1 Supporting the financial capability of young people. pfeg Forum - October 2012 Steve Stillwell.

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Supporting the financial capability of

young people.

pfeg Forum - October 2012

Steve Stillwell

The three strands of our work

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Financial Capability of Young People

Specific Debt Advice

Generic Money Advice

Strategic oversight role

• Our independence means Money Advice Service is well placed to provide

strategic leadership and oversight

• First stage announced in November 2011.

• Two elements:

• Map the landscape of financial education programmes funded by financial

services industry – who is doing what, where and to whom

• Commissioned a literature review about what is known about evidence of

impact of financial education programmes UK and worldwide Identify

learning from other areas that can be applied, e.g. health/sex

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Insights from landscape

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Not compulsory so only ‘Mapping and gapping’ with caveats but broad UK picture from 14 organisations:

•UK CSR spend in excess of £25m 11/12

•An increase on 10/11 but same % of total CSR spend

•36 different programmes

•Most number of programmes and spend in 11+ age range

•Of information given 56% of programmes focused on ‘numbers engaged and participating’ as main performance indicators. 20% focused on short/long- term behavioral change.

Insight from impact literature review

• Lack of robust evidence - urgent need for Key Performance Indicators

• Attitudes are formed early (5-12) – need to engage this age group more

• Interventions within a broader family framework have the potential for long-term behaviour change – need to understand dynamics here

• Targeted interventions for specific ‘at risk’ groups.

• We need to better understand – and better utilise - the route to ‘financial autonomy’

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The journey

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Be smarter in using intervention channels

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• School/college based interventions

• High frequency/low intensity

• Focus on knowledge and skills but important to reinforce good behaviours and habits

• Group/community interventions ( parents and peers)

• Medium frequency and intensity

• Engagement through parents/carers and peers

• Give and reinforce broad messages from school based interventions

•Individual interventions

• Low frequency/high intensity

• Young people most at risk or exhibiting ‘risky’ behaviour

Goals for Money Advice Service over next 12-18 months

•Up-date Effective Practice Guide for Schools

•Agreement on what 5 year strategy will be – how will things be different

•Establish a set of measurable and robust key performance indicators

•As part of our research strategy , measure the financial capability of 15/16 year olds

•Explore potential of ‘amplifying’ My Money Week’.

•Develop a voluntary ‘code of practice’ as an agreed common framework for the delivery and measurement of industry funded programmes

•Understand, share and promote good practice in family learning to help parents feel more confident in talking about money matters to their children

Money Lives

• Year-long programme of observational research, supplemented with

quantitative research.

• Covers whole year to capture how people’s attitudes, motivations and

opportunities change according to different influences through the year (eg

effect of Christmas or holiday spending; changing reliance on credit)

• Builds on the research done on the original definition and baseline survey.

• Follows 72 families and an additional group 15 year old cohort

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