- Context
- The study
- Key findings
- Points to consider
Context
Financial literacy is becoming increasingly important as access to financial services and products becomes easier and the responsibility for financial decision-making is increasingly transferred to the individual. Financial education can increase financial literacy, as well as financial knowledge, attitudes and skills. This can enhance individual participation in economic and social life, as well as increasing financial wellbeing. Financial education can also restore confidence and trust in the wider economy and financial regulators, in turn supporting financial stability.
The study
At the time of publication of this report, 59 economies worldwide had implemented a national financial education strategy using guidelines from the OECD/INFE (International Gateway for Financial Education) high-level principles on national strategies for financial education. This policy handbook describes the experiences of these countries and their economies, and examines the challenges that the countries have faced in implementing the strategies.
This policy handbook collected expertise and insight into national financial education strategies from more than 110 member economies of the OECD/INFE. Based on an overview of trends, patterns and contrasts in the design and implementation of these national strategies, the handbook isolates and offers insight into the main challenges, indicates potential solutions, and suggests the key lessons that have been learnt in the implementation of national strategies to date.
Key findings
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Developing an approach to informing a national strategy:
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Measurement of the population’s needs : 48 economies have or are in the process of conducting baseline surveys to inform evidence-based policies and programmes. Thirty-one of these economies are using toolkits such as the OECD/INFE toolkit to measure financial literacy and inclusion. However, the participation of more countries is needed in international data collection to increase the availability of cross-country research and evidence.
- Existing surveys increasingly include behavioural and attitudinal elements and capture indications of individual financial wellbeing. However, only a small number of countries have implemented longitudinal surveys to look at changes within individual consumer’s behaviour over time.
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Mapping exercises : Reviews and evaluations of existing financial education initiatives have taken place in 40 economies. These gather invaluable evidence that can be useful for the implementation of national strategies in both the country/economy in question, and in similar economies.
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Establishing institutional and governing arrangements:
- Economies with resources set-aside for financial education policies are still rare, though the number of national institutions with a mandate for financial education is increasing. These mandates are important for designing strategies that are more financially sustainable, and more efficient in achieving behavioural change.
- Governance structures are different in each economy, though it is increasingly common for strategies to be implemented with contributions from the private sector, in the form of both capital and expertise. However, the role of private stakeholders does of course introduce potential conflicts of interest, as well as risking uncoordinated initiatives within an economy.
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Setting objectives, evaluating and funding:
- Roadmaps and action plans for national strategies should be evidence-based, and based on market or survey data.
- The number of evaluations of national schemes is rising but limited. However, national strategies are increasingly assessed providing a growing evidence base for what works relating to national financial education strategies.
- The cost of implementing national strategies is relatively small compared to other public policies. However, long-term planning is needed to effectively budget for the financial education needs of a population.
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Effective and innovative provision of financial education:
- The report offers several recommendations for ensuring effective financial education strategies:
- Enabling access to information and advice through a range of channels (e.g. websites, awareness campaigns, online toolkits, etc)
- Recognising that timing and location is unique to each strategy
- Taking advantage of existing learning environments and networks
- Supporting individual engagement and decision-making
- Seeing programme evaluations as a vital component of each strategy.
Points to consider
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Relevance:
- This report is relevant to all stakeholders and policymakers with an interest in implementing and modifying national strategies for financial education.
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Generalisability/ transferability:
- As is implicit in the report, each strategy is unique to the economy to which it applies. However, general learning points and challenges can be transferable to other countries when implementing and modifying national financial education strategies.
Full report
National strategies for financial education: policy handbook - full report