National Strategy of Financial Education - Czech Experience India-OECD-World Bank Financial Literacy and Education Trust Fund Dissemination Conference 4-5 March 2013, New Delhi

2 How the topic started in the Czech Republic White Paper on Financial Services Policy issued by EC in December 2005 stressed necessity of consumer protection and education, followed in December 2007 by Communication of EC on financial education December 2005 Czech government resolution committed MoF and MoE to prepare the System for developing financial literacy in primary and secondary schools In August 2006 Working Group on Financial Education was established and started the first projects: Creation of FL standards approved in 2007 Survey on the topics of financial education in 2007

3 Results of the Working Group Activities Implementation of the FL standards into the curricula of secondary schools in 2009 and into primary schools curricula in 2013 Development of FE programs for students and adults based on survey results showing the necessity and requirements for FE among respondents Preparation of National Strategy for FE approved by the Czech Government in May 2010 Participation in OECD pilot project of FL measurement in the second half of 2010

4 National Strategy - Definition of Financial Literacy „ Financial literacy is a set of knowledge, skills, and values of a citizen necessary for ensuring his/her own financial security and the financial security of his/her family within the present society, and for his/her active involvement in the market of financial products and services. A financially literate citizen is acquainted with the issues of money and prices, and is able to manage his/her personal and/or family budget responsibly, including the management of financial assets and liabilities in consideration of changing life situations.“

5 National Strategy - Content Importance of FE - situation and plans for the future Priorities of FE Active and responsible participation in the financial market Prevention of excessive indebtedness Old-age security Principles of FE Generality Expertise Targeting

6 National Strategy - Content Two pillar of FE FE of students as a part of initial education in schools FE of adults as a part of further education organized by universities and private sector Key partners - MoF, MoE, CB, MoIT, professional associations, non-profit organizations Financing - no extra budget for strategy implementation, FE programs which fulfill the agreed principles can be subsidized by the ministries or government from other budget items Action plan for 2010 – 2015 – tasks, deadlines, responsibilities

7 Responsible Bodies Working Group on FE – members are representatives of CB, ministries, financial associations, NGOs. Meetings twice a year, discussions, experience exchange Executive Committee – members are representatives of CB, MoF and MoE, it coordinates activities of all participating persons, ensures accessibility of information on FE projects, conceptual materials, issues recommendations for directing future FE projects Subgroup for FI inclusion into FE and solving the conflict of interest

8 What needs to be done FE is compulsory in high schools since 2009 and in primary schools since 2013, but N o general textbooks for both school types approved by MoE N o structured courses for teachers to prepare them for teaching the subject T he first textbook for pedagogical faculties for future teachers was issued with CNB support at the end of 2012 CNB experts lectured on FE for teachers free of charge from 2009 till 2011, now due to limited budget from MoE schools stopped the teachers participation

9 What needs to be done Programs for systematic FE of adults are not defined, single activities of various institutions are realized, but as they are not financed by the government they are not coordinated, FE websites are operated by many institutions incl. CNB, we monitor the accesses, but impacts are not measurable According to the survey of FED Cleveland: „Consumer enthusiasm for learning about finance is limited. When a free online financial-literacy course was offered to struggling credit-card borrowers, only 0.4% logged on to the website and just 0.03% completed the course.“ (The Economist, ) CNB offered lectures on FE for seniors free of charge to many universities, only some were prepared to do an extra work and organize the courses

10 Lecture Taken Approved National Strategy of Financial Education (also if approved by the Government) is a start and the whole work is in front of you

11 Thank you for your attention Helena Kolmanova Executive Director Consumer protection department