OECD SPECIAL WORKSHOP ON FINANCIAL EDUCATION FOR … record WS2 - Ma… · Ms. Sue Lewis, STLC Consultants, UK: stressed that financial education is most effective when it is compulsory

SUMMARY RECORD

OECD SPECIAL WORKSHOP ON FINANCIAL EDUCATION FOR YOUTH AND IN SCHOOLS

EVIDENCE-BASED FINANCIAL LITERACY POLICIES FOR YOUTH: IMPLICATIONS OF THE 2012 PISA FINANCIAL LITERACY EXERCISE

7 May 2012 Madrid, Spain

Sponsored and hosted by BBVA at Campus BBVA

For further information, please contact Adele Atkinson [Tel: +33 1 45 24 78 64; Fax: +33 1 44 30 63 08; Email: [email protected]] or Flore-Anne Messy Tel: +33 1 45 24 96 56; Fax: +33 1 44 30 63 08; Email: [email protected]

EVIDENCE-BASED FINANCIAL LITERACY POLICIES FOR YOUTH: IMPLICATIONS OF THE 2012 PISA FINANCIAL LITERACY EXERCISE

1. Introduction

This workshop was convened in order to draw together policy makers and researchers to share research related to financial education of youth and in schools, and to discuss the development of the analysis of the Financial Literacy Assessment option within the OECD Programme of International Student Assessment (PISA) in 2012.

The workshop was arranged by the Financial Education and Consumer Protection Unit within the OECD Financial Affairs Division and hosted by BBVA at their training campus near Madrid, Spain.

2. Introductory remarks

Ms. Annamaria Lusardi, Professor of Economics at George Washington University School of Business, USA, Chair of the PISA Financial Literacy Expert Group, moderated the workshop and provided brief, introductory remarks to describe the focus of the workshop and expected outcomes (see agenda in Annex 1).

Each participant introduced themselves and briefly explained their interest in financial education in schools and the PISA exercise1. Several participants reported that they were attending the workshop in order to:

Consider whether their country should participate in future waves of the PISA financial literacy assessment and find out what is involved

Hear about experiences in other countries that could be applied in their own circumstances

During the introductions, participants indicated that the data collected through PISA would be of interest in their country, whether or not they had participated in the exercise. They saw PISA financial literacy as an excellent opportunity to promote financial literacy to Ministries of Education that have not yet started to incorporate it within the curriculum; a way of keeping up the momentum in countries currently trying to implement national strategies for financial education or include financial education in the curriculum; and an unrivalled source of information about current levels of financial literacy and changes over time (through repeated measures).

Participants would be interested to see differences in levels of financial literacy by current behaviour and socio-demographic factors, including gender, and to explore the extent to which professional development influences results.

1. For a full list of participants see Annex 3.

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3. Key presentation

Ms. Flore-Anne Messy, Senior Policy Expert, OECD, gave an introductory presentation on the financial literacy option within PISA to provide a foundation for the discussions that followed (see Annex 2).

4. Lead-off interventions

Three speakers addressed the participants, providing views from both policy makers and researchers.

Ms. Sue Lewis, STLC Consultants, UK: stressed that financial education is most effective when it is compulsory and delivered by trained teachers. She would like to see more tailored resources, including those that recognise gender differences.

Ms. Delia Rickard, Regional Commissioner for the Australian Capital Territory (ACT), Australian Securities and Investments Commission (ASIC): told participants that financial literacy is in the school curriculum in Australia, and that the country is now building momentum to fully deliver the subject. She believes that the PISA assessment will provide important evidence of needs, gaps and successes and stressed how important it is for every country to stay in touch with their PISA representatives to make sure they are aware of the importance of financial literacy and the benefit of opting into the financial literacy assessment.

Ms. Emanuela Rinaldi, Lecturer in Sociology of Communication and Media, Faculty of Education, UCSC-Catholic University, Milan, Italy: discussed the gender differences in financial literacy and the need to plan financial education initiatives that address these differences. She also presented her own research which shows that it is difficult for individuals to change their behaviour even when we have the appropriate knowledge because of a reluctance to delay gratification. This strengthens the argument for developing appropriate behaviours at a young age.

5. Summary of facilitated discussion (based on PPT slides elaborated during session).

Participants contributed to a lively discussion, led by Ms. Lusardi. Main topics included:

The benefits of a financial literacy option in PISA. Participants continued to discuss the various benefits of PISA, recognising that the results of the financial literacy option will provide baseline data on financial education, from which to identify trends. Other benefits from the financial literacy option were also identified. In particular a) it highlights the fact that financial education must start before the age of 15, b) it shows the importance of the subject internationally.

The PISA assessment framework. Participants heard how the framework was used to guide the development of the test items that are used to measure the financial literacy of students. The test items cover many of the content and context areas discussed in the framework, but, as with most examinations, some aspects will be covered in more detail than others. There was general praise for the framework, and it was agreed that it provides a thorough and realistic guide as to the appropriate content for financial literacy and encompasses skills and understanding that are essential life skills. It was also noted that the framework can be used to evaluate the breadth of existing programmes and to guide the development of other assessments.

Finding the resources to participate. Participants noted that they would need to identify sources of funding for the PISA 2015 option, and that they would appreciate some indication of likely

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costs. Participants were encouraged to speak with their local representatives to estimate costs: the Secretariat noted that there are wide variations by country making a global average meaningless.

Evaluation evidence. Participants recognised the importance of evaluation. They noted that evaluation is essential in order to identify effective programmes and inform future policy. It was also noted that evaluation results from specific programmes can also help policy makers to interpret PISA financial literacy results. Similarly, PISA results will be valuable indicators of outcomes at a national level. There was also some discussion about the value of qualitative research to understand more about the relationship between students’ scores and behaviour. The OECD Secretariat encouraged all participants to share evaluation results by emailing links to be made available via the OECD International Gateway for Financial Education (IGFE).

Publications. Participants were keen to see a number of outputs from the PISA exercise, including short booklets and longer, detailed reports in order to reach out to the widest possible audience. Media attention should also be encouraged.

Participants shared their views on the content of such publications. They should fully describe the scope, and make clear that the assessment framework describes global competencies that are applicable in all countries regardless of whether and how financial education is provided. They should not focus only on ranking countries according to financial literacy levels, but also include in-depth analysis that can draw out the lessons for policy makers (always keeping in mind that associations do not infer causality).

Consideration was also given to the dissemination of such publications. Regional events were recommended as an appropriate way to share the findings amongst both participating countries and those not participating in the 2012 option.

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ANNEX 1: AGENDA AND FRAMEWORK

WORKSHOP 2 – EVIDENCE-BASED FINANCIAL LITERACY POLICIES FOR YOUTH: IMPLICATIONS OF THE 2012 PISA FINANCIAL LITERACY EXERCISE

12:30-15:00 Lunch and Networking Opportunity at Campus BBVA

15:00-15:15 Introductory remarks by the facilitator Facilitator: Ms. Annamaria Lusardi, Professor of Economics at George Washington University School of Business, USA, Chair of the PISA Financial Literacy Expert Group

15:15-15:30 Presentation of the PISA Financial Literacy exercise Speaker: Ms. Flore-Anne Messy, Principal Administrator, OECD

15:30-16:00 3 lead off interventions from policymakers and researchers

Ms. Sue Lewis, STLC Consultants, UK

Ms. Delia Rickard, Regional Commissioner for the Australian Capital Territory (ACT), Australian Securities and Investments Commission (ASIC)

Ms. Emanuela Rinaldi, Lecturer in Sociology of Communication and Media, Faculty of Education, UCSC-Catholic University, Milan, Italy

16:00-17:00 Facilitated group discussion

17:00-17:30 Coffee break

17:30-18:20 Facilitated group discussion (cont.)

18:20-18:30 Concluding remarks by the facilitator

18:30-19:30 Cocktail at Campus BBVA

19:30 Shuttle bus departure

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Workshop Framework

Workshop objectives

The purpose is to provide a platform for an open interaction between researchers and policy experts in order to:

gather their insights on the status of policy issues and research related to financial education of youth and in schools;

get a better sense of expectations and needs with respect to the PISA Financial Literacy exercise in order to prepare the analysis of results;

discuss and fine-tune a draft report outline for the PISA 2012 Financial Literacy results.

Issues for discussion will cover:

Policymakers main issues/concerns with respect of financial education for youth and in schools (e.g. modalities for the inclusion of financial literacy in schools, evaluation of programmes, evidence of efficiency and policy solutions);

Current stage of research on the subject (e.g. most successful modalities, existing evidence, evaluation of programmes);

PISA Financial Literacy (e.g. the framework, the scope of the assessment, the possible research questions, next steps and release of data); and,

Policymakers and Researchers’ expectations and views on the PISA Financial Literacy exercise. Participants will include:

Researchers with expertise on financial education in schools and in particular evaluation and measurement;

Policy experts and in particular: - Members of the PISA Financial Literacy Expert Group; - Members of the INFE subgroup on schools; - Relevant representatives of ministries of education participating in the PISA exercise; - Potential participants in the PISA FL 2015 exercise.

Documentation and material:

PISA 2012 Financial Literacy Framework

OECD/INFE Publication on Financial Education in Schools Including Policy Guidelines

Draft outline: PISA 2012 findings report (see Annex 2)

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ANNEX 2: FINANCIAL LITERACY PISA ASSESSMENT: RELEVANCE, SCOPE AND EXPECTED OUTPUTS

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ANNEX 3: LIST OF PARTICIPANTS

Australia/Australie

Ms. Juliette MENDELOVITS ACER

Ms. Delia RICKARD Senior Executive Leader Consumers, Advisers and Retail Investors (CARI) Australian Securities and Investments Commission (ASIC)

Azerbaijan/Azerbaïdjan

Ms. Natavan MAMMADOVA Head of Division for Resources and Special Projects, Center for Research

and Development of the Central Bank of Azerbaijan Republic

Canada

Mr. Jeremie RYAN Team Leader Financial Literacy, Financial Consumer Agency of Canada

Colombia/Colombie

Ms. Mariad el Pilar ESGUERRA UMAÑA

Director of Economic and Financial Education, Central Bank

Mr. Juan Carlos LÓPEZ MORA Communications and Public Awareness of Deposit Insurance, Fondo de Garantías de Instituciones Financieras – FOGAFIN

Ms. Carolina ROJAS OSPINA Senior Legal Advisor, FOGAFIN

Iceland/Islande

Mr. Breki KARLSSON Director, Reykjavik University, Institute for Financial Literacy

Italy/Italie

Ms. Emanuela RINALDI Professor, Università Cattolica del Sacro Cuore

Mr. Mario SPATAFORA European Financial Education Partnership (EFEP)

Mr. Maurizio TRIFILIDIS Senior Director, Servizio Concorrenza, normativa e affari generali, Banca d'Italia

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Ivory Coast/Côte d'Ivoire

Mr. Jean-Baptiste DIAI Senior Finance Officer, Anti-Money Laundry and Corruption Policy, Treasury and Public Sector Accounting, Direction of Treasury Ministry of Economy and Finance

Jamaica/Jamaïque

Ms. Carla MYRIE Training & Development Officer, Financial Services Commission

Ms. Nadene NEWSOME Communications Manager, Public Information Financial Services Commission

Japan/Japon

Ms. Ryoko OKAZAKI Director, Head of Financial Education Group

Public Relations Department Bank of Japan and the Central Council for Financial Services Information

Latvia/Lettonie

Ms. Ennata KIVRINA Project Authorised Officer

Director, Information and Career Guidance Department State Education Development Agency

Mexico/Mexique

Mr. Edgar GONZÁLEZ OLEA Head, Information and Coordination Unit , CONSAR

Netherlands/Pays-Bas

Mr. Jared PENNER Education Manager, Child and Youth Finance International

New Zealand/Nouvelle-Zélande

Ms. Diana CROSSAN Retirement Commissioner

The Commission for Financial Literacy and Retirement Income

Peru/Pérou

Mr. Hugo Efrain VILADEGUT OROSCO

Department of Education and Financial Inclusion Superintendencia de Baca, Seguros y AFP (SBS)

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Portugal

Ms. Rita BASTO Adviser, Banking Conduct Supervision Department, Central Bank

Ms. Susana NARCISO Head of Unit, Banking Conduct Supervision Department, Central Bank

South Africa/Afrique du Sud

Mr. Ginger BESTER Manager, Industry Liaison, Consumer Education Department

Financial Services Board

Spain/Espagne

Mr. Antoni BALLABRIGA Head of Corporate Responsibility & Reputation, BBVA

Ms. Maria BERCETCHE Strategy, P.A.U. Education

Ms. Lidia DEL POZO Responsabilidad Corporativa - Directora de Acción Social, Eventos y Patrocinios Institucionales, BBVA

Ms. Maria ERQUIAGA BBVA

Mr. Germán GUEVARA MILLAN European Financial Education Partnership (EFEP)

Ms. Iria HERNÁNDEZ BBVA

Mr. Jordi LÓPEZ MERCADÉ BBVA

Ms. Concepción MUÑOZ PEIRÓ Jefe de servicio, Secretaría General de Tesoro y Política Financiera, Ministerio de Economía y Hacienda (COMP)

Ms. Laura RODRIGUEZ P.A.U. Education

Ms. Lis Cercadillo Spanish Institute of Evaluation Ministerio de Educacion, Cultura y Deporte

Mr. Josep SOLER Director, Institut d’Estudis Financers

Mr. Pierre-Antoine ULLMO P.A.U. Education

Ms. Alicia VALENCIA GARCÍA Head of Financial Assets Acquistion Fund, Treasury and Financial Policy General Directorate, Spanish Treasury, Economics and Finance Ministry

Switzerland/Suisse

Mr. Daniel WEHRLI CEO, Kinder-Cash - Zentris AG

Tanzania/Tanzanie

Ms. Dionisia Peter MJEMA Senior Economist, Policy Analysis, Ministry of Finance

United Kingdom/Royaume-Uni

Ms. Sue LEWIS Head of Savings and Investments, stlc consultants

Ms. Kai Ling Jessie SIM Research Student, Department of Education, University of Oxford

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United States/États-Unis

Mr. Michael L. BEACHAM President, Money Savvy Generation

Ms. Jeanne HOGARTH Program Manager, Consumer Education and Research Section of the Division of Consumer and Community Affairs, US Federal Reserve Board

Ms. Annamaria LUSARDI Professor, Department of Economics George Washington University School of Business

Ms. Angela C. LYONS Associate Professor & Director, U of I Center for Economic and Financial Education, University of Illinois at Urbana-Champaign

OECD/OCDE

Ms. Flore-Anne MESSY Principal Administrator, DAF/FIN Ms. Adele ATKINSON Policy Analyst, Financial Education, DAF/FIN Mr. Guillermo MONTT Analyst, EDU/ECS