Presentation by Cheryl Bruce – Economic Affairs Division (ComSec)

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Nov 10, 2013 (3 years and 11 months ago)

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Commonwealth Secretariat’s
Financial Literacy Initiatives

Lessons for Youth Enterprise
Education


The Adult Test







Definitions.



(
UK)
-

Financial capability means being able
to:



manage your money



keep track of your finances



plan ahead


make informed decisions about financial
products and


stay up to date
on
financial matters.


Focus



Couple years ago: Financial Inclusion
-

Microfinance, business enterprise development.


Today: greater
degree of focus on financial
literacy
-

see
G20


Query
: Has this focus filtered in business
programmes
-

hand and glove
exercise.




Why hasn’t Financial Literacy programmes
featured more at the national
and other level.



True or False



In general, youths have a basic understanding
of financial
terms?


Survey Says....

No of
Terms
Correctly
Explained

%
with Correct
Explanations

(Pre Se
minar)


%
with Correct
Explanations

(Post Seminar)



0
-
2

10%

1%


3
-

5

48%

5%


6
-

8

38%

48%


9
-

10

4%

46%


True or False


There are sufficient resources available to help
youths learn about personal financial
management
.



UK, Canada, Australia, USA,


Questions: Dissemination, Adaptability to
Culture/Language, Levels, Access, Knowledge
of, Confidence to act on?


True or False


Youths know about the benefits of saving and
are keen to have their own bank account.





Would love to have a bank account


Survey Says


Still cannot differentiate on which prospects provide
the best benefits
-



45%: saving with a neighbourhood scheme was better
than saving in a bank; 49% of the youths indicated that
they saved at home.



25%
-

never thought of opening a savings account,


20%
-
did not have enough money to open an account;


10% either did not know how to open an account or
were afraid of going to the banks.


Banks
: could not be trusted, stole or deducted money
from your savings or charged money for making late
payments


Culture and Changing Norms




Caribbean
: Hollywood Culture, Values Culture


Pacific: No longer working land, dependence on
remittances, ignorance of migrants, Village
commitments, Traditions


Africa: Culture: Western Culture, Funerals, Weddings
Loans


2 out of every 3 adults save


3 out of every 4 saved at home, with friends, family or
local pools.


1 in every 5 adults had a bank account




3 in every 4 adults had never been banked


Recommendations



Work
on getting financial literacy programmes into national
curricula


Develop partnerships with NGOs and private sector


Set aside dedicated funding for programmes.


Explain products in plain simple
language


Define the major financial terms used


Provide examples of how transaction works



Identify both the benefits and drawbacks



Alert to hidden and overall costs



Partner for development of materials and dissemination of
information.




Partner to develop strategies which motivate savings




Focus strongly on strategies for reaching and aiding rural
communities




Evaluation


Measurement Issues


Quantitative vs. Qualitative?


Short Term of Long term?


Demand? Interest?


Benefits to economy in general.