NATIONAL STRATEGIES FOR FINANCIAL

OECD/INFE Policy Handbook

NATIONAL STRATEGIES FOR FINANCIAL EDUCATION

OECD/INFE POLICY HANDBOOK

This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

© OECD 2015 2 FOREWORD

The work on national strategies for financial education was launched in 2009 as an integral part of the OECD project on financial education, as a complement to financial consumer protection and inclusion measures with a view to strengthening financial stability and development. It was particularly meant as a new policy tool to counter some of the lasting effects of the 2008 global financial crisis, while offering solutions to governments designing and implementing financial education policies. The impressive increase in the number of governments which have adopted such nationally co-ordinated approaches to financial education testifies to its significance: today almost 60 economies are implementing national strategies for financial education worldwide, compared to a handful in 2009.

The relevance of national strategies for financial education is further confirmed by the attention of global fora. At their Summit in Los Cabos in 2012, G20 Leaders endorsed the High-Level Principles on National Strategies for Financial Education developed by the OECD International Network on Financial Education (OECD/INFE), thereby also recognising the importance of these co-ordinated policy approaches to financial education. They reiterated their support for these policy endeavours at their meeting in St. Petersburg in 2013 and called the OECD/INFE to develop a Policy Handbook on the Implementation of National Strategies for Financial Education.

This Policy Handbook responds to that call and also represents the culmination of the work of the OECD on national strategies. The OECD is therefore pleased to provide this important policy tool, which also highlights the main trends in national strategies worldwide. The Policy Handbook is expected to particularly support governments and public authorities in developed and emerging economies in addressing each challenge in the implementation of national strategies. To do so, the Policy Handbook offers an analysis of relevant case studies from economies at different levels of development, shares key lessons learnt from countries with experience in implementing national strategies, highlights effective practices and provides a checklist for action.

The Policy Handbook complements other analytical tools and policy instruments developed by the OECD/INFE on financial education including the collection of qualitative and quantitative evidence, work on various target audiences’ needs, as well as the role of key stakeholders in financial education with the Guidelines for the Involvement of Private and Not-for-profit Stakeholders in Financial Education also submitted to G20 last year.

The Policy Handbook was developed through the OECD/INFE and its Expert Subgroup on National Strategies for Financial Education starting at the OECD/INFE technical meeting in Istanbul, Turkey, in May 2014. It was elaborated through the OECD/INFE, now spanning over 110 economies, and thanks to the direct contribution of over 65 OECD/INFE member economies. It went through an iterative and thorough development process leading to its approval by the OECD/INFE Technical Committee, the OECD and Private Committee and the OECD Financial Markets Committee in July/August 2015. It has been transmitted to and welcomed by the Global Partnership on Financial Inclusion (GPFI) at their September 2015 meetings in Antalya, Turkey. It is now shared with G20 Leaders at their 15 November Summit in Antalya. It will then be made publically available for governments and other stakeholders.

We believe this Policy Handbook will contribute to increase the effectiveness of national strategies for financial education worldwide, and ultimately help individuals and households navigating the challenges and opportunities of today’s financial markets thereby improving their financial wellbeing.

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4 TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 7

CHAPTER 1. OVERVIEW OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION ...... 11

CHAPTER 2. DEVELOPING A DIAGNOSIS TO INFORM THE NATIONAL STRATEGY ...... 19

CHAPTER 3. ESTABLISHING INSTITUTIONAL AND GOVERNING ARRANGEMENTS: THE ROLE OF STAKEHOLDERS IN THE NATIONAL STRATEGY ...... 37

CHAPTER 4. SETTING AND ACHIEVING OBJECTIVES, EVALUATING AND FUNDING THE NATIONAL STRATEGY ...... 65

CHAPTER 5. ENSURING EFFECTIVE AND INNOVATIVE PROVISION OF FINANCIAL EDUCATION ...... 79

REFERENCES ...... 117

ANNEX 1 CHECKLIST FOR THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION ...... 121

ANNEX 2 OECD/INFE HIGH-LEVEL PRINCIPLES ON NATIONAL STRATEGIES FOR FINANCIAL EDUCATION ...... 135

ANNEX 3 OECD/INFE GUIDELINES FOR PRIVATE AND NOT-FOR-PROFIT STAKEHOLDERS IN FINANCIAL EDUCATION ...... 145

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6 EXECUTIVE SUMMARY

Within a fast evolving financial landscape where access to financial services is made easier while more risks are being transferred to citizens, financial literacy has become a key life skill for individuals as well as micro and small businesses. Financial education can help enhance financial literacy by increasing financial knowledge, skills and attitudes. In turn, this can contribute to individuals’ (including vulnerable and low income) participation in financial, economic and social life as well as to their financial well-being. As a complement to financial inclusion and financial consumer protection, financial education is also important to restore confidence and trust in financial markets, and can support financial stability. G20 Leaders have recognised the important role of financial education policies notably by endorsing in 2012 the OECD International Network for Financial Education (OECD/INFE) High-level Principles on National Strategies for Financial Education. These Principles provide international guidance to policy makers with a view to developing evidence-based, co-ordinated and tailored approaches to financial education, both in emerging markets and more advanced economies.

Today, 59 economies worldwide are implementing national strategies using guidance from the Principles, a number that has more than doubled in less than five years.

The experiences of these countries have highlighted a number of challenges with respect to the implementation of these Principles and related strategies, which this Policy Handbook notably addresses. The Policy Handbook responds to a call by G20 Leaders to the OECD/INFE in September 2013 and complements the 2012 Principles by supporting their implementation in interested countries. It is also designed to follow up on a series of products developed by the OECD/INFE for delivery to the G20, in particular the G20/OECD publication on the advances in national strategies in G20 economies released in 2013 and the OECD/INFE Guidelines on Private and Not-for-profit Stakeholders in Financial Education transmitted to the G20 in 2014.

This Policy Handbook benefited from the experience of the more than 110 member economies of the OECD/INFE, and with direct contributions from over 65