Higher Education, the Ministry of Endowments and Islamic Affairs, the Capital Markets Authority, the Insurance and Social Security Control Authority, the Management Company of the Casablanca Stock Exchange, the General Confederation of Moroccan Children, Youth & Finance: Action for Sustainable Outreach 75

76 Enterprises, the Moroccan Bankers Association, the Moroccan Federation of Insurance and Reinsurance Companies, the Professional Association of Finance Companies and the National Federation of Microcredit Associations. Latvia Representatives from the Central Bank of Latvia, and the Financial and Capital Markets Commission, decided to collaborate and form a working group for financial education when they met at the CYFI regional meeting for Europe in In February 2014, strategic partners signed the memorandum on the implementation of the National Strategy for Financial Literacy in Latvia aimed at promoting a progressive rise in public financial literacy. Agreement on further cooperation was reached by the Financial and Capital Market Commission (FCMC), Ministry of Education and Science, National Centre for Education, BA School of Business and Finance, Consumer Rights Protection Centre, Association of Commercial Banks of Latvia and Latvian Insurers Association. Text Box: ECE and the United Nations Post 2015 Development Agenda: As a follow up to the UN Millennium Development Goals, global authorities have drafted the Post 2015 Sustainable Development Goals (SDGs) which will channel international activities towards a common set of development priorities and targets over the next 15 years. Economic Citizenship Education relates to these SDGs in the following ways: Goal 3: Provide Quality Education and Lifelong Learning 3d. Increase the number of young and adult women and men with the skills, including technical and vocational, needed for work by x% This is based on the idea that the availability of workers with the right skills is one of the key determinants of success for any business and of capable and professional public bureaucracies and services. Investing in education brings individuals and societies enormous benefits, socially, environmentally and economically. But to realize these benefits, children and adolescents must have access to education and learn from it. 150 While the targets are about access to school and learning, education s aims are wider. As set out in the Convention on the Rights of the Child, education enables children to realize their talents and full potential, earn respect for human rights and prepares them for their role as adults. 151 ECE supplies young people with skills for life, work and earning a livelihood. Goal 10: Ensure Good Governance and Effective Institutions 10c. Increase public participation in political processes and civic engagement at all levels This is based on the idea that: It is through people that we can transform our societies and our economies and form a global partnership... People everywhere want more of a say in how they are governed. Every person can actively participate in realizing the vision for 2030 to in bring about transformational change. 152 ECE can provide the foundation for financially and socially empowered economic citizens to confidently manage their money, take advantage of entrepreneurial opportunities and make a difference in their community Conclusions More than half of countries surveyed either have a financial education strategy in place or currently in draft. Of those that have a strategy or are drafting a strategy, the majority focuses on young people, indicating an increasing awareness of the importance of teaching financial skills at a younger age. Financial education is complemented by other social and livelihood skills in both strategies and curricula by an increasing number of countries. There appears to be a slight preference for complementing finance with social education elements rather than livelihoods elements, which contradicts the findings from the 2013 Children, Youth and Finance Report. This can be attributed to a wider sample size and a more comprehensive understanding of the policies themselves. 150 Brookings Institution (2013) Toward Universal Learning: What Every Child Should Learn. 151 UN General Assembly, Convention on the Rights of the Child, 20 November 1989, United Nations. 152 Ibid, p Children, Youth & Finance: Action for Sustainable Outreach

77 The majority of countries that have integrated elements of ECE, focus on financial education as a stand-alone topic with the combined integration of social and livelihoods education relatively low across all regions. However, a growing proportion of countries are including all three elements of the ECE framework, an encouraging development in the Child and Youth Finance Movement. Integration of financial education into the curriculum appears to be higher in OECD countries. Discrepancies between strategy formation and curriculum integration exist. Many countries with a strategy in place are still going through the lengthy and costly process of implementing this strategy and integrating these skills into the curricula. Conversely, there are also cases where no strategy is in place, but components of ECE have already been integrated. CYFI encourages the formation of a national strategy regardless, in order to better facilitate a coordinated response and reached a maximum amount of children and youth both in and out of the formal school system. 5.3 Financial Inclusion Why it Matters As the number of children and youth increases globally, the consequences of poverty, debt, and unemployment are of increasing importance. Approximately 1 billion children live in poverty and do not have adequate means to support themselves. 153 Despite benefits that financial inclusion could have for youth, 62% of youth in the developing world remain outside the formal financial system. 154 Data indicates that only 37% of youth aged 15 to 24 have an account at a formal financial institution, a number that is drastic lower than that of adults. 155 Based on Findex data, Figure 21 shows that even fewer children between the ages of years have an account at either a bank, credit union or a local institution such as a post office. 156 Figure 21 Children and Youth between Ages with Accounts 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Age 15 Age 16 Age 17 Age 18 Source: Graph created by CYFI (2014) based on Findex Data from Worldbank (2011) 157 No Yes For many young people, certain obstacles stand in the way of setting up accounts at formal financial institutions including ID requirements, financial regulations and the physical distance from bank branches to where they live, work and go to school. Lack of birth certificate or identification papers is a common occurrence for many under the age of Ibid. 154 Demirguc-Kunt, A., Klapper, L. Kumar, A. and Randall, D. (2013. "Findex Notes: The Global Findex Database." World Bank. Web. 5 Nov < 155 Ibid. 156 Findex Raw Data 157 Retrieved online from: Children, Youth & Finance: Action for Sustainable Outreach 77

78 Additionally, 230 million children under the age of five worldwide (around one in three) have never been recorded. 158 These factors need to be taken into consideration when creating polices for financial inclusion of children and youth. The lack of access to formal financial institutions not only prevents children and youth from using accounts for transactions but this also prevents them from saving and borrowing. It is estimated that only 22% of those 15 to 24 years old saved at a formal financial institution and only 9% took a loan from a formal financial institution in These numbers indicate the extent to which lack of access hinders asset building and the creation of sustainable livelihoods for young people. Additionally, exclusion from formal financial institutions may prevent children and youth from receiving other forms of payment such as remittances. Between 15 and 25% of individuals receiving and managing remittances today are under the age of 25, and because the positive impact of remittances on children and youth has shown to be manifold, greater access to these services that can be quite beneficial for young people Financial Inclusion Strategies Dedication to the issue of financial inclusion is seen in the number of countries that committed to the Maya Declaration and the G-20 Financial Inclusion Action Plan, 161 as well as strategies and targets set by individual governments. Increasingly, global and national authorities are grasping the relevance of financial inclusion for young people. In 2010, the lead agency on financial inclusion, the UN Capital Development Fund (UNCDF), in partnership with The MasterCard Foundation and YouthStart, launched a $12.2 million program aimed at increasing access to financial and non-financial services for low-income youth. On a national level, strategies are slowly being created to tackle the issue of access to finance. The World Bank indicates that a comprehensive approach to financial inclusion addresses at least three aspects of financial services and products: access, usage and quality. All are defined by consumers' ability to benefit from their financial options within a reliable (consumer protection) and sustainable (financial capability) framework. A review of how youth are included into financial inclusion polices is given below. Figure 22 National Strategies on Financial Inclusion No Yes No Yes No Yes No Yes No No Africa Americas and the Caribbean Asia & the Pacific Europe and Central Asia Middle East and North Africa Central Asia Source: CYFI (2014) 158 "Current Status Progress." UNICEF STATISTICS. Web. 5 Nov < 159 Demirguc-Kunt, A., Klapper, L. Kumar, A. and Randall, D. (2013). "Findex Notes: The Global Findex Database." World Bank. Web. 5 Nov < 160 Orozco, M (2013). Youth, Migration, Remittances and Development: a needed policy approach, August 12, 2013, briefing presented to the 'Youth Migration: Moving Development Forward', at CSIS 161 For more information see GPFI (2014) 2014 Global Financial Inclusion Action Plan. 2. September Available on: 78 Children, Youth & Finance: Action for Sustainable Outreach

79 First, Figure 22 provides an overview the landscape of general financial inclusion strategies by region. Financial inclusion strategies can be defined as road maps of actions, agreed and defined at the national or sub-national level, and ideally prepared by the public sector in partnership with the private sector, to encourage broad innovation and development in line with FI targets. 162 The figure shows that in our sample, more countries indicate that they do not have a financial inclusion strategy than those admitting to having one. Only Asia and the Pacific come close to an equal divide. This can be explained by the fact that in Asia, countries are employing financial inclusion as an important part of their strategies to achieve inclusive growth, and regional discussions on the issue have also intensified. For example, the Asia Pacific Economic Cooperation (APEC) Finance Ministers process has a dedicated forum looking at financial inclusion issues. 163 In Africa, regional institutions such as the African Development Bank have committed to closing *...+ the poverty reduction gap inadequate financial services for enterprises (particularly micro and small businesses) and households. 164 Government commitment and involvement is crucial. In Latin America, governments from Brazil, Colombia, and Mexico have set financial inclusion as a policy priority and have been able to expand financial access at the country level. Adoption of regulation (e.g., simplified accounts) that demand innovation by the private sector have also contributed to the expansion of financial products. Encouraging government-to-person (G2P) payment services, for example, have helped to move the financial inclusion agenda and have proven to be an opportunity to enlarge the client base of financial intermediaries in the region. 165 National authorities drafting and implementing financial inclusion policies should have a clear definition of their objectives for financial inclusion. This should be able to identify all aspects that are needed, including savings, product availability and the particularities that come with moving from informal finance to formal finance in order to serve clients various needs and problems. Therefore, the assessment in this document also included an analysis of National Committees formed to facilitate greater collaboration between stakeholders on matters of financial literacy and inclusion. Figure 23 National Committees on Financial Capability Africa Americas and the Caribbean Asia & the Pacific Central Asia Europe and Central Asia Middle East and North Africa Source: CYFI (2014) 162 Worldbank. Financial and Private Sector Development. Financial Inclusion, Definition. Retrieved November 30, 2014 on: ~theSitePK:282885,00.html 163 Rillo, A. (2014). Overview of Financial Inclusion in Asia. Financial Inclusion in Asia. Country Surveys. Asian Development Bank Institute Available on: Triki T. & Faye, I. (2013). Financial Inclusion in Africa. DFIs Support to Financial Inclusion in Africa. Available on: Triki T. & Faye, I. (2013). Financial Inclusion in Africa. Lessons from Latin America. Available on: Children, Youth & Finance: Action for Sustainable Outreach 79

80 For the purposes of this document, a National Committee is defined as an organized collection of institutions or individuals which have the mutual objective to advance issues related to financial inclusion, financial capability, or financial literacy at the national level. This collective must, at the very least, consist of actors from the public sector, but should also involve civil society and the private sector. As Figure 23 shows, on first sight, Europe and Central Asia have the most national committees in place, perhaps resonating with the fact that the issues of financial inclusion and education have been on national agendas the longest. However, considering the size of the respective samples per region, in relative terms Africa has the most committees in place and MENA the least. Still, in most regions more than half of countries in our sample have a National Committee in place. As almost 60% of the total sample has a national committee in place, results suggest an increased interest in collaboration on the issues of financial capability. Example of a Collaborative Effort: In Peru, the Superintendencia de Banca, Seguros y AFP (SBS) has been coordinating the efforts of diverse institutions from the public and the private sectors to create synergy and avoid duplication of financial inclusion efforts in the country. As a result, there has been a significant expansion of efforts surrounding these topics. Between the summer of 2013 and the winter of 2014, CYFI held various working meetings to discuss the development of child and youth finance issues in the country. As a result of these meetings between national stakeholders, including SBS, the Ministry of Education, Ministry of Social Development, Ministry of Economy and Finances, the Central Bank of Reserves and the Institute for Peruvian Studies, in November 2013 a process to modify the current national curriculum of the country was started. Figure 24 Financial Inclusion Strategies and their Focus on Youth Countries with a Youth Focus in existing Financial Inclusion Strategy Singapore Papua New Guinea Philippines South Africa Zambia Ethiopia 166 Tanzania Mexico Peru Countries in Progress of including a Youth Focus in their Financial Inclusion Strategy Bhutan Kenya Nigeria Côte d'ivoire 167 Ghana Lebanon Morocco Saudi Arabia Source: CYFI (2014) 166 Ethiopia solely focuses on youth, without an adult focus 167 Cote DÍvoir is solely drafting a youth focus at the moment, without including an adult financial inclusion focus. 80 Children, Youth & Finance: Action for Sustainable Outreach

81 Figure 25 Policies Encouraging under 18 Access Policy in progress Child Policy No Child Policy Policy in progress No Child Focus Child Policy No FI Strategy FI Strategy Source: CYFI (2014) Last, Figure 24 and 25 provide an overview of countries that, within their financial inclusion strategy, focus specifically on a youth segment. In the surveys, CYFI defined this as whether specific attention (a specific focus) is being given on a national level to increase access to formal financial services for those under the age of 18/children in primary or secondary school. Of those countries that have a financial inclusion strategy in place, 8 report to have a specific focus on encouraging access for those under 18, and 4 are in the process of developing this focus in their financial inclusion strategy draft. All countries that do have a focus on children are in Africa, Latin America and Asia, namely: Singapore, Papua New Guinea Philippines, Mexico and Peru, and South Africa, Zambia. For Asia, the explanation may be the same as in the previous section, namely that the focus on financial inclusion overall is quite large. For Africa and Latin America, regions with a high proportionate youth populations, policies tend to be very youth focused. Interestingly, in Ethiopia, there is no general policy for financial inclusion, but only a specific focus to encourage access for the younger segments, indicating that access to finance specifically for youth is considered crucial. The UNCDF initiative, YouthStart, aims to increase access to financial services for low-income youth, under the consideration that youth are disproportionately affected by high unemployment rates. Ethiopia is additionally well advanced in adapting its regulation for young people, which will be further described below. In addition, three MENA countries, namely, Lebanon, Saudi Arabia and Morocco reported to be drafting financial inclusion strategies with both an adult and youth focus indicating that where there is interest in MENA for financial inclusion, youth are automatically taken into account. On the other hand, no European or Latin American countries are specifically focusing on the younger segment. For Europe, this can be explained by the assumption that access to finance for young people is a non-issue. However, the availability of safe, age appropriate financial products is not necessarily a given in these countries. The creation of a financial inclusion strategy would therefore still be beneficial for young people. When comparing Figure 24 with those financial education strategies that have a youth focus, it becomes clear that only 6 countries (Singapore, Philippines, South Africa, Zambia, Ethiopia, Tanzania) that focus on young people in their education strategies, also have a policy in place encouraging access for those under 18. In addition, another 6 (Kenya, Nigeria, Côte d'ivoire, Lebanon, Morocco, Saudi Arabia) are in process of incorporating a child and youth focus in in both of these strategies. This finding indicates that a tandem strategy of financial access and financial education for young people is made by only a small proportion, 10 percent, of the total sample. Comparing the number of financial education strategies to financial inclusion strategies indicates a lack of focus on financial inclusion in general. This reoccurring finding represents a skewed picture of national policies; on the one hand, there is a great focus on creating a savings culture, increasing financial literacy and creating financial capabilities, but on the other hand financial inclusion strategies Children, Youth & Finance: Action for Sustainable Outreach 81

82 (especially for the young), which include a focus on the availability of appropriate products, is given little attention within this picture. Text Box: Best Cases in Financial inclusion Efforts Belarus The National Bank of the Republic of Belarus coordinates activities that were approved by the Joint Action Plan of Government Agencies and Financial Market Participants on Improving Financial Literacy of the population of the Republic of Belarus for Overall, more than 50 participants are involved in the implementation of this Joint Action Plan, including many government agencies, educational institutions, banking association and other industry associations, banks and credit unions, Belarusian Republican Youth Union, private and media companies. The plan received active support from many international institutions (such as IMF, World Bank, AFI) and foreign companies. The main objectives of the plan is to develop rational financial behavior of Belarusian citizens when making decisions about their personal finance and improve the efficiency of protection of their rights as investors and financial consumers. Children and youth represent a crucial target group of the strategy, and a variety of educational materials have been developed. Educational events are also being held throughout the year with the support of the Belarusian Republican Youth Union and other stakeholders in the country. National Bank of Belarus is an official partner of CYFI and has celebrated Global Money Week with a wide range of activities since India The Reserve Bank of India (RBI) attended the CYFI Annual Summit in 2012 and 2013, which have helped build up the case and the urgency to create an environment that is socially and financially inclusive for young people in India. Building on this, the RBI has made a decision to lower the minimum age for a minor to independently open a savings account to 10 years old, marking a progressive way to empower them as economic citizens. This change was specifically highlighted when the Prime Minister Narendra Modi launched the national mission of financial inclusion called Pradhan Mantri's Jan- Dhan Yojana (Prime Minister's People's Wealth Program) which envisions assuring that every Indian has a bank account. Complimentary to this, CYFI is now working with the Indian Banks Association (IBA) in designing a pilot for a SchoolBank in India to be launched in 2015, thus providing a more conducive channel for Indian youngsters to be engaged in the financial system Financial Inclusion and the Regulatory Framework General Obstacles and Opportunities of Financial Regulation The lack of appropriate regulation allowing children and youth to open and handle their own financial products are the biggest barriers to achieve this full financial inclusion. UNCDF points out that the most common barrier for youth across developing countries is a minimum age requirement (generally either 16 or 18 years old) to open and transact a savings account independently. 168 This limits the child s saving activity to saving in the informal sector. Regulated financial institutions are further obligated to strictly comply with the know-your-customer (KYC) rules that require financial institutions to conduct client identity checks and verification. Age restrictions are thus exacerbated by identification requirements, which, as pointed out in the introduction, is most troublesome for young people due to lack of registration or birth certification. Most banks require individuals to provide some type of government-issued identification, typically a birth certificate or a passport, in order to comport with regulations related to combating the financing of terrorism or for money laundering. In sum, even though these requirements related to the management of accounts and consumer protection are meant to guard against abuse and fraud, for youth they often represent obstacles to financial inclusion. An adapted regulatory framework is needed to overcome such barriers, particularly in the developing world. Financial markets have specific features: unlike other markets, issues such as consumer protection, information management (especially when it comes to children), and (financial) education is relevant; management fees and balance requirements may put an additional burden on consumers and increase the prices of products. In addition, in developing economies, authorities may deal with the task of fostering the supply-side of financial services to remote areas, the need to reach 168 UNCDF (2012). Policy Opportunities and Constraints to Access Youth Financial Services, p Children, Youth & Finance: Action for Sustainable Outreach

83 vulnerable groups, and the low levels of financial inclusion among adults, which in the long term hampers the possibilities of children for inclusion. Countries such as the Philippines where children can open savings accounts at formal financial institutions from the age of 7 and Uruguay have begun to adapt policies aimed at including youth in the formal financial system. Uruguay, for example, lowered the minimum age for independent account opening to 12 and 14 for girls and boys respectively in In Mongolia, although the contractual age is set at 16, XacBank recognized a need among youth for independent accounts, examined the civil code and found that youth ages 14 and over could enter into petty domestic transactions. XacBank then determined that opening and closing a bank account and conducting basic transactions fell within this definition and as a result XacBank became the first in the country to offer savings accounts to 14-year-olds. 170 Finally, in Ethiopia, barristers argued that since youth ages 14 and older could enter into light employment labor contracts under applicable labor law, they could also enter into contracts to open and manage savings accounts. Similarly, Ethiopia created an exception to its standard minimum age requirement for opening an account for youth under 18 who could demonstrate that they were working. 171 To contribute to this body of research CYFI conducted an analysis of the diverse financial regulatory landscape for young people in Latin America. The results are summarized below Latin America and the Financial Regulatory Framework for Youth Latin America is a region of contrasts and deep inequality. With a Gini coefficient of it remains one of the most unequal societies worldwide. 172 Poverty in rural areas doubles that in urban areas and extreme poverty among rural inhabitants is quadruple that among their urban counterparts. In addition, Latin America is a young region where financial inclusion does matter. Children under 18 account for more than 217 million, which represents 37% of the total population; by 2040 this will still be above 25% 173. Children and youth are overrepresented among the poor: in 2011, 40.5% of children and youth lived under poverty line; this is 12 percent above the total poverty rate in the region. 174 Adequate financial inclusion for children and adolescents can be seen as a tool to fight against these scourges, however without regulatory reform and corresponding enforcement mechanisms, financial inclusion may remain an uncompleted task of policy makers and stakeholders in the financial sector. During the first semester of 2014, a survey was disseminated among the main regulatory bodies of the region, and information about policies on child financial inclusion was gathered from 14 Latin American countries. 175 This summary is part of a paper that will explore the landscape of regulation and policies that may enhance child and youth financial inclusion in the region by comparing the situation in Latin America to best practices worldwide, giving policy recommendations stemming from a cross-country analysis. 176 In this short summary report, the main trends and findings on the closed ended questions of the research will be shared which include information on policies to promote access to financial services; minimum age to open a bank account; access to basic financial services such as remittances and money transfers; and children rights protection in financial regulation. 169 Aldebot-Green, A. & Sprague, S. (2014). Regulatory Environments For Youth Savings In The Developing World, New America Foundation. Available on: Ibid 171 Ibid 172 ECLAC, Ibid 174 ECLAC, Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Paraguay, Peru and the British overseas territory of the British Virgin Islands. 176 The full summary report was prepared by Sofía Ortega Tineo and Floor Knoote of Child and Youth Finance International and Nohora Forero from Banco de la República. It can be found on: Children, Youth & Finance: Action for Sustainable Outreach 83

84 Policies and Regulations to promote the access to financial products for children and youth The first part of the survey looked into whether financial regulatory bodies in the Latin American region had any policy in place promoting the access to financial products to children and youth. Eighty percent of respondents (11 countries) answered that in their domestic context there is no specific law or policy in place to do so as shown in Figure 26. Among the 20% of respondents that reported to currently be undertaking such efforts, were Mexico, Peru and El Salvador. In El Salvador, however, efforts are not part of a formal financial inclusion strategy. Figure 26 Countries with a specific policy or law PROMOTING the access to financial products for children and youth It was further explored whether the law similarly allows young people to open 20% and operate on their accounts. The case of El Salvador is particularly interesting, as children from the age of 16 are explicitly mentioned in the law and there is clear reference to the provision of financial services for them. The law clearly indicates that minors who have reached 16 years old can open and manage savings accounts and acquire bonds. 177 The cases of Mexico and Peru, are somewhat different in the sense that in spite of allowing children and youth to be the account holders with no specific age restriction in the case of Mexico and with a restriction for those under the age of 16 in the case of Peru they have no legal capacity to open or operate the bank account autonomously. In the case of Mexico, the law states that Savings accounts No may be opened on behalf of minors, without prejudice that, based on the common legislation, minors may celebrate * + deposits of money. In all cases, only the legal guardian of the holder will be able to manage the funds." 178 Source: CYFI (2014) 80% In the case of Peru, legislation gives individuals over the age of 16 with the previous authorization of either of the parents or legal tutor the ability to act in full legal capacity, in accordance with standing regulations, and as holders of electronic money. It is important to note that these latter two countries are in the process of developing a national strategy for financial inclusion, which points out the relation to their existing policies on promoting access to financial products for children and youth. The remaining 80 % of responses indicates the lack of such policies on the ability of individuals under the age of 18 to acquire legal obligations, suggesting that children and youth are not often regarded as a segment of autonomous actors, let alone with financial needs and ways to cover them. In some of these countries, children and youth have been given legal status to open and operate savings account with certain constraints. While Colombia does not explicitly promote financial inclusion for under-eighteens, interestingly, the law recognizes that young adults (between 14 and 18 years old) can acquire certain obligations, among them, administer a savings account independently, where individuals under the age of 14 can have access, but not operate the account. In the case of Costa Rica, the Civil Code states that individuals under legal age lack the faculties to grant powers (authorizations), to enter into a credit or to arrange and/or to encumber assets to their name by their own decision. However, minors are able to administer and to decide upon the goods that they may have acquired through their own work. 179 Nevertheless, this faculty of administering and deciding upon goods is limited as established in the civil code. In that sense, where the civil code is the general rule minors cannot be compromised in obligations, nor can they celebrate business transactions, particularly excluding those of a commercial nature. 177Law of Banks. Art. 56 Letter G. Available at: Law for Credit Institutions, Chapter II, Art.59. Available at: Labor Code, Art. 47; available at: and Code for Childhood and Adolescence Art. 86 available at: 84 Children, Youth & Finance: Action for Sustainable Outreach

85 Children and Youth with Access to Alternative Financial Services Figure 27 Children and Youth with Access to Money Transfers 13% No 47% Not applicable 33% Yes 7% No answer Source: CYFI (2014) Money Transfer Services Remittances and money transfers have come to play an important role in the financial inclusion developments in the region. According to the World Bank Group the total amount of remittances received in Latin America and the Caribbean in 2013 were approximately $61 Billion USD 180. Being an important part of the financial landscape of the region, this survey question aims to offer a better understanding on access of children and youth to these services. Money transfers in this case include deposits, withdrawals and movements between accounts. Figure 27 indicates that in five of the respondent countries (33%) children and youth have access to money transfer transactions. It is important to highlight that, often, children and youth are only allowed to perform one kind of transaction, which is in most cases deposits. Nearly half of respondents reported that children and youth do not have access to money transactions within their jurisdiction. In this group it is important to differentiate between cases in which children and youth do not have any access to money transfer services, as in the case of Bolivia, British Virgin Islands, Guatemala and Paraguay, and a second group in which some restrictions apply, as it is the case of Honduras and Mexico. The first group is characterized by regulations that do not allow individuals under the age of 18 to acquire any legal commitment, consequently preventing them from participating in the formal financial system under any legal figure. The second group presents some complexities that make it worthwhile to illustrate the cases with pieces of their corresponding legislation. In the case of Mexico, children and youth are allowed and encouraged to open savings accounts, however, the legislation establishes that the child can only perform deposits to an account under his/her own name. In Honduras, children and youth have access to saving products, with no age limitations. This is due to the fact that the legislation defines the financial user as the natural or legal person who acquires or utilizes a service or product provided by a supervised institution. This concept is not discriminatory on age. 181 However, children and youth are not allowed to perform any transaction without the physical presence of either the parents or legal tutor. 180 World Bank, Migration and Remittance Flows: Recent Trends and Outlook , Oct. 2013, National Commission on Banks and Insurance of Honduras (CNBS)."Norms for the strengthening of transparency, financial culture, and attention to the financial user in the institutions supervised" Resolution GE No.1768/ Art. 3 Clause 11 Children, Youth & Finance: Action for Sustainable Outreach 85

86 Remittances Transfer Services It is notable than in more than 50% of the countries that responded to this survey children and youth do not have access to remittances transfer services, as shown in Figure 28. Again, the main reason is the legal capacity of those under the age of 18. A few cases that stand out are highlighted. In the British Virgin Islands, individuals under the age of 18 do not have access to money transfers, but they can be the beneficiaries of remittances transfer services, with no age limitation. The financial authority does not report on any particular piece of legislation to illustrate the point. Conversely, in the cases of Costa Rica and Peru children and youth are allowed to perform money transfer transactions, but are unable to receive remittances. In Costa Rica, money transfers are possible only through the use of a savings account (deposits only). Regulations establishing legal majority of young people, prevents them from being able to perform any other act of financial nature. In Peru, as mentioned previously, youth from the age of 16 have access to electronic money transactions and children under that age can do so with the presence of an adult. However, to be the beneficiary of remittances services, any individual under the age of 18 needs to be accompanied by his/her parents or legal tutor. The Peruvian legislation indicates that individuals under 18 do not have full capacity to exercise their civil rights. Figure 28 Access to Remittance Transfer Services No 27% Not applicable Yes No answer 7% 13% 53% Source: CYFI (2014) From those 14 countries that replied to the survey only three reported that their regulation allows children and youth to perform both remittances and money transfers. These countries are Brazil, Colombia and El Salvador. In Brazil the regulator reports that Remittances are regulated by Law 4131 of 09/03/1962[182], which does not specifically mention this matter. The purchase of currencies of up to USD $3,000 does not require a form with the signature of the buyer or the seller, and therefore does not require consent from a legal tutor. The regulation also allows money transfer transactions for those under the age of 18 provided that some requirements are met, such as the minor being accompanied by his or her parents or legal tutor, or when a statement of emancipation has been issued no earlier than at the age of 16. Contrasting is the case of Colombia, in which the regulation recognizes that young adults can contract some legal obligations. Therefore, children from the age of 14 are able to perform money transfer transactions and be the beneficiaries of remittances transfer services when in company of an adult. The case of El Salvador is of particular interest due to the fact that from the age of 16 youth can manage his or her own savings accounts autonomously. The regulator reports that in most situations a national identity card is needed to receive remittances. However, if the individual beneficiary of the remittance has access to a savings account even if he/she is under age it is possible to receive the service through such an instrument. 182 Available at: 86 Children, Youth & Finance: Action for Sustainable Outreach

87 The Protection of Children s Rights within the Financial System National initiatives on financial inclusion in the region often have a strong focus on consumer protection. When dealing with minors, these issues need to be approached in a way in which the particular needs of this group are explicitly taken into account. Figure 29 indicates that 73% of respondents reported that there are no standing policies or laws in place that regulate the protection of children s rights within the financial system. Twenty-seven percent reports that such policies or laws are in place. However, it becomes clear from the analysis of the legislation that in most of the cases, the law applies to all people participating in the financial system. This means that children and youth participating in the formal financial system are protected by default by established consumer protection laws, without a specific reference. No countries reported having specific regulations in place to protect children s rights within the financial system. Costa Rica stands outs, since even though there is not a specific mention of children and youth in the consumer protection law, the child protection law does make a reference to child and youth finance issues. Figure 29 Policy or law regulating the PROTECTION of children s rights within the financial system No Yes 27% 73% Source: CYFI (2014) Financial Services and the Post 2015 Development Agenda: As a follow up to the UN Millennium Development Goals, global authorities have drafted the Post 2015 Sustainable Development Goals (SDGs) which will channel international activities towards a common set of development priorities and targets over the next 15 years. Economic Citizenship Education relates to these SDGs in the following ways: Goal 1: End Poverty Goal 1b. Increase by x% the share of women and men, communities, and businesses with property, and other assets. This is based on the idea that people in poverty need the tools to cope with adverse and potentially devastating shocks. To address these challenges, one target focuses on resilience. Resilience enables people to move from the fringes of survival to making long-term investments in their own future through education, better health, increased savings and protection for their most valuable physical assets such as home, property and means of livelihood. 183 Child and Youth Friendly Banking Products and Regulatory policies ensure that young people are able to take advantage of appropriate financial services to build an asset base and build a secure future for themselves. Goal 8: Create Jobs, Sustainable Livelihoods, and Equitable Growth Goal 8c. Strengthen productive capacity by providing universal access to financial services This is based on the idea that Financial services are critical to the growth of business, but also raise the income of individuals. When people have the means to save and invest or get insurance, they can raise their incomes by at least 20 per cent. We need to ensure that more people have access to financial services, to make the most of their own resources. 184 Goal 2: Empower Girls and Women and Achieve Gender Equality 2c. Ensure equal right of women to own and inherit property, sign a contract, register a business and open a bank account This is based on the idea that gender equality transforms not only households but societies. When women can decide how to spend their household s money, they tend to invest more in their children. 185 The socio-economic empowerment of women should begin at an early age as girls need to be exposed to educational programming and financial services designed for their benefit. 183 United Nations (2013). A New Global Partnership: Eradicate Poverty And Transform Economies Through Sustainable development. The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda 184 United Nations (2013) A New Global Partnership: Eradicate Poverty And Transform Economies Through Sustainabledevelopment. The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda p World Bank, World Development Report. Gender Equality and Development. Available on: ontentmdk: ~menupk: ~pagepk: ~pipk: ~thesitepk: ,00. Children, Youth & Finance: Action for Sustainable Outreach 87

88 Goal 12 Create a Global Enabling Environment and Catalyze Long-Term Finance 12b. Implement reforms to ensure stability of the global financial system This is based on the idea that Following the financial crisis, there is more concern that the international financial architecture must be reformed, and agreed regulatory reforms implemented consistently, to ensure global financial stability. 186 Financial stability and financial responsibility begin with the economic decisions of individuals and young people should understand that the skills that they develop at an early age can have a positive impact on not only their lives but also those in the community and in society at large Conclusions: A small proportion of countries have a specific policy in place encouraging access to finance for young people. This shows a significant change from the financial education strategies described in the previous section which were much more likely to have an explicit youth focus. The link between financial inclusion and financial education is made by some authorities, but not significantly so. Comparing the number of financial education strategies with financial inclusion strategies indicates a significant lack of focus on financial inclusion for both adults and young people. This can be attributed to the fact that many high income countries already enjoy a high percentage of their population whom are banked, thus making a financial inclusion strategy redundant. Most countries with high financial inclusion rates still consider a financial literacy strategy to be of national importance. Many national authorities do collaborate with other stakeholders on the issues of financial capability, including financial service providers as well as those responsible for delivering financial education, such as youth serving organizations. These committees may be the best platform to link the issues of access and education. The most common barrier for youth across developing countries to access financial services is a minimum age requirement and ID requirements. Some benchmark examples on financial regulation that specifically targets those under 18 can be found, such as in Ethiopia, Philippines and Uruguay. Initial analysis indicates that in the Latin American region minors are not a common target of regulation or policies that allows them to be financially included in an autonomous way. Moreover, national policies on financial inclusion do not necessarily resonate in the regulation which may hinder or allow this inclusion for young people. Some regulations are stronger than others in allowing access to money transactions and remittances for children and adolescents. Nonetheless, these laws appear less restrictive than those setting conditions for opening and operating savings accounts. Protecting people s rights in financial markets becomes more relevant when referring to minors. However, the results of the survey conducted reveal poor results in this sense. While the report on the regulatory landscape in Latin America is useful, additional research into the comparative regulatory landscapes for young people in all regions is necessary. html. p United Nations (2013), A New Global Partnership: Eradicate Poverty And Transform Economies Through Sustainabledevelopment. The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda p Children, Youth & Finance: Action for Sustainable Outreach

89 5.4 Building Sustainable Livelihoods for Youth Introduction Despite the increasing attention that has been given by governments to the development of entrepreneurial and employability skills for children and youth, evidence indicates that youth unemployment still stands as a leading global problem today. In OECD countries the unemployment rate for youth stands at 15.5% 187 and the global unemployment rate was estimated at 12.6% in Moreover, in 2013, about 225 million youth, or 20% of all youth in the developing world, were idle or not in education, employment or training (NEET). 189 This trend of high youth unemployment will continue for the foreseeable future, requiring a multifaceted global response until it is adequately addressed. An important contributor to the problem is a mismatch in skills and vocational opportunities, which only exacerbates the market crisis and makes solutions to the youth employment crisis more difficult to find and more time consuming to implement. 190 In order to combat this lack of opportunity and waste of potential, initiatives are required that specifically target youth and equip them with the skills they need to survive and thrive in the job market. Moreover, it is noted by the ILO that such long spells of unemployment and discouragement early on in a person s career also damage long-term prospects, as professional and social skills erode and valuable on-the-job experience is not built up. 191 Conclusively, unless immediate and vigorous action is taken, the global community confronts the grim legacy of a lost generation. 192 Increasing the entrepreneurial and employability skills of children and youth in order to help them achieve sustainable livelihoods is an important aspect of financial education and inclusion. According to UNICEF, livelihood skills can support children with income generation and may include: technical or vocational skills (carpentry, sewing, computer programming), research skills, interview skills, business management skills, entrepreneurial skills, and skills in managing money. 193 These skills can bolster their employability when they seek work and are entering the job market. This chapter will assess the current policies and approaches being taken to address youth livelihoods, starting with the reason why this focus is crucial, moving to the global/multilateral level, the regional level and lastly to a national level. These insights will then be followed by a brief discussion on suggested policy change. Justification High youth unemployment rates are a cause for concern due to micro and macro level reasons. The problems that are prevalent as a result of unemployed youth have a lasting effect reiterating the fact that this is not a short term problem. Studies indicate that experiencing unemployment earlier in life is a likely indicator of unemployment occurring later in life as well. Kawaguchi and Murao indicated graduating from a school during a time of adverse economic conditions has a persistent, harmful effect on workers' subsequent employment opportunities. 194 Moreover, depending on the labor market conditions of the country, research has shown that those who experience unemployment at a young age are initially likely to earn less and less likely to work than their peers Not only does unemployment hinder future employment opportunities, it also has a negative impact on an individual s psychological health. A paper on the 187 OECD (2014). OECD Harmonised Unemployment Rates News Release: December Retrieved from: Feb14.pdf 188 ILO. (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 189 UN Youth. Youth and Education. Retrieved from: ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 191 ILO (2013). Global Employment Trends Retrieved from: publ/documents/publication/wcms_ pdf 192 ILO (2012). The Youth Employment Crisis: A Call for Action. Retrieved from: relconf/documents/meetingdocument/wcms_ pdf 193 UNICEF. Life Skills. Retrieved from: Kawaguchi, D. and Murao, T. (2014). Labor Market Institutions and Long-Term Effects of Youth Unemployment. IZA: Discussion Paper Series. IZA. Retrieved from: Kahn, L. B. (2010). The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy. Labour Economics, Vol. 17, No. 2, pp Von Wachter, T., Song, J., and Manchester, J. (2009). Long-Term Earnings Losses Due to Mass Layoffs During the 1982 Recession: An Analysis Using U.S. Administrative Data from 1974 to 2004 (unpublished; New York: Columbia University). Children, Youth & Finance: Action for Sustainable Outreach 89

90 psychological impacts of unemployment states that life satisfaction is lower not only for the current unemployed (relative to the employed), but also for those with higher levels of past unemployment. 197 Not only do youth unemployment rates effect the youth in question but they also have a large effect on society as a whole. It is claimed that the underutilization of young people in the labor market can result in a vicious circle of intergenerational poverty and social exclusion and that lack of employment opportunities may trigger violence and juvenile delinquency. 198 Additionally, Hartnagel indicated that there might be a link between the state of the labor market and the impact it has on crime and cannabis use during the transition from school to work. 199 The results of the study concluded that there is some overlap in the risk factors for crime and cannabis use, there are also differing causal patterns that suggest minor crime may represent a response to temporary labor market problems whereas cannabis use is a more enduring behavior pattern. 200 Therefore, the problem of youth unemployment can be adverse for the growth and benefit of society as a whole. Global Livelihoods Policies Improvements in the labor market can be achieved through a collaborative and comprehensive approach taken on a large, global scale. World leaders and economists understand the gravity of this issue and are committed to implementing policies to overcome the large deficit in employment opportunities. Manifestations of such commitments can be seen through programs developed by international organizations that aim to curb youth unemployment and foster youth entrepreneurialism. During an ILO Conference in 2012, The youth employment crisis: A call for action was adopted by member states of the ILO. 201 In addition, UNESCO along with the Government of the Republic of Korea has launched a Technical Vocational Education and Training project in a few countries (Botswana, DR Congo, Malawi, Namibia, and Zambia) within the Southern African Development Community (SADC), which is known as Better Education for Africa s Rise (BEAR). BEAR aims to improve the knowledge base and capacity of TVET systems to develop evidencebased TVET policies within these countries. 202 Similarly, through the financial support of the Barclays Building Young Futures project, UNICEF's Child Protection section has partnered with the Punjab Vocational Training Council (PVTC), which manages 174 Vocational Training Institutes across the province to create a vocational training program for adolescents in Punjab, Pakistan. 203 UNCTAD, has expanded its Empretec program to a youth focused outlook by trying to address some of the most common challenges affecting young entrepreneurs and Empretec centres have been developed and rolled out for youth-specific initiatives. 204 Additionally, the UN-Habitat Urban Youth Fund, which has been established in 172 cities and 63 countries in Africa, Asia and the Pacific, Latin America, and the Caribbean, 205 provides grants and support to youth entrepreneurs in developing countries. Around 30 organizations are selected yearly to receive a grant up to 25,000 USD and capacity building support throughout the duration of the project. 206 The efforts of these international organizations are commendable as they are creating context specific programs that aim to curb youth unemployment on a larger scale. The World Bank in particular has undertaken significant action to eradicate youth unemployment and help youth develop necessary livelihoods skills. One example is the Stepping Up Skills Project in Guinea, which aim to increase youth employment through professional training programs, Education to Employment programs and by providing institutional support and regulatory frameworks E. Clark, A., Georgellis, Y. and Sanfey, P. (2001). Scarring: The Psychological Impact of Past Unemployment. Economica New Series, Vol. 68, No Retrieved from: Morsy, H. (2012). Scarred Generation. Finance and Development. Retrieved from: Hartnagel, T. (1997). Crime, Illegal Drug Use and Social Control in the Transition from School to Work. Retrieved from: Ibid. 201 ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 202 United Nations Educational, Scientific and Cultural Organization. Better Education for Africa's Rise (BEAR). Retrieved from: UNICEF (2014). Passion into Profession. Retrieved from: UNCTAD (2014). Entrepreneurship and Productive Capacity-building: Creating Jobs through Enterprise Development. Retrieved from: Urban Youth Fund. Retrieved from: Ibid. 207 World Bank (2014). Projects & Operations. Projects: Stepping Up Skills Project The World Bank. Retrieved from: 90 Children, Youth & Finance: Action for Sustainable Outreach

91 Aside from policies taken by multilateral institutions, global corporations are also involved in increasing youth employment and entrepreneurship. Accenture, for example, created a program known as Skills to Succeed in 2010, along with committing $100,000,000, in order to help equip 250,000 people around the world with the skills to get a job or build a business by In 2011 they furthered this project by partnering with other multilateral organizations such as NetHope, International Federation of Red Cross (IFRC), Save the Children, Plan International, and Youth Business International (including its member organizations, such as Canadian Youth Business Foundation and Conexao) to expand the reach of their skill building programs. 209 Similarly, many other multinational corporations, along with government bodies and NGOs, such as Ernest and Young, 210 have shown their commitment to combatting youth unemployment by creating job opportunities within their companies, through employing their expertise and by donating to various causes Regional Approaches to Sustainable Livelihoods Asia In Asia, the youth unemployment rate is relatively low when compared to other developing regions. In 2012, youth employment was at its lowest in East Asia (9.5 per cent) and South Asia (9.3 per cent). 211 A possible related factor is Asia s low youth school enrollment rate (at 55.5% estimated by UNICEF), 212 indicating the presence of a high number of out-of-school children. These out-of-school children enter into the job market at an early age and though the unemployment level may be low it is the working poverty levels in these scenarios that provide a clearer picture of the difficulties that youth face in the labor market. For example in India, the working poverty rate in 2010 was 33.7 per cent of the US$1.25 poverty level), 213 indicating that it is not necessarily unemployment that creates the problem but working conditions (low wages) that push these youth workers under the poverty line. The cycle of poverty makes it necessary for the youth in the region to seek employment at a young age and the sub-standard working conditions make it difficult the youth to ever escape this poverty cycle. These factors together, render the need for livelihoods education very important in Asia.. It is essential that young children are provided with the tools to overcome their vulnerability in the labor market and learn their labor rights, so that they are capable of creating a sustainable livelihood for themselves. Many multilateral initiatives are being taken in the region to ensure the protection of the youth labor market. In late 2012, The United Nations introduced, in cooperation with the United Nations Development Group (UNDG) Asia-Pacific, the "RCM-UNDG Asia-Pacific Thematic Working Group on Youth. 214 This group is designed to aid the member states in Asia with implementing international agreements on youth, this includes the 2012 Secretary-General s Five-Year Action Agenda, on employment, entrepreneurship, political inclusion, citizenship and protection of rights, and education, including on sexual and reproductive health. 215 Additionally, national bodies are implementing policies and practices to protect youth labor and encourage entrepreneurship. More specifically, in India, youth training and employment were identified as a key concern in the National Youth Policy. The Government of India believes in helping the youth develop skills that will improve their employability and that this can be achieved by measures such as quality improvements in formal education, vocational education, and specialized skills training and by ensuring sufficient income-generation. 216 Similarly, the Government of Indonesia established the Indonesia Youth Employment Network in This initiative, taken along with the ILO, involves senior policymakers addressing problems associated with youth employment, including the transition from school to work in formal jobs. 217 Though sporadic, it is evident that measures are taken to improve not only youth 208 Clinton Foundation. Skills to Succeed. Retrieved from: Ibid. 210 EY. Our Commitment to Youth Unemployment. Retrieved from: ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 212 UNICEF. Database. Retrieved from: ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 214 RCM/UNDG Asia-Pacific Thematic Working Group on Youth (2013). Social Development in Asia and the Pacific. Retrieved from: UN (2012). The Secretary-General s Five-Year Action Agenda. Retrieved from: Ministry of Youth Affairs & Sports- Government of India. National Youth Policy Youth Policy. Retrieved from: Ibid. Children, Youth & Finance: Action for Sustainable Outreach 91

92 unemployment, but also youth employment conditions, which is essential to reducing the vulnerability of youth workers in Asia. Latin America The youth unemployment rate in Latin America and the Caribbean stood at 12.9 in According to the ILO, economic growth in the region has not been strong enough in recent years to improve the employment outlook for young people trapped by unemployment and informality. 219 Youth face great difficulty in finding sustainable employment and suffer from poor working conditions. Young people face more difficultly in entering the labor market than adults, as the youth unemployment rate remains twice as high as the overall rate and three times that of adults. 220 A large number of the unemployed youth head into the informal work sector where work conditions are less than ideal and they are left vulnerable to exploitation. An aspect of particular concern in Latin America and the Caribbean is the number of NEETs (not in employment, education or training) which stands at 21 million. 221 This number is troublesome because these youths are not engaging in any activities that could improve their employability, leaving them at risk of economic exclusion. In order to combat the problem of youth unemployment, measures have been taken to improve both employability and workers rights of youth in Latin America and the Caribbean. In Brazil, Pedagogia Empreendedora provides an introduction to entrepreneurship in formal education curricula, in 126 different cities, involving 340,000 students. 222 The aim of this program is to create a culture of entrepreneurship and it focuses on individual imagination and the definition of dreams, with teachers playing the facilitator s role of a creative thinking process. 223 Similarly, the Colombia Joven Emprende was developed in 2013 on as a part of the presidential program focused specifically on cultivating youth entrepreneurship in the country. This program has as its main objective to inform young entrepreneurs about the different support opportunities the Colombian government offers. Moreover, on a regional level the Central American Integration System (SICA) has put together an initiative that aims to boost youth entrepreneurship in the sub-region. The initiative counts with the technical support of the Colombian Government and the financial support of Taiwan. 224 This indicates that, along with national efforts, multinational efforts are being taken to eradicate youth unemployment but also encourage youth entrepreneurship. Africa Africa s youth unemployment rate is relatively low at 11.8 percent in However, this rate on its own does not clearly depict the youth unemployment conditions, specifically due to the fact that many children and youth in the region are not registered at birth. 226 Therefore, the data gathered on rates of unemployment, literacy, poverty, etc. in the region can be misleading. Additionally, low unemployment rates in Africa are typically coupled with high levels of poverty. 227 These numbers are only projected to increase as the youth population in Africa continues to rise. 228 Moreover, it must be noted that the youth unemployment rate on a regional level is drastically lower than the youth unemployment rate in some countries of the region, for example, the youth unemployment rate in South Africa is 52%, whereas the unemployment rate in Nigeria is 14%. 229 Therefore, generalizing the youth unemployment rates on a regional level masks significant discrepancies between national youth unemployment rates. Additionally, literacy, which is estimated at only 70 percent for youth ages 15-24, 230 further exacerbates youth unemployment as youth lack basic functional skills needed 218 ILO (2013). Global Employment Trends for Youth dcomm/documents/publication/wcms_ pdf>. 219 Youth Employment in Latin America (2014). Unemployment and Informality Beset Latin American Youth. Retrieved from: Ibid. 221 Ibid. 222 UNCTAD (2014). Entrepreneurship and Productive Capacity-building: Creating Jobs through Enterprise Development. Retrieved from: Ibid. 224 Pulso Social (2014). Colombia y Taiwán apoyan la nueva apuesta por el emprendimiento en Centroamérica. Retrieved from: ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 226 The percentage of children under age 5 whose births were registered stands at 49% World Bank. Completeness of birth registration (%). Data. Retrieved from: Ibid. 228 Ibid. 229 World Bank. Unemployment, Youth Total (% of Total Labor Force Ages 15-24) (modeled ILO Estimate). Data. Retrieved from: World Bank. Literacy rate, youth total (% of people ages 15-24). Data. Retrieved from: 92 Children, Youth & Finance: Action for Sustainable Outreach

93 to boost their employability. Those youths that do receive education face the dilemma of a mismatch between the skills acquired in the education system and those required by the economy. 231 Leaders in the region responded to the situation by declaring the African Youth Decade, a time period in which youth development will be a primary focus. 232 To foster youth employment and entrepreneurship on a regional level, The Youth Entrepreneurship Facility (YEF), a partnership between the Africa Commission, the Youth Employment Network (YEN), and the International Labour Organization (ILO), was developed to enable the youth to turn their energy and ideas into business opportunities. 233 The YEF focuses on five main programming areas: 1) promoting a culture of entrepreneurship, 2) including entrepreneurship education in schools, 3) offering access to business development services, 4) providing access to financial backing and 5) supporting youth organizations and endorsing policies for youth entrepreneurship development that create substantial results. 234 Similarly, on a national scale, countries are focusing on developing the skills of the youth workforce in order to increase their opportunities. For example, in Kenya, the Kenya Micro and Small Enterprise Training and Technology Project (MSETTP), launched in 1994, includes the Jua Kali Voucher Program. This program is a part of the training fund component, which is the largest component of the MSETTP. 235 The Jua Kali Voucher Program in essence subsidizes training programs in relation to the Jua Kali sector and many of the unemployed beneficiaries of this program are the youth. These vouchers are intended to empower recipients with the capacity to buy training in the open market, and thereby, promote competition between public and private providers of training and the efficient delivery of training services. 236 Similar training funds have been established in Cote d Ivoire, Togo, Mali and Madagascar with help from the World Bank. 237 These efforts, along with several others, must continue to resolve youth unemployment in the region. MENA In the MENA region, the youth unemployment rate is at its highest at 28.3 percent in With the ongoing social and political upheaval that the region is undergoing, this rate is likely to continue to rise. The disparities in education level, gender and location make the challenges that each segment faces unique, and each segment encounters different hurdles in their entry into the labor market. For example, the problems that youth in Egypt encounter vary greatly from those that the youth encounter in Bahrain. This is also due to available resources for youth to develop their skills and abilities. 239 For this reason it is difficult to generalize and create a holistic framework to tackle youth unemployment for the whole region, as each country has its own unique sets of difficulties and restrictions. Moreover, despite the higher levels of education in certain areas, youth continues to face issues in securing a job. It is clear that young people face difficulties in finding a job because of the mismatch between education and training outcomes and labor market requirements. 240 Within the region, primary education is universal or nearly universal, except for pockets of populations in Yemen, Morocco, Iraq, and Egypt, 241 this indicates an overall increase in literacy levels. Regardless of these strides made in eradicating illiteracy, the MENA countries need to focus on improving education standards, and specially develop curriculum to equip the youth to meet the demands of the labor market. Furthermore, educational systems have largely been rudimentary and geared toward preparing students to serve in the public sector, which used to be but is no longer the primary employer of new graduates African Development Bank (2011). Enhancing Capacity for Youth Employment in Africa Some Emerging Lessons. Retrieved from: Capacity Dev Brief_Africa Capacity Dev Brief.pdf 232 Ighobor, K. (2013). Africa's Youth: A "ticking Time Bomb" or an Opportunity? Africa Renewal Online. UN News Center. Retrieved from: s-youth- ticking-time-bomb -or-opportunity 233 Yef Africa: Youth Entrepreneurship Facility. Who We Are. Retrieved from: Ibid. 235 Adams, A. V. Assessment of the Jua Kali Pilot Voucher Program. World Bank. Retrieved from: < 236 Ibid. 237 Ibid. 238 ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 239 Roudi, F. YOUTH POPULATION AND EMPLOYMENT IN THE MIDDLE EAST AND NORTH AFRICA: OPPORTUNITY OR CHALLENGE? UN. UN: Department of Economic and Social Affairs. Retrieved from: ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 241 Roudi, F. YOUTH POPULATION AND EMPLOYMENT IN THE MIDDLE EAST AND NORTH AFRICA: OPPORTUNITY OR CHALLENGE? UN. UN: Department of Economic and Social Affairs. Retrieved from: Ibid. Children, Youth & Finance: Action for Sustainable Outreach 93

94 Steps are being taken on a regional and national level to overcome youth unemployment. Education For Employment s (EFE) is a non-profit group that is dedicated to providing Arab youth with the skills, training and resources they need to secure jobs. EFE has trained 25,300 youth in professional, technical, job-search and entrepreneurship skills, 243 they have placed 6,830 youths in jobs and 60 percent of EFE s 2014 graduates are young women. 244 Additionally, the Work4Youth project, a partnership between the ILO Youth Employment Programme and the MasterCard Foundation, is focusing on three countries in the MENA region: Egypt, Jordan and Tunisia, to promote decent work opportunities for young men and women through knowledge and action. 245 Regional and national steps are being taken to overcome youth unemployment, however, the MENA region is in need of major policies changes and structural changes in the market in order to provide youth with viable opportunities. Europe The rate of youth unemployment in Europe stands at 22.9 percent as of 2014, 246 which is double that of the overall unemployment rate in the region. Furthermore, 5.6 million young people are unemployed across Europe, and a total of 7.5 million are neither being educated nor are they working. 247 This highlights a great problem for the labor market in the European Union where a large amount of the workforce is underutilized. The 2008 economic crisis only served to exacerbate this problem and it has become more crucial for policymakers to combat youth unemployment. The most concerning problem in Europe is the number of NEETs, which stood at 13.1 percent in This is not only problematic for the youth population but also for the economies of the region as it is costly for nations to support such a high number of unemployed individuals, in 2011 NEETs cost EU Member States 153 billion in terms of lost tax contributions. 249 The reduction of NEETs seems difficult as the likelihood of a young person securing a job is low, as only 29.7% of those aged and unemployed in 2010 found a job in a daunting precedent. The region also faces is a skills mismatch, which indicates that the standard of education is not sufficient to equip youth with skills that boost chances of employment. In order to combat youth unemployment several initiatives are being taken by the regional bodies. The 2013 Youth Employment Initiative, a further development of the Youth Employment Package of 2012, aims to support particularly young people not in education, employment or training in regions with a youth unemployment rate about 25%. 251 Furthermore, in order to encourage entrepreneurship within the region several initiatives are being taken to overcome the stigma of failure that entrepreneurs suffer from when they file for bankruptcy. One of them is Think Young, a group, which lobbies on the behalf of youth on issues including entrepreneurship to the European Union, and they have launched a Fail 2 Succeed campaign, which aims to break through the stigma of failure and in fact celebrates business failure as a learning requirement for future success. 252 Another initiative is the new EU program for Education, Training,Youth, and Sport for known as Erasmus+, which aims to boost skills and employability, as well as modernizing Education, Training, and Youth work and will provide opportunities for over 4 million Europeans to study, train, gain work experience and volunteer abroad. 253 There are many such initiatives being taken not only by regional bodies, but also national bodies, in order to ensure that the problem of youth unemployment is overcome. 243 Education for Employment. Homepage. Retrieved from: Ibid. 245 ILO (2013). Global Employment Trends for Youth Retrieved from: dcomm/documents/publication/wcms_ pdf 246 Eurostat. News Release, 1 April Retrieved from: EN.PDF 247 Mourshed, M., Jigar, P., and Katrin, S. (2014). Education to Employment: Getting Europe's Youth into Work. Insights and Publications- McKinsey & Company. McKinsey Center for Government. Retrieved from: < 248 Publications Parliament UK. (2014). Youth Unemployment in the EU: A Scarred Generation? Authority of the House of Lords. Retrieved from: Eurofund. Press Release, 22 October Retrieved from: European Commission. Youth Employment. News RSS -Employment, Social Affairs & Inclusion. Retrieved from: UNCTAD (2014). Entrepreneurship and Productive Capacity-building: Creating Jobs through Enterprise Development. Retrieved from: UNCTAD (2014). Entrepreneurship and Productive Capacity-building: Creating Jobs through Enterprise Development. Retrieved from: Erasmus. Retrieved from: 94 Children, Youth & Finance: Action for Sustainable Outreach

95 5.4.3 Conclusions It is evident that each region experiences youth unemployment in a different way and policies developed to eradicate youth unemployment would benefit from being tailored based on the specific challenges and opportunities youth face in the region. It is evident that both youth unemployment and vulnerable employment, where youth suffer from less than ideal working conditions, have an acute negative impact on the youth population. The largest contributor to this problem appears to be a mismatch between skills and job prospects. While many countries are trying to bridge the gap between schooling and employment, there needs to be a more concentrated effort on increasing the employability and business opportunities of youth. There is a need for greater emphasis on labor market surveys that inform school systems and vocational training programs to assess what jobs are most in demand in the country. An increase in entrepreneurial or apprenticeship experiences built into the school system is also necessary and this can be done through entrepreneurship exchange programs or peer-to-peer learning platforms. Overall the focus of livelihoods education needs to be cultivating a willingness amongst young people to stand up for their labor rights and for sound employment conditions. 5.5 Conclusion This chapter draws the following picture for youth financial capabilities: On the one hand, financial education and creating financial capabilities among children and youth is a key focus point on the agenda of the national authority. This is in line with the current global focus on creating a savings culture and improving saving habits. On the other hand, despite the growing evidence that financial inclusion, access to savings and asset building can be beneficial for young people, there is a significant lack of focus on financial inclusion in national policies for the general population, let along specifically for youth. This is partially linked to a current regulatory framework in which minors are not allowed to open a savings account without parental supervision. In addition, an account can only be managed as of the age of 18, limiting the child s saving activity to saving in the informal sector. Regulated financial institutions are further obligated to strictly comply with the know-your-customer (KYC) rules that require financial institutions to conduct client identity checks and verification. Moreover, even though this chapter has demonstrated that such initiatives are on the rise, a limited number of policies and curricula complement financial skills with essential social and livelihood skills to enhance employability and participate responsibly in social, economic, and political life. While many countries are trying to bridge the gap between schooling and employment, there needs to be a more coordinated effort towards increasing employability and business opportunities of youth. Moreover, social skills are vital in fighting the vulnerable unemployment among young people, which have an acute negative impact on the youth population. The ample efforts that are in place to increase sustainable livelihoods for young people remain somewhat scattered and not sufficiently linked to financial literacy and financial education programs. This chapter presents a clear imbalance between the supply and availability of Child and Youth Friendly products, and the demand for such products from young savers. Around the world, there are young people heading households, providing the main income for their families or working their way through school. The provision of more or complete autonomy for children and youth within the financial system (being able to control one s own finances within certain conditions), and having the skills needed to thrive within the financial and the labor markets, could provide a significant benefit and additional means of survival for a great number of young people. Regulatory reforms could provide the balance between this supply and demand. Several countries have already adopted child and youth friendly elements in their financial regulations. These new elements have been central to the development and implementation of national strategies of financial inclusion and education with the objective of turning every young person into an empowered economic citizen. Children, Youth & Finance: Action for Sustainable Outreach 95

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98 Chapter 6 Country Case Studies 6.1 Introduction To put forth opportunities in the field of financial regulation, product development and financial education strategies, CYFI has started the process of "mapping" the circumstances supporting or hindering youth financial inclusion around the world. The contribution of regulatory authorities, financial institutions and researchers are all key to the success of this initiative. The following country case studies illustrate several promising developments in Economic Citizenship Strategies, Financial Products and child and youth friendly banking regulation along with various initiatives to advance financial literacy at the national level. 6.2 Africa Ethiopia: The main stakeholders that contribute to financial literacy and inclusion initiatives in Ethiopia are the National Bank of Ethiopia, the Ministry of Education, World Learning and the Association of Ethiopian Micro-finance Institutions (AEMFI). Currently, Ethiopia has a financial inclusion strategy in place. Within this strategy there is a youth focus which encourages those under 18 to have bank accounts. Both primary and secondary school-aged children are targeted with the strategy and non-financial services have also been included.. Ethiopia is drafting its economic citizenship strategy, which includes a focus on children from primary and secondary school age. Within this strategy, both financial and social education is included. In Ethiopia there is a specific program on saving which is taught annually in civic class to all school children in grades The program includes: the basics of overcoming cultural barriers to saving, as well as, why savings, goal setting, planning, budgeting and why bank accounts are useful. 254 The strategy also includes a livelihoods component. Impact assessment is being conducted on youth financial inclusion and education programs. In 2012 World Learning implemented a project, Enhancing Child Social and Financial Education, to introduce financial education in primary schools. World Learning uses the Aflatoun curriculum to engage Ethiopian children in microenterprise development, and connects them with the local banking sector to ensure that new entrepreneurs have access to financial products or services to help them maintain and grow their small businesses. 255 The labor law in Ethiopia states that youth employment may commence at 14 years of age, with restrictions in place against certain jobs. The family may also provide special authorization to children at 15 years of age to take on any and all rights of majority age, including marrying and signing a contract. 256 Consequently, banks such as PEACE and ACSI allow children from 14 to 19 years of age to open and operate an account autonomously, after providing an identification card and a labor contract. 254 MasterCard Foundation and UNCDF (2012) Policy Opportunities and Constraints to Access Youth Financial Services. Web. 19 Nov < >. 255 World Learning. Web. 25 ov < 256 Ibid. 98 Children, Youth & Finance: Action for Sustainable Outreach

99 Lesotho: Financial education and inclusion in Lesotho is still at a preliminary stage. However, the Financial Education Steering Committee recently began concentrating its efforts on developing a program that would provide financial education to all communities. The United Nations Capital Development Fund (UNCDF) and the United Nations Development Program (UNDP) are working together with the Lesotho Government and National Advisory Committee to promote these financial education initiatives. Even though the national strategy in Lesotho is currently only in draft form, resources both financial and non- financial have already been allocated to the development of the national strategy. The main aim of the national strategy is to target primary and secondary school children in order to educate them about financial matters. An attempt is being made to integrate financial education into the school curriculum. The Government of Lesotho in partnership with the National Curriculum Development Centre (NCDC) is focusing on the integration of financial education into curriculum of grade six and seven, and on the development of materials for the promotion of knowledge and understanding of financial education among learners, employees, rural communities and the general population in Lesotho. Uganda: The Strategy for Financial Literacy in Uganda was developed under the leadership of the Bank of Uganda, along with 150 stakeholders. This strategy focuses on five main areas: financial education in schools, the use of media for financial literacy, financial literacy and rural outreach, financial literacy for youth, and financial literacy in workplaces, clubs and associations. 257 The country s Financial Literacy Advisory Group (FLAG), which includes decision makers drawn from the public, private and NGO sectors endorsed the Strategy and launched it in August 2013, along with the German Development Cooperation. The purpose of the Strategy is to provide Ugandans with the knowledge, skills and confidence to manage their personal as well as family s finances. 258 The Bank of Uganda has created two bodies to assist in the implementation of the strategy and these bodies are: The Financial Literacy Advisory Group (FLAG) and The Financial Literacy Information Sharing Group (FLISG). The strategy aims: to improve the ability of the population to manage their personal finances well; to help equip people to protect themselves against fraud; to make cost-effective use of resources which can be used to strengthen financial literacy; to promote increases in the number, and improvements in the quality, of initiatives to strengthen financial literacy; and to facilitate effective co-ordination and knowledge-sharing between organizations and individuals who are working to improve financial literacy. 259 Regarding financial products, the Uganda Finance Trust Ltd (UFT) has recently developed three new products specifically targeting children and youth: Girls Choice, Teen Classic and Youth Progress. UFT, in collaboration with Population Council, MicroSave and sponsorship through the Nike Foundation, developed Girls Choice for girls both in and out of school, from 10 years to 19 years old. 260 Furthermore, in 2011, UFT expanded its youth products to included Teen Classic and Youth Progress with support from the UNCDF-YouthStart initiative. The three products have more flexible documentation requirements, lower fees for opening accounts, lower minimum balance requirements, and no maintenance or withdrawal charges. 261 UFT also offers non-financial services, which equips the youth with practical knowledge and skills related to financial literacy and other disciplines that influence saving and spending behavior and promote a smooth transition into adulthood. 262 Other banks in Uganda have financial products that are specifically focused on children and youth clients. These banks include: Finance Trust, Equity Bank, PostBank Uganda and Centenary Bank. These banks all have accounts and services that are tailored to the needs of children and youth, and have various requirements such as minimum balance, passport size photos and identification that must be fulfilled in order to be utilized by young people in the country. 257 Bank of Uganda (2013) The Bank of Uganda Launches Strategy for Financial Literacy in Uganda. Web. 19 Nov < 258 Bank of Uganda (2013) Strategy for Financial Literacy in Uganda. Web. 19 Nov < 259 Ibid. 260 Muñoz, L. and Nakamatte, F. YouthStart: Uganda Finance Trust Case Study. Web. 19 Nov < 261 Ibid. 262 Ibid. Children, Youth & Finance: Action for Sustainable Outreach 99

100 6.3 The Americas Brazil The first version of the Brazilian national strategy for financial inclusion dates back to 2009 when it was validated by national regulators. The strategy was then approved in 2011 as the National Strategy for Financial Education (ENEF). ENEF is coordinated and executed by the National Financial Education Committee (CONEF), composed of the Central Bank of Brazil (BCB), Securities and Exchange Commission of Brazil (CVM), National Superintendence of Pension Funds (Previc), Superintendence of Private Insurance (Susep), and in collaboration with AEF-Brasil - Associação de Educação Financeira do Brasil, a non-profit organization which functions as the implementer of ENEF. There is no law or specific policy to promote access to financial products for children and youth. According to regulation, the father, mother, or legal advisor should represent children under the age of 16. Individuals over 16 years of age and less than 18 years of age, who are not emancipated, should also be represented by their father, mother, or legal tutor. According to Article 5 of the Brazilian Civil Code, the legal age stands at 18 years at which point a person is qualified to participate all the acts of civil life. However, exceptions are allowed in the following ways: through parental authorization, or by one of them in absence of the other, through a public instrument, independently of the judicial approval or by decision of the guarding judge, having been heard by the advisor, if the youth is sixteen years old; by marriage; through the exercise of an effective public employment; through graduation from higher education; by civil or commercial endowment, or by the existence of a labor bond through which the youth over 16 years of age manages his or her own livelihood. Canada Because of the high percentage of the population with existing accounts at formal financial institutions, Canada has not pursued an explicit strategy for increasing financial inclusion for children and youth. However, the Government of Canada has taken the issue of financial literacy very seriously and has launched a number of initiatives to build the financial capability of Canadians from all walks of life. Canada s Minister of State (Finance), Kevin Sorenson, has stated Financial literacy is a priority for the federal Government. We want Canadians at all ages and stages to have the skills they need to make solid financial choices that benefit them. 263 In 2010, the Federal Government, through the Federal Consumer Agency of Canada (FCAC), established a National Taskforce on Financial Literacy. In 2014, acting on the recommendation of the Taskforce, a National Financial Literacy Leader was named to facilitate various financial literacy initiatives across the country with input from the newly established National Steering Committee, comprised of government, private sector and civil society representatives. 264 A three phase consultative process was launched in 2014 to draft a financial literacy strategy that is inclusive, relevant and accessible for all Canadians. 265 The first phase focused on Senior Citizens, the second on priority groups including lowincome Canadians, Aboriginal peoples, individuals with disabilities and newcomers to Canada. The final phase focuses on the unique financial challenges facing children, youth and adults in Canada and will run to the end of 2014 with the final strategy to be launched in the first half of The Canadian Government has already demonstrated its commitment to the financial literacy of young Canadians. In 2011, the FCAC launched the online financial education simulator The City, targeted at high school students and young adults, and continues to maintain the website It Pays to Know where young Canadians can access a wide database of financial literacy resources and personal assessment tools. 266 November has also been established as Financial Literacy Month in Canada, with a number of schools and youth serving organizations taking part in games and contests throughout the month to promote the importance of financial responsibility. Financial education has also been successfully worked into the school curriculum in the provinces of Alberta, British Columbia, Manitoba and Ontario. Despite a high proportion of the youth population already banked in Canada, there is an emphasis on ensuring that young people are able to use a variety of financial services in a responsible manner. 263 FCAC, Towards a National Strategy for Financial Literacy in Canada: Phase 3 Young Canadians and Adults. A Consultation Paper, FCAC, Canadian National Steering Committee on Financial Literacy, FCAC, Towards a National Strategy for Financial Literacy in Canada: Phase 3 Young Canadians and Adults. A Consultation Paper, FCAC, It Pays to Know Website, Children, Youth & Finance: Action for Sustainable Outreach

101 Colombia In Colombia, the current strategy for financial education is being developed by the Ministry of Treasury and Public Credit, The Superintendence of Finance, the Ministry of National Education, the Central Bank, the Financial Superintendence of Colombia, the Financial Institutions Guarantee Fund (FOGAFIN), the Cooperative Companies Guarantees Fund (FOGACOOP) and the Self-regulating Institution of the Stock Market (AMV). These organizations focus on different policies and initiatives within their scopes of action. In order to manage these various initiatives, a law to create a National System of Financial Education is in course. The main supporters of child and youth finance issues in the country are the Central Bank of Colombia and the Superintendence of Finance (SFC). The financial education strategy of the SFC is developed through the organization s Program for Education and Information, known as, "Channels of Diffusion, Planting Culture for Prevention." This program intends to reach the Colombian population through mass media and strategic alliances among companies to offer information and education to financial consumers. Through the Direction of Protection to the Financial Consumer, the SFC participates in spaces together with other organizations to generate and deliver the financial tools that foster learning, such as: educational chats, workshops, and online courses in alliance with the National Learning Service (SENA), virtual forums, and distribution of educational material such as posters, cards, handbooks and flyers. In addition, the SFC publishes relevant information for consumers on its website, among which are: concepts, recommendations of prevention, frequently asked questions, possible frauds, and availability of the interest rates conversion simulator, etc. At present, SENA offers an online course, and the content is developed jointly under the leadership of the Financial Superintendence with the name "Supply of Information and Advice for the Financial Consumer." This course offers information on the basic products offered in the financial sector, the financial consumer s rights and how to exercise them, how to acquire a financial product, how to create a budget and the basic structure of the stock market. This content is presented in a pedagogical and friendly format. Recently, the SFC joined efforts with the Center of Financial Products of SENA to initiate a program for building financial capabilities. The program targets 108 public and private schools in Bogotá. Soon this initiative will be linked to the programs of the formal educational institutions. The purpose of the program is the creation of a permanent and direct link with the schools to promote a greater use of the tools that the SFC has designed for financial education, including a specific component of its website called "Superlandia," which offers contents designed especially for children and teenagers. On the part of the industry, it has been observed that the different sectors have developed programs of financial education with contents and tools for the diffusion of practical recommendations on personal finance. Additionally, together with the public sector, initiatives have been promoted to include a component of financial literacy within the contents of formal education. Despite not having a national strategy for financial education, there is regulation that forces financial entities to provide financial education to its consumers. Article 3 of Law 1328 of 2009 (Protection Regime to the Financial Consumer) states that the companies under surveillance, the guild associations, consumer associations, public institutions that perform intervention and supervision on the financial sector, as well as the agencies of self-regulation will foster adequate education of the financial consumers regarding the financial products and services offered by the companies under surveillance, of the nature of the markets in which they act, of the institutions authorized to lend them, as well as of the different mechanisms established for the defense of their rights. In Colombia, the legal age currently stands at 18 years. Nevertheless, the law recognizes that young adults under age (between 14 and 18 years old) should be allowed some autonomy, including administering a savings account on their own; individuals under 14 can have access too, but in the company of an adult. Guatemala Currently, Guatemala does not have a financial education or financial inclusion strategy in place. However, different government bodies have signed agreements to undertake national initiatives to establish and promote financial education in the country. For example, the Central Bank of Guatemala and the Ministry of Education signed a cooperation agreement in 2012, and the goal was to reach all schools in the country through the Central Bank Financial Education initiatives. Additionally, several government organizations, including the Central Bank of Guatemala, the Superintendence of Banks, the Ministry of Education, the Superintendence of Taxes and the Guatemalan Banking Association are undertaking efforts to start defining the national strategy for financial education. Children, Youth & Finance: Action for Sustainable Outreach 101

102 There are three main financial education programs that reach in-school children in the country, both of which have been implemented due to the cooperation agreements mentioned above. One of these programs, Program on Economic and Financial Education, supported by the Central Bank of Guatemala, includes the creation of a network of libraries all over the country, the establishment of the National Money Museum, the creation of a series of educational materials targeting children and youth, regular financial education fairs all over the country and radio and TV campaigns. There are policies from the Banking Superintendence focused on carrying out financial education campaigns, addressed to children of school age and the public in general, in order to promote the value and benefit of saving. In Guatemala, minors can have savings accounts, but they are managed along with their parents accounts until they turn 18, at which point they have the legal capacity to manage accounts on their own. Additionally, the National Mortgage Credit, under the National Department of Savings for Children, was created through the Governmental Agreement of September 26, Among their objectives are the following: a) to instill the habit of saving in children from a young age; b) to foster teaching through understanding, memory, and willpower; c) to found the concept of saving on the bases of security as a virtue conversely to avarice and consumerism; d) to promote practical saving habits in youth with appropriate stimuli; and e) to qualify them with the ability to manage their economic problems from an early age, considering these problems will be a component of their future economic development; f) to guide them on the compliance of social duties with their savings. Children can open accounts at the National Mortgage Credit with Q and the aid of their parents. Jamaica Jamaica does not currently have a national strategy for financial education or financial inclusion. The main financial education program in the country is implemented by Junior Achievement (JA) in collaboration with the Financial Services Commission of Jamaica (FSC). The program JA Personal Finance focuses on: earning money, spending money wisely through budgeting, saving and investing money, using credit cautiously and protecting one's personal finances. Participation in the program allows students to: recognize the fundamental elements of their personal finances: earnings, saving and investing, budgeting, credit, risk management, and giving, and apply these fundamental elements to a personal financial plan that allows them to set specific goals for their lifelong financial needs and desired quality of life. With regards to financial products for children and youth in the country, the Bank of Nova Scotia (Jamaica) Limited has a product for children under the age of 18, in the form of a savings account that requires permission of the legal guardian to make transactions, and also offers special training for those employees dealing with children under the age of 18. The bank reports that the main hurdle to attract children and youth to open bank accounts is the regulatory documentation needed. Peru Peru is currently developing a National Strategy for Financial Inclusion, which is focused on three main topics: consumer protection, financial education and financial access. There are organizations that have taken the lead in the development of child and youth finance initiatives within the country, and child and youth financial inclusion in the national strategy. The Superintendence of Banks, Insurance Companies and Private Pension Funds (SBS) has played a prominent role in the initiatives taken on a domestic level, reaching remote and vulnerable populations. Its efforts include, training teachers of secondary education on matters of financial education through its Advisory Program for Educators. Through the program, knowledge and tools are offered to educators so that they may disseminate this knowledge among their students. Another organization that has been particularly relevant is the Institute of Peruvian Studies, an organization that has provided its commitment and support to the development of the national strategy. Furthermore, a multisectorial committee, comprising the following institutions: Central bank of Reserve, Bank of the Nation, Ministry of Economy and Finance, Ministry of Development and Social Inclusion, and Banking Superintendence, Insurance and AFP, was created in 2011 by presidential decree to take up this issue. Since 2009, the Department of Education has included financial education in the school curricula for secondary education (boys and girls between 12 and 17 years of age). At present, Peru is going through a process of educational reform, under which financial education will be included along the regular basic education EBR (education up to 17 years of age). Currently, efforts are focused on the inclusion of financial education in the national curriculum. The new curriculum design covers 8 fundamental learnings (aprendizajes fundamentales). The topic of financial inclusion will be included in 102 Children, Youth & Finance: Action for Sustainable Outreach

103 the learnings related to citizenship and entrepreneurship. For this, under the leadership of the SBS and Ministry of Education, discussion have been formed in which all relevant institutions from the public and private sector have provided advice for the development of competences and financial capacities that should be included in the regular basic education. In Peru, no specific regulations have been issued related to financial services for children and youth. Nevertheless, the Code for Protection and Defense of the Consumer, Law N and its modifying legislation, which is applicable to all the economic activities, states that advertising directed to minors should not induce them to erroneous conclusions regarding the real characteristics of the products announced or their possibilities, having to respect the candor, credulity, inexperience, and feelings of loyalty of minors. On the other hand, although it is not directed to the offering of financial products, Article 229 of the General Law of the Financial System and the System of Insurances and Organic of the Superintendence of Banking and Insurance, Law N and its modifying legislation states that the deposits constituted by a minor will be governed by the Code of Children and Adolescents. The Regulation of Operations with Electronic Money, approved through Resolution SBS N , considers minors over 16 years of age who are authorized by their tutors or legal attorneys, or those who have the capacity to exercise according to the regulations currently in force, as holders of the electronic money. In order to open a savings account, it is required that the holder be 18 years old, age when the capacity to exercise civil rights is acquired. Nevertheless, it is possible for a person acting as legal representative of a minor to open a savings account on his or her behalf; but a minor cannot operate this autonomously. Additionally, according to Article 46 of the civil code, individuals over 16 years of age, by marriage, or by obtaining official title authorizing them to exercise a profession or job, can obtain the capacity to exercise civil rights. 6.4 Asia-Pacific Fiji Fiji has created a national platform called the National Financial Inclusion Task Force (NFIT). The Reserve Bank of Fiji (RBF) is currently leading this national platform comprised of several public and private organizations committed to work on the issues of financial inclusion and education. This is accomplished by a close coordination between NFIT and the Financial Literacy Working Group (FLWG). Fiji has implemented the program in 28 schools and resources have been invested in expanding these efforts while maintaining the quality of the intervention. Moreover, financial education covering personal money management and investing was introduced in 2013 to the core school curriculum from Class 1 to Form 6. This dedication to quality financial education is further stressed by the establishment of the Pacific Financial Inclusion Program (PFIP) and the Ministry of Education s training of teachers who will monitor and maintain quality assurance of the Fiji Financial Education Curriculum Development (FinED) Project. This FinED project is a collaboration between the PFIP and Ministry of Education of Fiji and has now been integrated the national curriculum of Fiji. The three main pillars in the curriculum are 1) Managing Money 2)Income & Wealth, and 3) Financial Risk & Planning, which are currently added as core subjects into the formal education system. This will be present in all 12 years of basic education. Of the countries participating in the PFIP, and is currently the most advanced in terms of implementing a well-rounded approach to achieving children financial literacy within the country. Fiji has satisfied all of the indicators set-out by the PFIP Secretariat. 267 A large portion of Fiji s youth population (about 200,000 students from 900 schools) now have access to financial literacy programs. Additionally, 11,000 adults, who did not receive any prior financial education, were able to improve their financial literacy under the leadership of the Reserve Bank of Fiji. Fiji continues to lead as a key example in implementing a well-coordinated plan between government authorities and education ministries to achieve exceptional results to furthering financial education amongst its youth Children, Youth & Finance: Action for Sustainable Outreach 103

104 The major children saving accounts available for individuals under the age of 18 in Fiji are the Bank South Pacific (BSP) Kids Savings Account 268 and the ANZ Bank Junior Access Account. All child savings accounts in Fiji require consent from the child s parent or legal guardian. In some child banking products, the banks try to instill savings behavior by implementing a lock-in period. As an example, the BSP Kiddie Savings Account has a lock-in period from February to November, where children will not be able to withdraw any amount, unless the parent or legal guardian provides consent. The opening of a savings accounts, where the owner of the account has full autonomy, corresponds to the legal age to enter into a contract. This is in line with the National Labor Law of Fiji, and within the Part VIII of the current Employment Act, which states that the legal age to enter into a contract is 18 years old No exceptions have been given by law or the Reserve Bank of Fiji to foster the opening of a savings account under the control of a minor (i.e. defined by the Fiji Labor Advisory Board as an individual 15 years old and younger) or a young person (i.e. defined in the Fiji Employment Act as an individual over the age of 15 and under the age of 18). This restriction renders children in Fiji unable to open savings accounts by themselves and restrict them from having full control over savings accounts, if they have one. Philippines The Bangko Sentral ng Pilipinas (BSP, the central bank of the Philippines) leads all advocacy activity, programs and strategies that are related to financial education and financial literacy. The BSP asserts that the initial interest towards empowering children and youth through financial literacy and access to products are motivated by three main indicators: (1) 8 out of 10 households don t have bank accounts, (2) 66% of total deposits are P5,000 or less, 271 and (3) approximately 29% of Filipinos are 12 or younger. These three indicators suggest that in order to create sustainable impact at the national level, there is a need to increase access, ensure better savings behavior, and alter the mindset of the younger generation about money matters. The BSP achieves this through a three-pronged approach. Firstly, they provide resources and training for teachers to integrate financial education in various subjects through the BSP-DepEd (Department of Education) Financial Learning Program, which is gradually integrated in to the elementary school curriculum. The program uses three core books that aim to build the teaching capability to inculcate good financial behavior among Filipino children. These financial lessons are focused on money, money management, savings, and basic economics. Aside from teacher trainings, the program provides both hard and soft copies of the Teaching Guides to all schools in the Philippines. Secondly, educators and institutions that provide best practice in educating financial education are encouraged and highlighted through the Guro ng Pag-Asa Awards (Teacher of Hope). The program aims to instill enthusiasm in teachers and institutions towards financial education, and inspire the sharing of best practices among schools. Thirdly, the BSP has partnered with 11 of the largest banks in the Philippines to pioneer the Banking on Your Future: Kiddie Account Program which allows kids 0 to 12 years old to open an account with lowered opening requirements and little to no fees attached. Partnering with the biggest banks helps to ensure wide availability and security of children s savings. Thus far 3,232 bank branches across the country are participating in this program and 626,691 accounts have been opened as of June By using this threepronged approach, the BSP believes that it will be able to foster financial sustainability for children and youth. Currently, there are no regulations in the Philippines allowing children and youth under 18 to open a bank account autonomously. The BSP has launched the Banking on Your Future Program, which allows exemption for the Updated Anti-Money Laundering Rules and Regulations, Section X802, only for accredited banks. Legally, BSP regulation allows only those 18 years old and older to open an account. However, through the framework offered by the BSP, children below 12 years old are now allowed to open a bank account with parent or legal guardian supervision. Notably, children aged 7 to 12 years old are also allowed to open their own a bank account, but only through accredited banks. As part of this program, identification requirements have been kept to a minimum; only one official (or school) ID with picture is needed in addition to the applicant s birth certificate. 268 There are no fees associated to the savings account, withdrawal restrictions can be placed b parent/guardian, lock-in period from February to November, a minimum opening deposir of K2.00 but with no minimum balance or account maintainance fee (more info at The amount of PHP 5, translates to approximately USD , suggesting little to no savings behavior across the population in the Philippines. 104 Children, Youth & Finance: Action for Sustainable Outreach

105 Singapore Singapore currently has a financial education strategy at the national level. A national platform, called the Financial Education Steering Committee (FESC), was formed to create the financial education strategy and is geared towards financial inclusion and literacy. This steering committee established a holistic strategy through a multi-sectorial approach. It is chaired by the Monetary Authority of Singapore (MAS), and has representatives from various public sector agencies and government ministries, including the Ministry of Education (MOE), Ministry of Health (MOH), Ministry of Manpower (MOM), Ministry of Social and Family Development (MSF), Central Provident Fund Board (CPFB), National Library Board (NLB) and People s Association (PA). All basic and secondary teachers in Singapore are trained through the FESC to integrate social and financial education by using a values-formation approach. The launching of the Citi-NIE Financial Literacy Hub, a pioneering program aimed to advance financial and economic literacy of children and youth in Singapore, has helped to solidify this approach. Since 2013, Citi-NIE Financial Literacy initiative has reached 4,110 teachers and tutors, established partnerships with 80 academic institutions, coordinated with more than 290 schools, organized 160 events, and impacted close to 288,000 students a large part of the young Singaporean population. Singapore s recent successes highlight its long-term goal of building better economic citizenship education for its citizens. MoneySENSE, 272 a financial education program, works closely with various associations and organizations to further financial education outreach to the population. Volunteers and partners from industry associations, academia and consumer/investor organizations help financial education efforts by developing content, fielding speakers, logistics and administration support and other resources. The MoneySENSE program uses a mixture of various activities to engage children. Singapore s FESC highlights that MoneySENSE uses different innovative (and tech-driven) channels, such as mass media, social media, competitions, workshops, workplace talks, etc. National-level initiatives were also launched by MoneySENSE and Singapore NIE to promote non-traditional channels to impart knowledge and practice of financial literacy including online video competitions, games, challenges, and all-around Singapore trail games. In 2013, the components of financial literacy education were included in Food & Consumer Education for Secondary students in 2014 to develop better judgment in spending money, gain awareness about modes of payments, and deepen the appreciation for budgeting and saving. Additionally, financial education: basics of money management, savings, and difference of wants and needs are fully integrated to the basic education curriculum through values formation trainings provided by Singapore s NIE to all current teachers and future teachers (i.e. currently studying to become teachers). Various banks offer child products in Singapore, but most of these do not allow children below the age of 18 to manage the account autonomously. Some example of these bank accounts are those offered by DBS Bank s POSBkids account, 273 OCBC Mighty Savers Account, 274 Standard Chartered Bank s e$aver Kids Account, 275 which allow children to open bank accounts on the condition that a parent or legal guardian must co-sign it. Accordingly, Singapore s Ministry of Social and Family Development also allows parents to open a joint bank account for them and their children when they are born in a scheme known as the Child Development Account (CDA) for children, which is eligible. This can only be obtained through the OCBC Bank and the Standard Chartered Bank as stipulated by the Ministry of Social and Family Development and is linked to the Baby Bonus Program At present, Singapore s Banking Law Chapter 22 Section 2.4 only allows individuals at the age of 18 to enter into contract with banks. 278 In fact, this was only lowered to 18 on March 1, 2009 due to an amendment to the Civil Act Law (Cap 43, 1999 Rev Ed). It is also stated that a contract entered into by a minor who has attained the age of 18 years (the 'specified minor') will be given the same effect as if the contract had been entered into by a person of full age and will, accordingly, be binding on and enforceable against him as such Earns daily interest, no minimum deposit and no fall-below fee until 21 years old, free money transfers between the child and his/her parent, and opening gifts (more info at No initial deposit, and requires S$1 minimum balance, multiple gifts and privileges (more info at No minimum initial deposit, no minimum average daily balance, no fall-below fee, and no early account closure fee (within 6 months) (more info at Children, Youth & Finance: Action for Sustainable Outreach 105

106 The laws on identification are also very stringent in Singapore, as they require minors to submit a written consent form from their parent or legal guardian allowing them to open an account. Additionally, it is also required by the Singapore Banking Law for the parent or guardian to be present if the parent or guardian does not hold an account at the same bank (primarily to have a check on the signature that will be presented in the consent form given by a bank). 6.5 Europe Armenia Armenia is focused on institutionalizing financial education and inclusion on a national level. The Central Bank of Armenia has been leading the initiatives in the country since 2007 and a new mandate obligated the Central Bank of Armenia (CBA) to create an environment that is necessary for the protection of financial sector consumers. 279 In 2007 the Steering Committee for Development and Implementation of the National Strategy of Financial Education was established (NSFE), and this initiative was led by the Central Bank of Armenia and along with members of governmental/public bodies, private sector, and civil society/ngos. 280 Resulting from these efforts, the national strategy for financial education in Armenia was adopted by the Steering Committee of NSFE and the Board of CBA, and recently received approval by the government on November 13, A number of education initiatives have taken place; thus far, these include My Finance Month, an awareness celebration campaign that takes place in October each year, and aligns with the celebration of world savings day. My Finance Month is a month long annual project which hosts group events and activities aimed at accenting the importance of personal finance management among the population. 282 The aim of this project is to reach children and adults and to make them understand the importance of financial education as well as the usefulness and importance of personal finance management, shopping around, using financial products, savings, debt management, insurance and pension. 283 During this month they organize contests on financial topics, financial education bus tours and meeting and seminars at schools and universities all over Armenia for children and youth. 284 Other initiatives that the Steering Committee is undertaking include the publication of various educational material and informational brochures for children and youth, and organizing nationwide conferences on financial education. The Steering Committee aims to include financial education as a mandatory subject in the school curriculum, after the adoption of the national strategy. Junior Achievement Armenia is also active in delivering financial education to children and youth. They implemented the Aflatoun program for financial and social education in the fall of 2010 after being translated to Armenian, and teaching guides, methodologies and evaluation assessment were developed. Junior Achievement Armenia also has other programs for livelihoods and entrepreneurial education for young people, implemented in more than 1000 schools all over Armenia. The regulation in Armenia allows children 14 years or older old to obtain and manage their own bank account (Civil Code, 30). In 2014 the Union of Banks of Armenia and CYFI collected data on the available banking products for children and youth in the country by distributing a survey to all its member banks. Out of 17 banks surveyed, 14 banks in Armenia have banking products for children and youth. Although most banks offer savings and current accounts for children older than 14 years, the vast majority do not offer an educational component or provide special training for staff on how to deal with this target group. Moldova The National Bank of Moldova is currently drafting the National Financial Education Strategy, and one of the main target groups of this strategy is children and youth. In order to assess the best strategy for this target group, they have mapped out the financial inclusion initiatives already underway for youth under 18 years old. This information will help shape the financial educational strategy and may also include a financial inclusion component. In order to ensure that financial 279 Lalayan, S. (Financial Education Coordinator, Central Bank of Armenia) (2014). Financial Capability Measurement in Armenia. CYFI Third Regional Meeting for Europe and Central Asia. Lecture conducted from Child and Youth Finance International, Macedonia. 280 Ibid. 281 Ibid. 282 Central Bank of Armenia (2013) "My Finance Month" Project. 283 Ibid. 284 Ibid. 106 Children, Youth & Finance: Action for Sustainable Outreach

107 education becomes a mandatory subject, given the load of content of the actual national curriculum, the Ministry of Education has chosen to include financial elements within already compulsory civic education courses. Prior to its introduction as an optional subject, the Curriculum for Social and Financial Education was piloted in 18 residential institutions for children with learning disabilities and children left without parental care. Additionally, there are initiatives from civil society organizations aiming to engage schools in financial education programs. The Institute of Education has also approved teachers training based on the Aflatoun model. The leading organization that promotes financial inclusion and education among youth in is the National Bank of Moldova. However, Moldova does not have a financial inclusion strategy nor does it have a policy in place promoting financial access for children and youth. While Moldova does not have an official strategy in place for financial education, the country does integrate both financial and social education into their secondary education curriculum. The country has a national advisory committee in place, consisting of the Financial Regulatory Authority, Ministry of Finance, Ministry of Education, Bankers Association and a variety of private financial institutions and NGOs. The regulation in Moldova allows youth aged between 14 and 18 to open and operate bank accounts, autonomously. Procredti Bank has developed ProKid which is a saving account designed for children aged up to 18 years old, which can be opened in MDL, EUR and USD. It is a service of ProCredit Bank SA, which promotes a culture of saving and financial education. More than 3,000 youth under the age of 18 currently have an account with the bank. Additionally, JSC Moldova Agroindbank has financial products available for those under the age of 18 years. Currently, the Republic of Moldova does not have an established law that promotes access to financial products for children and youth. The only law that refers to the relationship between minors and financial institutions is the Civil Code of the Republic of Moldova no of June 6, In article 21, paragraph 2, letter C, it is specified that a minor, who has completed the fourteenth year of age, may transfer funds to banking and credit institutions, or dispose of funds in conformity with the law, without the consent of their legal guardians. According to article 20, paragraph 1 of the Civil Code, individuals shall only become fully legally competent when they reach 18 years old. Children are included in the general financial consumer protection policy and/or law applicable for the whole population. According to the legal framework of the Republic of Moldova an individual is considered a child if they are less than 18 years old, and the child s rights are regulated by the Law on Children s Rights no. 338 XIII dated December 15, 1994, Civil Code and Family Code. Protection of the legal rights and interests of a child is ensured by his / her parents or persons who substitute them or as in some specific cases provided by law by a prosecutor, tutelage authorities or other responsible bodies. Netherlands The National Strategy for Financial Education in Netherlands was introduced in June Money Wise is a designated platform which partners use to collaborate in order to promote responsible financial behavior. There are three main aspects that Money Wise focuses on: money management, financial planning and choosing financial products. The focus of Money Wise is to integrate financial education into the school curriculum. Furthermore, Money Wise supports policy makers in developing effective interventions and aims to stimulate and initiate the development of instruments that advance the responsible financial behavior of consumers. 285 Regarding financial inclusion, various banks within the Netherlands offer child friendly products as a part of their services. An example of this is the Rabo JongerenRekening, at Rabobank, which targets children and youth aged 12 to 18 years old. This serves as a tool allowing children and youth to manage money, make payments and save. This account has other tools that are linked to it such as a mobile app which provides them with instant access to their account without being physically present at a bank. This account is typically managed with parental consent; however, as the child grows older their ability to manage their account autonomously increases steadily. These types of accounts are provided by most banking institutions in the Netherlands and aim to provide children and youth with access to financial services that increase their financial responsibility. Parents of children under 12 can open an account on their child s behalf. The parent has complete control over the bank account. A child can open and operate a bank account from 12 years onwards, however, the account can only be opened with permission of parent. Although the child can operate the bank account independently, the parent decides on the 285 Simonse, O., Revised National Strategy for Financial Education in the Netherlands presentation during High-level conference on global and European trends in financial education May Istanbul, Turkey Children, Youth & Finance: Action for Sustainable Outreach 107

108 scope and features of the banking product (e.g. access to mobile and/or Internet banking). Parents can choose to be notified by the bank when the child makes a transaction by card. Any person from 18 onwards can open and operate a bank account independently without the permission of legal guardians. Portugal The Portuguese National Plan for Financial Education was launched in 2011 by the National Council of Financial Supervisors, composed by the three financial supervisors the Banco de Portugal (Central Bank), the Portuguese Securities Market Commission (CMVM) and the Portuguese Insurance and Pension Funds Supervisory Authority (ISP) and was formally endorsed by the Minister of State and Finance. The main goals of the National Plan for Financial Education are to increase the financial knowledge of the Portuguese population and to promote the adoption of appropriate financial behaviour, with a special focus on children and youth, workers and vulnerable groups. It also aims to promote financial inclusion, namely by disseminating information about basic bank accounts, which allow customers to carry out the essential banking operations at a low cost. The success of the National Plan hinges on the involvement of the various public and private entities which have an interest in financial education. Therefore, the Plan works as a hub for a large number of stakeholders, including ministries, financial sector associations, consumer protection associations, trade unions, business associations and universities. The National Plan stresses the need to define criteria for the financial education initiatives. A set of Principles for Financial Education Initiatives were therefore published in April 2012, defining minimum quality standards which have to be met by all financial education initiatives developed within the scope of the National Plan. They are particularly relevant in preventing potential conflicts of interest, namely, from the involvement of financial institutions. The Ministry of Education and Science formally acknowledged these Principles because they consider it ill advised to have financial institutions develop financial education projects in schools. In May 2013, the Secretary of State for Basic and Secondary Education created conditions for anchoring financial education to school curriculum when they approved Core competencies for financial education in kindergarten, basic and secondary education and adult learning and training. These core competences were drafted by a group of experts from the Ministry of Education and Science and from the financial supervisors. They establish financial education learning goals for each school level, and also teaching goals for adult learning and vocational training. The next step was the launch of a national training program for teachers, jointly prepared by the Ministry of Education and Science and the financial supervisors. The first training course of this program was successfully completed in the first half of 2014 in the northern region of the country (Oporto). The second started in the second semester and will be concluded in January 2015, in the center region (Coimbra). This training program will cover all regions of the country by the end of The Ministry of Education and Science and the financial supervisors, in partnership with the main financial sector associations, are also preparing school books and other teaching materials to support financial education in schools. Lastly, the financial supervisors are developing an e-learning platform to support the training of trainers (including teachers) and the e-teaching of financial education nationwide. This platform is to go live in mid-2015 In parallel to creating conditions for introducing financial education in the school curriculum, the National Plan has also been encouraging schools to develop financial education projects. First, a national competition (the Todos Contam competition) has launched at the start of each school year since 2012 to reward the best financial education projects from kindergarten to secondary schools. The three financial supervisors visited all the winning schools. Second, the financial supervisors have also joined forces with the other stakeholders of the National Plan to celebrate the Financial Education Day each year on October 31st (the World Savings Day), a national event aimed at raising awareness of the importance of financial education. After the first edition in 2012, in 2013 the event was dedicated to financial education in schools, under the motto Financial education is now in schools. Don t be left behind! and in 2014 a special focus was given to entrepreneurship, with the theme Financial Education in Support of Entrepreneurship. Finally, the website of the National Plan: (which was launched in July 2012) continues to play an important role in providing information and useful tools for managing personal finances. Three different libraries on this website offer free financial education materials from the National Plan s stakeholders, including educational materials specially targeted at children, teachers and trainers. In Portugal, all children aged 0 to 18 (minor) may be holders of deposit accounts under their name. As a general rule, these accounts can only be opened and operated by a legal representative (parents or guardians). However, minors aged 108 Children, Youth & Finance: Action for Sustainable Outreach

109 16 and over can open and operate a bank account in their own name if they hold a legal labor contract or if they are emancipated by marriage. The Portuguese law does not allow children below 16 to work or marry. 6.6 Middle East and North Africa Egypt Egypt is in the process of drafting a financial education and inclusion strategy, with a specific focus on children at the primary and secondary school age. There is a committee already in place for the drafting of this strategy and they have been conducting meetings for approximately a year. The vision and focus of the strategy have been finalized and is focused on creating a more accessible environment for children and youth. Furthermore, it will also encourage those under the age of 18 to have access to financial services through schools. 286 Currently, Egypt has begun implementing the Aflatoun program of financial education with training and monitoring provided by the National Council for Childhood and Motherhood, and a partnership with the Egyptian Post Office to supervise the program s financial component. Egypt is working towards the integration of financial education into the national curriculum. With the authority of the Central Bank of Egypt, greater engagement of educational institutions is taking place. In addition to the implementation of an Aflatoun program in elementary and secondary schools, more universities and higher educational institutes such as Cairo University are also being involved as part of the integration into the national curriculum. The Egypt Banking Institution (EBI) has undertaken a financial inclusion initiative under Shaping the Future, along with Child and Youth Finance International, Plan International Egypt, GIZ, Silatech and Injaz Egypt. EBI is furthering financial inclusion within the country in order to support banks and financial institutions to create Child and Youth Friendly products. The main aim is to create platform where best practices are shared and developed on a national level. At this point children and youth under the age of 18 years are unable to manage and operate accounts autonomously. Banking institutions are not allowed by law to deal with clients under the age of 18 years without the supervision of parents or guardians. Several banks in Egypt offer child products for those that are under 18 years and have the permission and supervision of their parents or guardians. These include: the National Bank of Egypt, Bank Masr and the Housing and Development Bank. Morocco Bank Al-Maghrib Morocco, the central bank of the Kingdom of Morocco, committed itself to the expansion of financial inclusion in the Maya Declaration, which they named a cornerstone of the national financial sector development strategy up to Their aim is to ensure that all people have access to a broad range of financial products and services tailored to their needs; to support innovation in terms of products, services and partnerships; to expand microcredit; to establish consumer protection in order to enhance lender/client relations in a healthy and balanced manner; and to enhance financial education. 288 Through these efforts, the Moroccan Foundation for Financial Education was established and it leads the national strategy for financial education. This was created on January 29, 2013, and is tasked with: promoting principles and good practices in awareness-raising and financial education, establishing financial education as a pillar of financial inclusion policy and fostering national awareness-raising campaigns in order to improve population knowledge of financial risks and ways to avoid them. 289 The Moroccan Foundation intends to focus specifically on children and youth by providing them with a financial training in order to encourage a responsible use of financial services in the future CYFI in cooperation with Egyptian Banking Institute and MasterCard is working on having a pilot project for SchoolBank. 287 Maya Declaration: Commitment made by Bank Al-Maghrib Morocco. Web 19 Nov < 288 Ibid. 289 National Strategy for Financial Education Morocco 290 Ibid. Children, Youth & Finance: Action for Sustainable Outreach 109

110 Currently in Morocco, children and youth under the age of 18 years are unable to manage and operate accounts autonomously. Banking institutions are not allowed by law to deal with clients under the age of 18 years without the supervision of parents or guardians. Palestine The Palestine Monetary Authority and Palestine Capital Market Authority are leading the efforts for forming a national strategy for financial education and financial inclusion that covers all sectors of society, including children and youth, noting that the strategy intersects with financial education and financial literacy. 291 The Ministry of Finance in Palestine is one of the main stakeholders of the national strategy on financial education. Interest on the topic of youth financial capabilities in Palestine is expanding rapidly. The increased involvement of civil society organizations, NGOs and educational institutions are helping to empower financial education initiatives around the country, and some banking and financial topics have been added to the educational curriculum for the 6th grade and 11th grade in order to teach the students the skills and information needed to deal with banks and money. PMA was recently assigned by the Arab Monetary Fund to design a guideline on National strategies for Financial Education and Financial Inclusion not only in Palestine, but also in the MENA region as a whole. The institution also successfully launched the credit registry system, credit scoring system and the bounced check system. Palestine is in the process of drafting a national strategy for financial inclusion as well as policies that would encourage those under the age of 18 to have accounts. 292 A program funded by USAID known as The Expanded and Sustained Access to Financial Services (ESAF) program was a three-year program with the objective to create a more inclusive financial sector in the West Bank and Gaza for Palestinian households and enterprises. 293 This program took a comprehensive approach to improving the financial capability and knowledge of children and youth through initiatives including consumer awareness and financial literacy, microfinance product development, savings promotion, and entrepreneurship. 294 Furthermore, along with Making Cents, an interactive companion curriculum was developed for the Management and Economics course required for all 11th graders in public schools and launched in the school year to 48,000 students Additionally, the ESAF program has supported a microfinance institution to develop youth focused start-up business loan products, provided matched savings grants to 2,000 low income young adults in Gaza, building over $2 million in assets and trained over 2,000 youth in Gaza on financial literacy and life skills, and awarded 550 start-up grants through a business plan competition. 296 Similarly, INJAZ Palestine, a part of the Junior Achievement Worldwide organization, is also working to increase the financial capability ofyouth in Palestine. INJAZ works with schools, colleges, universities, and youth clubs to provide students with access to information and resources that will ensure that they are equipped to wisely manage their money and build wealth. 297 Furthermore, Arab Bank, Palestine has created a new product for children under 18 called "Jeel Al Arabi. The aim of this product is to encourage saving behavior and financial awareness among children and youth. This new account has put together a bundle of value-added benefits designed specially to make saving an exciting experience for kids and a complete peace of mind for the parents. 298 In Palestine, children and youth under the age of 18 years are unable to manage and operate accounts autonomously and by law banking institutions are not allowed to deal with clients under the age of 18 years without the supervision of parents or guardians. 291 Handover and communications with PMA/PCMA+ Capital Market Regulator Forum report. 292 AFI report + Ali Faroun 293 USAID ESAF & Youth Financial Services. Web. 19 Nov < (3).pdf>. 294 Ibid. 295 Ibid. 296 Ibid. 297 INJAZ Palestine. Web. 19 Nov < > Children, Youth & Finance: Action for Sustainable Outreach

111 Children, Youth & Finance: Action for Sustainable Outreach 111

112 14 Children, Youth and Finance: From Momentum to Action

113 Chapter 7 Advancing Economic Citizenship Through the CYFI Network Children, Youth and Finance: From Momentum to Action 15

114 Chapter 7 Advancing Economic Citizenship through the CYFI Network The CYFI Network is comprised of national authorities, civil society organizations, academics and financial institutions. This chapter provides an analysis of the features of their programs and their outreach numbers. It additionally highlights some of the benchmark examples and positive developments that have taken place throughout the previous year. 7.1 Economic Citizenship Education Programs of Civil Society Organizations This first section summarizes all features of those civil society organizations in the CYFI network. Information was collected from 28 civil society partners, who were sent the CYFI Survey on Economic Citizenship Education for Children and Youth, collecting data on educational products for children and youth which focus on the different components of Economic Citizenship Education. The questions follow the rational of the CYFI Education Learning Framework, which can be found in Chapter 5. More details on the different learning outcomes of this framework can be found in Annex D Overview of Program Features Figure 30 Materials Utilized in Programs Axis Title 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: CYFI (2014) 25% 29% Education al Curriculu m 25% 32% Learning Manuals 21% 11% 14% 11% 11% 11% Teacher Training Guides 11% 29% 25% 25% Curriculu m Developm ent Tools Activity Books 25% 7% 29% 14% 4% 0% 0% Games Online Games Online Teaching Resources Teacher Learner Facilitatio n Guide Both 25% 25% 21% 11% 21% 25% 7% 11% 18% 11% Open source 29% 32% 29% 25% 25% 25% 14% 29% 25% 32% Paid 11% 14% 11% 11% 11% 4% 0% 0% 11% 4% 21% 25% 11% 18% 25% 11% 11% 32% 4% Videos 114 Children, Youth & Finance: Action for Sustainable Outreach

115 Figure 30 provides an overview of the type of materials that are used throughout the CYFI Network. In addition, it indicates whether these programs are available for use by payment or as open source. Findings indicate that Learning Manuals, Educational Curricula and Teacher Training Guides are used the most, at 71%, 65% and 61% respectively. Of these materials, around one third is available open source, and no more than 14% are available by payment. Approximately a quarter of the respondents offer a combination of open source and proprietary materials. Curriculum Development Tools, Games, Teacher Learning facilitation Guides and Activity Books are used 47%, 54%, 54% and 59% respectively. A quarter of these three materials are open source. For these three materials, no more than 11 % are proprietary. All Online materials such as Games and Teaching resources are accessible without payment and used 21% and 40% respectively. Videos are used 47% of the time and a third of these are free of charge. Figure 31 ECE Levels in Partner Programs 7% 4% 4% Age 0-5 Age % 29% Age Age 6-14 Age % 4% All Ages N/A Source: CYFI (2014) Figure 31 shows the ages targeted by education providers in the network that responded to the survey. Approximately two thirds of all materials are focused on those aged or on 15 and older, indicating that, still, very few materials are specifically targeting younger children. This conclusion is further confirmed by the fact that only 7% of programs focus on those aged 6 to 14, only 4 % is focused on those aged 6-9 and only 4% is focused on those aged 0-5. In total, almost a quarter targets the complete age range of ECE, from 0 to 18. Despite the evidence presented in Chapter 4 that beneficial results can come when children are exposed to elements of ECE at an early age, many programs in the CYFI network do not yet a significant focus on services for those under the age of 10. More evidence is needed as to why this is the case and organizations should be further encouraged to develop materials specifically aimed at this younger age demographic. Children, Youth & Finance: Action for Sustainable Outreach 115

116 Figure 32 Educational Components in Civil Society Programs 14% All components 4% 7% 11% 64% Financial and Social Financial and Livelihoods Financial N/A Source: CYFI (2014) Results in Figure 32 shows more positive results, namely that almost two thirds of all education survey respondents focus on an integrated approach to Economic Citizenship Education, including elements of financial, social, as well as livelihoods education. What is more, only 7% of the total sample focused exclusively on financial education, which resonates with the findings in Chapter 4 that a multi-pronged approach to improving financial behavior and socioeconomic empowerment, involving social and livelihoods elements, can be quite beneficial to young people. It is also interesting that these results indicate that more financial education programs are combined with social education than with livelihoods education. Even though the evidence on both these combinations are still not complete, it would be relevant to look further into why livelihoods education is somewhat lagging behind or why it is not necessarily seen as a beneficial complement to finance. When we compare the 2014 ECE results with those gathered in 2012, we also see some encouraging developments. In 2012, only 47% of NGOs responding to the survey included all three elements of the ECE framework. This has increased to 64% in the 2014 publication, showing a growth amongst CYFI partners and collaborators in offering holistic ECE throughout the world. The CYFI Secretariat continues to promote the ECE framework throughout the CYFI network and is pleased with how it is being received by education authorities and youth serving organizations Figure 33 to 35 takes a closer look at the specific elements of the three ECE components contained in the educational materials of survey respondents. Overall results show that partners and collaborators most commonly focus on the following learning elements: Financial Education: Planning and Budgeting, Savings behavior, Knowledge of Financial Services Social Education: Leadership, Conflict Resolution, Personal Expression Livelihoods Education: Writing of Business Plans, Employability Skills, Career Mapping. The elements of ECE that we focused on the least were Employer and Employee responsibility, indicating that these are not necessarily seen as key learning topics in livelihoods education. This is surprising given the importance of favorable working conditions for young people and the rise of the Children s Rights and Business Principles within the UN system. 116 Children, Youth & Finance: Action for Sustainable Outreach

117 Figure 33 Financial Education Elements Source: CYFI (2014) Figure 34 Social Education Elements Series Source: CYFI (2014) Children, Youth & Finance: Action for Sustainable Outreach 117

118 Figure 35 Livelihoods Education Elements Series Source: CYFI (2014) Figure 36 and 37 take a closer look at the behavior that the education programs generate in students, family members and teachers. Nearly 60% of children involved in a financial education or ECE program were encouraged to save as part of the program. However, 25 % of respondents reported that students were not encouraged to save. As one of the core objectives of financial education programs, whether linked to social or livelihoods education or not, is to improve financial behavior amongst young people, it is strange that a quarter of the respondents were not encouraging young people to save. Interestingly, 18% of respondents answered not to know whether savings behavior was increased as a result of the program. This lack of data is a key point of concern for CYFI. It remains relevant for programs to track their impact and progress in order to assess success factors or the lack thereof. Similar percentages were found for teachers and family and their encouragement to be engaged in enterprise. A staggering 57% of family and teachers were reported to be engaged in enterprise after the education program of the child. This shows a wider reach of the program elements beyond the traditional target demographic, demonstrating a knock on effect on educators and members of the child s household. Moreover, Figure 38 shows 67% of those programs with a livelihoods component reported that children partake in enterprise behavior after the program, as opposed to 40% who did not receive a livelihoods component. This also suggests that that explicitly learning about enterprise and employment can increase entrepreneurial behavior, but that it is not the only determining factor. 118 Children, Youth & Finance: Action for Sustainable Outreach

119 Figure 36 Children Encouraged to Participate in Social and Financial Enterprise 18% Children encouraged Children not encouraged N/A 25% 57% Source: CYFI (2014) Figure 37 Teachers and Family Encouraged to Save 14% Encouraged to save Not encouraged to save N/A 32% 54% Source: CYFI (2014) Figure 38 Enterprise Behaviors and a Livelihoods Component Livelihoods component No Livelihoods Component 60% 67% 33% 40% Not parttaking in Enterprise Children parttaking in Enterprise Source: CYFI (2014) Children, Youth & Finance: Action for Sustainable Outreach 119

120 Figure 39 Education Programs with Savings Component 18% 21% Formal Savings Component Non-formal Savings Component 61% No Savings Component Source: CYFI (2014) Figure 39 provides a view on how ECE programs are linked to a savings component, in the form of non-formal savings practices (such as a savings group or a classroom money box) and formal savings products (a bank account at a regulated financial service provider). One positive development to highlight is the fact that 82% of all programs reported to include some form of a savings component. This is encouraging as it indicates that the benefits of learning while doing and putting financial literacy lessons into practice are important factors for program designers. This resonates with the increasing evidence that financial education programs, that include an active savings component, could generate more benefits than only transferring financial knowledge. Still, only about a quarter of those savings components were reported to be a formal savings product in the form of a bank account at a financial institution. This may be attributed to the general perception that introducing children to the financial system may not be beneficial, or may be attributed to the fact that safe banking products for young people were not available in the near surroundings of the financial educational programs. Further research should be taken into why non-formal savings practices are being favored over formal methods. Figure 40 Savings Component and Enterprise Behavior Non-formal Savings Component Formal Savings Component 41% 20% 59% 80% Not parttaking in Enterprise Children parttaking in Enterprise Source: CYFI (2014) 120 Children, Youth & Finance: Action for Sustainable Outreach

121 Last, Figure 40 provides an overview of the link between this savings component and enterprise behavior. It appears that 80% of those programs that included a formal savings component encouraged children to save, as opposed to 59% of those programs that include a non-formal savings product. The skills and attitudes that children learn when engaging with the formal financial sector may well be seen as a benefit, if this translates into enterprise behavior. Even though the size of this sample does not allow us to draw any conclusions from these findings, it is worth looking into reasons why young people involved in formal savings appear to be more inclined to participate in enterprise Best Practices in ECE related programming from CYFI Partners & Collaborators This section aims to provide an overview of the promising practices in bringing ECE to children and youth through both formal and non-formal educators. Camfed International: Financial education for young women in rural Zambia is a project financed by the Financial Education Fund and implemented by the Camfed Association. Through a peer educator model, the project aims to reach a large number of young women school leavers in eight districts in rural Zambia, by training a small number of financial education peer educators, who will in turn train other women directly in each district. The project aims at reaching over 8,000 low income women in rural Zambia. Twenty four Core Trainers are responsible for training 800 women and from them identifying 160 Peer Educators (20 in each of 8 districts) who will in turn train a large number of other young women in one day financial education workshops. 299 Children International: Children International's Financial and Social Education program, based on curriculum from Aflatoun, is designed to give participants a working knowledge about finances and resource management and help them develop advanced social skills. The program achieves this through two sets of curriculum one designed for young children and the other for youth ages 12 to 19. Their Financial and Social Education program for children teaches financial skills like managing savings and creating budgets and understanding of their basic rights and responsibilities through child-friendly activities, Educational games, Interactive workshops. 300 International Youth Foundation: YouthMap, is a 4-year program funded by USAID - Africa Bureau Education Division providing holistic, cross-sector assessments on current youth programming, tailored to each country context and USAID Mission interest. This is designed to be a snapshot of youth circumstances, not a statistically significant census of young people nationally and an innovation fund to catalyze evidence-based youth programming that engages stakeholders. The program was led by an advisory board of 12 members from government, civil society, and the private sector. This meant that there were champions in each organization with links between the business case for engaging youth and policy innovations. Other stakeholders, such as the employers of the youth, had a voice in the selection, provided a mentor or supervisor and even made contributions to stipends. IYF Programs provide at-risk youth with training and life skills, employability skills and jobs, and opportunities to improve their communities. They work with and through local NGOs, governments, and the private sector to achieve scale and sustainability. To date, 75% of the participants in IYF programs have found employment following their internships. Some of the challenges faced by IYF was in finding clear incentives to economically empower youth, connect them with private sector stakeholders and provide access to formal financial services. 301 MEDA: MEDA s YouthInvest program was implemented in Morocco from , and it facilitated greater access to appropriate financial services for youth through financial institution partners. MEDA is aimed to develop innovative financial products and services tailored to the needs of economically active youth. 302 The project also built demand for these products with financial education and entrepreneurship training for youth. The program involved 50,000 youths, most of whom were between 15 and 25 and living in rural areas. YouthInvest staff collected data on the results of the program to encourage financial institutions to offer youth-appropriate loans and savings accounts to program participants Social and financial education. (n.d.) Retrieved December 1, 2014, from Reinsch, M. and The e-mfp Youth Financial Inclusion Action Group (2012) Youth Financial Inclusion: Promising Examples For Achieving Youth Economic Empowerment. Web. 19 Nov < >. 303 MEDA, Youth Invest Praxis Series, Children, Youth & Finance: Action for Sustainable Outreach 121

122 Mercy Corps: In response to the needs of adolescent girls in Tajikistan, Mercy Corps adapted Aflateen a school-based curriculum that brings social and financial education to teenagers and included an extended focus on reproductive health, family planning and HIV. The result was Aflateen+. The program targeted girls aged 14 to 18 in secondary schools across two districts, Mastchoh and Hisor, and consisted of 10 peer-to-peer training sessions delivered over eight weeks (40 hours total), with a refreshment training conducted in 2013 for reinforcement. The Aflateen+ program, targeting adolescent girls aged 14 to 18 in Tajikistan, demonstrated significant positive impact on girls knowledge of reproductive health and HIV, their sense of agency, their frequency of saving, their propensity towards entrepreneurship and their plans for pursuing a future career. 304 The Money Charity: Based in the UK, the Money Charity works with young people in 2 main categories: 1) Direct delivery in schools and colleges through their Money workshops and 2) distribution of the Student Money Manual which is their essential guide to all things related to student finance. Each year it reaches over 400,000 young people in the UK. The Student Money manual is the essential guide to student finance and managing money at university. The Moneymanual is written and designed to appeal specifically to the target audience of first time undergraduate students and their workshops are delivered by a combination of employee volunteers and workshop consultants, who make learning about money fun and engaging. 305 MyBnk: Based in the UK, MyBnk directly delivers financial and enterprise education programs to young people aged years. They have a network of local, national and global trainers, skilled and certified to deliver the MyBnk 'SUPER' (Specialist, Unique, Participatory, Effective & Relevant) educational program. MyBnk takes a holistic approach to education in line with the ECE framework methodology, catering for audio, visual and kinesthetic learners and linking topics to young people s lives. The trainers use real life case studies, colorful resources, pop culture reference, games and videos that enable students to explore and form their own opinions regarding their relationship with money. A special feature of all of their programs is that they are built in collaboration with young people themselves, through MyBnk s Youth Advisory Panel. 306 My finance Coach: My Finance Coach uses interactive, practical examples and exercises to help children and young people learn about business and finances in a way that is relevant to their everyday lives. The My Finance Coach program is constantly being updated and includes both in-school and extracurricular formats and teacher training components at a national level in Germany. My Finance Coach provides teaching materials that are in line with the curriculum and that have been prepared by education experts in cooperation with German school book publishers Klett MINT and Universum. My Finance Coach also sends specially trained employees from partner companies into schools to present training units as Finance Coaches. 307 PAU Education- BBVA partnership: PAU Education delivers financial education in different secondary schools in Spain and Portugal. Valores de Futuro is a financial education program that provides teachers and students (aged 6 to 15) with an original and simple pedagogical approach to discuss the role of money and acquire money skills in schools. It proposes a comprehensive approach in the classroom that links financial education, entrepreneurship education and citizenship education. Valores de Futuro provides a strong example of a partnership formed between financial institution and civil society organizations on the design and delivery of financial education programming for children and youth. Schools are encouraged to develop a youth-led Savings Program and receive the support of more than 600 BBVA employee volunteers, who become the schools financial advisers, give workshops and help schools organize their School Savings Scheme. 308 Population Council: Safe and Smart Savings Products for Vulnerable Adolescent Girls in Kenya and Uganda provides individual savings accounts for adolescent girls along with financial education and social activities through Safe Spaces clubs, generally comprised of 25 to 30 girls led by female mentors aged The main project components are individual savings account (each girl receives a savings account, photo ID, T-shirt, and lockable home bank), financial education on saving and budgeting, setting financial goals, and earning money. The pilot phase of the program reached My Finance Coach. Sparking interest, imparting knowledge and boosting skills. Retrieved December 1, 2014, from Children, Youth & Finance: Action for Sustainable Outreach

123 more than 12,000 girls in Kenya and Uganda. The Council is examining the effect of the program on a number of outcomes. 309 Spark: Spark, an organization based in Amsterdam and specializing in entrepreneurship education in conflict regions, has embarked on a new project in South Sudan, Burundi and the Occupied Palestinian Territories called the Youth Engagement Program. YEP focuses on strengthening capacities of youth, and stakeholder organizations, developing leadership skills and creating youth networks. SPARK and its local partners are also initiating advocacy activities and creating dialogue among youth and policy makers about improving the socioeconomic position of youth Best Practices in ECE related Educational Materials from Partners & Collaborators Aflatoun Name of resource: Aflatot Target group: 3-7 years old children, for in- and out-of-school teaching Description: The material is a curriculum on Social and Financial Education for Early Childhood Learning. It is a strong example of an integrated curriculum incorporating the 3 components of Economic Citizenship Education Financial Education, Social and Livelihoods Education. As such, it is one of the few comprehensive materials existing for this young age group. A definite strength of Aflatot is the methodology it uses non-formal education and participant-centred learning. The material involves parents in an intense way which is instrumental for the achievement of the learning outcomes. Link: Aflatoun Name of resource: Aflateen Target group: years old youth Description: Aflateen is a Social and Financial Education curriculum designed for educators, facilitators or youth peer-topeer mentors. It offers a strong model of financial and social education, providing facilitators with a clear manual and an innovative and engaging learning framework for educating youth to be active and thoughtful economic citizens. Aflateen is using non-formal education methodology which puts the participants in the center and in control of their learning process. The material is adapted for youth in different regions and has been translated into over 30 languages and contextualized for over 60 countries. Aflateen is currently being expanded with an e-learning platform Aflateen Digital which builds up on young people s natural interest in digital media and uses the power of playing and sharing to deliver financial and social skills. Link: Canadian Foundation for Economic Education (CFEE) Name of resource: Money and Youth: A Guide to Financial Literacy Target group: youth aged 15+ Description: The Money and Youth Curriculum is a good information resource for young people aged 15+ which offers wide-ranging information on financial literacy components. The curriculum offers a comprehensive framework for the development and practicing of entrepreneurship skills for youth as well as for setting career goals and ways to achieve them. In this sense, Money and Youth is contributing to the economic independence of youth aged 15+ by promoting their money management skills. The Money and Youth Curriculum is interesting for organisations looking to integrate Livelihoods and Financial Education into their curricula. Moreover, complete modules or separate activities from the Curriculum could be incorporated into regular school subjects, to diversify content and teaching methods. Link: International Youth Foundation (IYF) & Microsoft Name of resource: Build Your Business Target group: young people aged 16-35, either in or out of school, in formal or informal training programmes Description: Build Your Business is a micro- and small-scale business development online training course. It includes interactive role-plays, online financial tools & calculators, games, videos. It introduces young people to the topic and 309 Sewall-Menon, J., Bruce, J. (n.d.). The cost of reaching the most disandvantaged girls (progammatic evidence from Egypt, Ethiopia, Guatemala, Kenya, South Africa and Uganda. Retrieved December 1, 2014, from Children, Youth & Finance: Action for Sustainable Outreach 123

124 breaks down complex business skills from learning how to research the market to developing an effective sales pitch and obtaining start-up capital. The material is meant both as a self-study resource for aspiring entrepreneurs and as a blended learning strategy for trainers who wish to deliver a workshop. As such Link: Microfinance Opportunities, Freedom From Hunger Name of resource: Young people: Your Money, Your Future Target group: young people aged years Description: The curriculum is a complete training course to prepare adolescents and young people for the financial responsibilities of adulthood, providing them with the knowledge and skills to transition from economic dependence to independence. The material is composed of 4 main chapters with 23 learning sections which are interactive, engaging participants though different kind of pedagogical tools such as fun games, exercises, role playing, discussions, summary of contents and questions and answers. The curriculum provides many examples from everyday life that youth should find easy to understand. Trainers and educators would experience the materials as a great aid for their work. Link: The Money Charity Name of resource: The Student Money manual Target group: 1 st year (undergraduates) university students in the UK Description: The Student Money manual is the essential guide to student finance and managing money while at university. It is aimed at first year students and it covers content around everyday expenses, budgeting, tuition fees, getting and repaying student loans, earning money via student jobs, saving in innovative ways. It is accompanied by digital content in the form of tips and articles on The Money Charity website. The language it is written in is very appealing to the target group and takes a UK student s reality as a starting point. Link: My Finance Coach (MFC) Name of resource: Economic Education Target group: Secondary School students, Grades 5-10 Description: My Finance Coach is offering financial and economic education workshops in schools. MFC has developed Facilitator Guidelines for the 7 Training Modules. The resource is complete in the components financial and social education and prepares youth to become independent economic citizens and manage their financials responsibly. The Facilitator Guidelines are detailed lesson plans that help schools and teachers who wish to integrate economic and financial education into their regular curriculum subjects and diversify content. The MFC workshops are accompanied by the mobile app Money Manager that helps youth track their money use, stay up-to-date with the daily changes in their income and expenditure and allocate certain amounts to their savings account. The app also shows you what your biggest expenses are, as well as keeping records of your spending. Within the CYFI partner network, the MFC material is unique in promoting the impossibility and avoidance of debt. Like this, it makes a significant contribution to a change in the financial behaviour of youth. Link: PricewaterhouseCoopers Name of resource: Earn Your Future Target group: children and youth in grades K-12 Description: The curriculum is designed for students in grades K-12. Module topics include: Saving & Investing, Career Exploration, Planning & Money Management, as well as lessons focused on environmental sustainability. The curriculum is composed of easy-to-follow lesson plans accompanied by interactive handouts. It provides students and educators with free and easy access to financial literacy education. We want educators to download it, teach it, and share it. Link: VISA Name of resource: Practical Money Skills for Life Target group: children from kindergarten age to college youth 124 Children, Youth & Finance: Action for Sustainable Outreach

125 Description: This is an educational material on personal finances consisting of 6 modules: Budget Basics, Credit Card Basics, Credit History, Debit Card Basics, Identity Theft, Prepaid Card Basics. As such, it is a great resource to prepare individuals to manage their finances, take independent decisions and banking products in particular. Practical Money Skills for Life uses various methods such as discussions, games, multiple-choice quizzes and develops the planning and presentation skills of youth. Link: Conclusions Based on the information presented above, the following conclusions can be made: There is a general increase in holistic approaches to financial education within the CYFI network, with a significant proportion of programs focusing on all three components of the Economic Citizenship Education framework. CYFI is pleased to see the increase in 2014 in partners and collaborators reporting that they are covering elements of financial, social and livelihoods education in their youth programming. Surprisingly, the results show that more financial education programs are combined with social education than with livelihoods education. This contradicts previously help assumptions that entrepreneurship elements would be a more logical complement to traditional financial literacy. Even though the evidence on both these combinations is still not complete, it would be useful to look further into why livelihoods education is somewhat lagging behind or why it is not necessarily seen as a beneficial complement to finance. The results show that a vast majority of the survey respondents include a financial access component linked to their educational programming. However, the results indicate that there is still a considerable preference for non-formal savings over saving at formal, regulated financial institutions. This can be attributed to the ease of non-formal savings in lights of the many barriers to formal access described in Chapter 5. Additional research should be conducted into reasons why youth ECE programming continues to show a preference for non-formal savings in situations where the barriers to formal access are relatively low. A link can be made in the survey respondents that indicated that their education programs contained a savings component, or elements of entrepreneurship education, and the number of youth beneficiaries that were participating in enterprise. This supports CYFI s theory of change that financial access plus ECE leads to greater economic citizenship and sustainable livelihoods for children and youth. It was also encouraging to see evidence of the knock on effects of financial literacy and entrepreneurship skills building in the teachers and family members of young people participating in ECE related programs. This supports the believe that ECE, when delivered effectively to children and youth, can have a wider impact on the household and the community Children, Youth & Finance: Action for Sustainable Outreach 125

126 7.2 Financial Institutions This section summarizes features of financial institutions in the CYFI network that responded to our CYFI banking survey. The following information was collected from 18 financial institution partners, who were carefully selected based on their geographic outreach and the bank accounts which are currently being offered to children and youth. The data presented explores their features as they relate to the Child and Youth Friendly Banking Product criteria. These criteria will be discussed throughout the chapter. Figure 41 Availability of Under 18 Accounts: The following Controls provide assurance that Banking Products are available for and accessible to all children and youth. 6% No Yes 94% Source: CYFI (2014) Banking Products should be available for and accessible to all children and youth, ensuring that they gain hands-on experience with the formal financial system. Children and youth then have the opportunity to use safe financial services through which to save their money and conduct banking transactions. Figure 40 shows that only 6% of the financial institutions that responded offer banking products for clients under the age of 18. Financial institutions that proactively offer child and youth friendly banking accounts to previously unbanked children and youth not only offer a service to children of their existing clients, but they also offer economic and social opportunities to otherwise excluded groups As indicated in Figure 41, although financial institutions in our sample do appear to offer both current and savings accounts to children, they primarily offer savings accounts (67%) which can be opened by the child itself. The age on which the child can open the account in his or her own name differs per bank and per country. As described in Chapter 5, this age is set out in national banking regulation. In most cases, the child can open an account at age 18 independently, and below that age onlywith the assistance of a legal guardian. In other countries, such as Mongolia and Uruguay, financial institutions reported the age to be as young as 14.. Interestingly, in Ethiopia, working children can open the account from the age of 14, but if they are not working they are required to have a legal guardian present. As a result of this policy, PEACE and ACSI in Ethiopia allow children aged 14 to 19 to open and manage an account is they produce either a formal labour contract or a Kebele ID, a special ID offered by the local village or ward councils which serves as a proof of employment UNCDF, Policy Opportunities and Constraints to Access Youth Financial Services, Children, Youth & Finance: Action for Sustainable Outreach

127 Figure 41 Type of Accounts offered that under 18s can open 11% 22% N/A Savings Account 67% Savings Account & Current Account Source: CYFI (2014) Figure 42 Control of the Account Holder: The following Controls provide assurance that children and youth have maximum control over their Banking Product. 17% 44% 17% Full Access Full Access & Partial Access N/A Partial Access 22% Source: CYFI (2014) Figure 42 further highlights whether children can operate on their accounts independently. It is not surprising that, for the most part, children and youth are reported to not have full access to their own accounts. Partial access to accounts stands at 44% whereas full access is merely 17%. In order for children and youth to become increasingly financially capabile it is important for them to have maximum access to their accounts. Many financial institution refer to this as an obstacle in providing children and youth with appropriate products. Looking into the details of control, again, aside from a few benchmark examples mentioned above, control over the account and making transactions can only be done with the permission of a guardian under 18. In cases such as Ethiopia and Mongolia, this age is 14 and Colombia, even in this case, it is 12. When possible, children and youth should be allowed to open and operate their own accounts independently. In cases where there are legal limitations to the level of control by the child, the Financial Institution is encouraged to seek innovative solutions to empower children and youth. An examples of such solutions could include requiring signatures from both the adult account holder and the child. Children, Youth & Finance: Action for Sustainable Outreach 127

128 Figure 43 Educational Component Linked to Account: The following Control provides assurance that children and youth know how to use Banking Products efficiently and responsibly. 17% No Yes 83% Source: CYFI (2014) Figure 43 shows that 83% of financial institutions offer an educational components with their banking product. Educational components are an essential aspect of banking products, as they allow children and youth to understand financial products and become financially responsible. For financial institutions it is better to have educated consumers that are capable of managing their products, and the educational components ensures that. Futhermore, it is often found that financial products in tandem with an educational component provide children and youth with more benefits as opposed to providing each component individually (see chapter 4 for more on this evdience). Even though the percetage of banks that report to include this component in relatively high, it is important to note that its is offered in a great variety of delivery methods. The responses rang from publishing brochures in child and youth friendly Language to supporting a financial education program. Figure 44 Tracking of Product Use: The following Control provide assurance that the satisfaction of children and youth is monitored. 6% 11% N/A No Yes 83% Source: CYFI (2014) 128 Children, Youth & Finance: Action for Sustainable Outreach

129 Figure 44 shows that banking institutions typically track the product use of their clients under 18 years of age (83%). This is necessary because banks want to measure customer satisfaction and ensure that their products are catering to all of the financial needs of their clients. The satisfaction of customers using the Banking Product is vital to its continued success. To this end, Financial Institutions must periodically assess children and youth satisfaction with the Banking Product, the FinancialInstitution s service, communication with young clients, and whether the communication is done in a comprehensive and youth-friendly manner. Figure 45 Staff Training for Dealing with Young People 6% 33% N/A No Yes 61% Source: CYFI (2014) The CYFI Secretariat recommends that financial institutions integrate child and youth savings into their regular operations and therefore provide staff training to communicate with minors on financial products and financial issues. Results in Figure 45 show that around 61% of the banks that completed the survey were actively training their staff in this regard. The training is utilized in order to ensure that the staff at the various banks have the 'buy-in' and 'know-how' to effectively serve young clients. Children, Youth & Finance: Action for Sustainable Outreach 129

130 Figure 46 Child and Youth Friendly Banking Principles. 7. Do you work (or together with external organizations) on rolling out effective, marketingfree financial education. If 1 please explain 6. Does your bank track satisfaction of children with their account? 50% 56% 5. Does your bank offer positive. incentives to save to those under the age of 18? If 1 what are they: 72% 4. Does the child receive interest on this account? 94% 3. Does the account require a minimum deposit? 61% 2. Are there any other costs involved in the opening or usage account? 22% 1. Is there the possibility for an overdraft on the account? 0% Source: CYFI (2014) CYFI promotes the Children's Rights and Business Principles (CRBP) and the CYFI Child and Youth Friendly Banking Principles, to help financial institutions determine whether they are serving young clients in a responsible manner. Figure 46 provides an overview of how the financial institutions in the network adhere to these principles. First, it highlights that no banks allow for overdraft on their products, which is significant as it protects children and youth from difficulties associated with mismanaging money. Terms and conditions for a particular Banking Product should indicate that an account cannot be overdrawn under any circumstances. Additionally, 22% have costs involved when opening an account, which varies from a monthly fee, overdraft costs and transaction costs. CYFI encourages banks to have minimum costs for young people in opening and operating their accounts, so it is encouraging that 78 % of the respondents do not require any costs. CYFI recommends that the total cost of using a Banking Product (including both incurred and tax costs) for young clients should be less than or equal to the revenues (e.g. interest) received from such an account. 61% of respondents require a minimum deposit on their accounts for minors. Even though a minimum deposit seems a logical requirement to open an account, CYFI would like to see minimum deposits nullified. In addition, 94% of respondents provides young customers with interest on their savings, which CYFI considers a requirement when dealing with young clients. To facilitate children and youth making the move from non-formal to formal savings systems, banks should provide financial incentives in the form of higher interest rates and lower fees, as compared to average market rates. While it is imperative that children understand the costs of having a bank account, building their confidence and their willingness to engage in the formal financial system is also quite important. 72% of respondents indicate that they to give young customers positive incentives when they save on their account. This takes the form of increased interest, souvenirs upon account opening, gifts, promotions and competitions. This helps to facilitate a friendly, trusting relationship between the young client and the bank, breaking down psychological or sociological barriers to financial access. While CYFI supports incentives being given to increase account uptake and 130 Children, Youth & Finance: Action for Sustainable Outreach