In the wake of the financial crisis, countries are making efforts to improve the financial literacy of their citizens says a new report from the Organization for Economic Cooperation and Development (OECD) and the G20 presidency.
The report, which is to be presented to G20 leaders in Saint Petersburg this week, looks at the progress of governments in implementing national strategies for improving financial education. It finds that nine of the 21 countries covered in the report are implementing a national strategy that follows principles developed by the OECD. And, another seven countries, including Canada, are well advanced in the design of a strategy, it says.
According to the report, Canada’s national strategy “is currently in the late drafting stages”; and, it says, it will be finalized and implemented by the Financial Literacy Leader, which the government has yet to appoint. “The implementation plan for the national strategy will provide for both broad initiatives aiming to enhance the financial literacy of Canadians generally, and activities targeting more specific segments of the populations, such as seniors, youth, aboriginals and newcomers to Canada,” it says.
A priority for the Financial Consumer Agency of Canada (FCAC) is the development and implementation of a single source website for financial literacy, it says. “This website will enable Canadians to identify resources that address the specific area of financial education that they are seeking at that time; in this regard, a self-assessment tool will help direct users to the most relevant areas of focus. In addition, the website will allow stakeholder organisations active in financial education to identify existing resources that could complement or support their programmes,” it says.
The report says that the provincial governments are also at different stages in their efforts to enhance financial education, with some having established the parameters for financial education within their curricula, and others in the process of doing so. Also, a new approach is being explored for the delivery of financial education in the workplace, it says.
Almost all of the national strategies include a programme of financial education in schools as well as the creation of interactive websites for the public, the report notes.
“The progress made by an increasing number of countries towards a national strategy for financial education is encouraging. But we need to step up our efforts to ensure that people have the necessary understanding of financial matters to make informed decisions,” said OECD secretary-general, Angel Gurría.
“We believe this publication is an important step forward which can help us to achieve better financial stability, inclusive development and individual and households’ wellbeing,” said Russian finance minister, Anton Siluanov, adding that the G20 should continue to play a role in enhancing financial education.