I Professionisti Certificati EFPA per una €ducazione finanziaria corretta e consapevole del risparmiatore “Financial Literacy in Schools: The role of financial practitioners” ” EFEC Project: Spain BAKCYL Project: Poland Riva del Garda, June 6th 2013 1 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) “Financial literacy in schools” ” 2 1. Importance of financial literacy 2. EFEC and BAKCYL approach on Financial Literacy 3. EFEC Project (Spain) 4. BAKCYL Project (Poland) EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 1. Importance of financial literacy (I) Risk of lack of financial literacy CONSUMER FINANCIAL ENTITIES Wrong financial decisions Lack of confidence Unprofitable financial decisions Dissatisfied customers Over indebtedness Increased delinquencies Benefits of financial literacy CONSUMER 4 FINANCIAL ENTITIES Predisposition to financial products. Increased market share. Better management of financial risks. Lower risk of defaults. Reaching financial goals. Customer loyalty. EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 1. Importance of financial literacy (II) Financial literacy is REQUIRED at school because: – Increased life expectancy. – Reduction of the Welfare State Pensions Healthcare Education 5 – Expansion and constant innovation of financial markets – Avoid gregarious behavior on buying financial products – Regulator can’t (and shouldn’t) decide for consumers – Information without education is useless EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 2. EFEC and BAKCYL approach on Financial Literacy Partnership between public and private stakeholders. – Financial entities: provides volunteers and economic support. – Public administration: institutional backing of the project. – Project management. The project fits perfectly with the Corporate Social Responsibility goals of the banking industry: – Improve the reputation of the sector. – Allows its employees to participate on social projects. – It is NOT a marketing activity Public administration benefits because: – 6 It is a topic which school teachers are, usually, unwilling or afraid to teach. EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 2. EFEC and BAKCYL approach on Financial Literacy Project management 7 – Contact, selection and training of schools – Training and support of volunteers – Preparation of financial education workshops – Coordination and logistics of the project – Tabulation and analysis of surveys – Dissemination of the project on the media – Information to partnership members EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 2. EFEC and BAKCYL approach on Financial Literacy Financial Literacy is taught in the classroom throughout different workshops. Financial Literacy is provided by financial practitioners (present and former). Practitioners participate on a voluntary basis. Practitioners are trained on workshops contents and on pedagogical skills. Workshops content (done by the project management) includes ppt presentation, classroom activities, exercises, icebreakers, internet resources, etc. 8 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 2. EFEC and BAKCYL approach on Financial Literacy 9 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 2. EFEC and BAKCYL approach on Financial Literacy 10 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. EFEC Project Key figures 11 – Schools: 106 – Target group: students of last year of mandatory education (15/16 years old) – Students: 6.700 – Worshops done: 1.300 – Volunteers: 285 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. EFEC Project The role of EFPA Promote the project among its members (corporate and individuals) Recognizes CPD credits to volunteers (with a cap). Highlights on the media and in conferences, the importance of financial literacy and what financial advisors can do (as volunteers and with their clients) Increases visibility and “social role” of advisers. 12 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. EFEC Project Workshops (fitting in the PISA requirements) – Managing your money (management of personal budget). – Smart investment (how to select savings / investment products). – Finance for life (introduction to personal financial planning and long-term savings). – Borrowing wisely (debt products and how to avoid over-indebtedness). – Jame’s everyday concerns (everyday financial situations: intelligent consumption, understanding a payroll, payments on line ...) 13 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. EFEC Project Problems in the daily management 14 – Commitment of schools (directors AND teachers) – Alignment of volunteers – Early retired employees as volunteers – Back-up teams – Current animadversion with bankers and financial professionals – Lack of comprehensive reading of communications (schools and volunteers) – Schools outside Metropolitan area EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. EFEC Project Financial literacy dissemination and expansion: Financial literacy is a “hot topic” and gets huge media coverage and impact. Financial literacy project to be developed in the 2nd half 2013 in Castilla La Mancha (another Spanish region). Includes a specific workshop to parents and teachers. Initial contacts with authorities and financial institutions in Galicia, Aragón and Andorra. 15 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. EFEC Project 16 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. BAKCYL Project Pilot Project – Approach very similar to EFEC: follow good example – Target group: students of last 2 years of gymnasium (15/16 years old) – 4 lessons, 40 volunteers, 100 schools – Central Region, – Funded by Polish central bank NBP – 12 partner banks, – Under auspicies of Minister of Education and Polish Banks Association – Plan to roll out to whole country next year Keep your fingers crossed for us☺ 17 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. BAKCYL Project 18 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) 3. BAKCYL Project 19 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN) "Education Is Not the Filling of a Pail, But the Lighting of a Fire. William Butler Yeats 20 EFPA Italia Meeting 2013, 6/7 Giugno – Riva del Garda (TN)