CYFI News & Blog

Latest news and articles from Child & Youth Finance and the CYF Movement Network

OECD PISA Results 2015: Outcomes and new insights support CYFI’s vision

Author: Wessel van Kampen, Managing Director CYFI​ 


The OECD Programme for International Student Assessment (PISA) recently released the results on financial literacy from 2015. CYFI attended the results launch event in Paris.

In addition to testing students' skills in mathematics, science and reading, the 2012 and 2015 editions of PISA also explored students' experience with, and knowledge about, money, providing an overall picture of 15-year-olds' ability to apply financial knowledge and skills to real-life situations. In 2015, around 48 000 students participated in the financial literacy test, representing about 12 million 15-year-olds in 15 participating OECD and non-OECD countries. 


Supporting CYFI's vision

CYFI has been advocating for an integrated approach of financial education and financial inclusion for the past five years, but until now little empirical evidence seamed to support such claims. The 2015 PISA results, alongside with other research and experiments recently led by the CYFI Secretariat (such as the implementation of SchoolBank projects around the world and the research led in seven East European countries on the attitude of youth towards the financial system) supports CYFI's claim and call for more attention to programs which integrate the two components.

The inclusion of a financial literacy assessment in PISA is the result of the unique collaboration between the Education Division and the International Network for Financial Education (INFE) of the OECD. It is based on the profound understanding of the fact that young people in both OECD and non-OECD countries are already involved in financial systems, are taking part in increasingly complex financial transactions, and are going to enter a financial work environment in their adulthood that is far more complex than that of their parents or teachers. Children are also already deeply engaged with money from a young age – more than 60 percent of 15-year-olds in participating OECD countries earn money from some type of work activity, 56 percent already have a bank account, and 19 percent have a prepaid debit card. At the same time, the results reveal that less than one in three students have the necessary skills to manage a bank account!

When compared to the results from 2012, only Russia and Italy have made any progress in increasing the financial literacy of students. This is of course a distressing result, considering the ever increasing engagement of youth with money, and the amount of work that has been done in the field over the past years. However, positive outcomes reveal that across all countries and economies, very few gender differences were detected in the levels of financial literacy among the 15-year olds surveyed. This finding is in contrast with the results of many adult financial literacy surveys, where women in most countries consistently score lower on financial literacy indicators than men. While the nature of this difference in financial literacy between adult males and females is not yet fully understood, it will be interesting to see whether this gender gap will continue when this next generation reaches adulthood or if we are on a path to closing the gender gap both in terms of financial inclusion and financial literacy.


Furthering youth financial literacy

The 2015 PISA results also confirmed that practical applications of financial knowledge and behaviours have a strong impact on financial literacy levels. Evidence shows that there is a positive relationship between performance in financial literacy and holding a bank account or receiving gifts of money. Moreover, students who are more financially literate are more motivated to use financial products, and perhaps more confident in doing so.

There is a growing perception in the field that students develop better financial understanding, skills and habits not only through talking to parents and observing their behaviour, or simply by receiving financial education lessons in class, but especially via personal experiences and learning by doing. This is also an essential element of the SchoolBanks implemented by CYFI and its network partners.

Another interesting result of PISA is linked to the socio-economic background of the student. Socio-economically advantaged students score 89 points higher than disadvantaged students, on average across the OECD, which is an equivalent to more than one PISA proficiency level. Even after looking at students with similar math and reading scores, disadvantaged students from poorer families are about twice as likely as advantaged students to be low performers in financial literacy. These findings support once again CYFI's focus to integrate financial education in the formal school curriculum across the board, in order to tackle those socio-economic differences early on.

The results of the 2015 PISA assessments could have implications on a series of initiatives to be led in the following years:

-The importance of impact evaluations of financial education initiatives in and outside of school
-The need of providing young people with safe opportunities to learn by experience and by using basic financial products;
-The need to target parents with financial education initiatives at the same time as young people;
-The necessity of addressing the needs of low-performing and economically disadvantaged students;
-The importance of providing equal opportunities for learning to boys and girls;
-And finally, the imperative of integrating financial education into the school curriculum and providing effective and scalable teacher training.

Detailed results, country overviews and more data can be found in PISA 2015 Results (Volume IV): Students' Financial Literacy.

We encourage our network partners from various sectors to look into these results, to learn from the experience of other countries as well in the design and implementation of financial education programs for children in their countries. CYFI can provide support and guidance in this effort. You can follow the conversation on Twitter: #OECDPISA, and INFE-OECD


Rate this blog entry:
Continue reading
198 Hits
0 Comments

Policy Pledge for a Generation of Financially Capable Young People

Today is the last day of the 3rd Annual Child & Youth Finance International (CYFI) Regional Meeting for Africa. Held at the African Union Headquarters in Addis Ababa, Ethiopia, the meeting brought together Africa’s finest policy makers, educators, research and academic institutions, financial service providers, as well as representatives from various government ministries. The main objective of the meeting is to develop a common African position on the advancement of a unified financial education and inclusion plan of action for children and youth across the continent.

...
Rate this blog entry:
Continue reading
9393 Hits
0 Comments

Shaping Egypt's Future through Financial Education

Egyptian Banking Institute (EBI) has recently launched a series of radio talk shows on financial literacy awareness and education. The radio series is part EBI's financial inclusion initiative called "Shaping the Future." In addition, on October 28, in partnership with GIZ, EBI held a training workshop for the members of the "National Committee for Drafting Financial Literacy Strategy in Egypt". The workshop brought together international experts to discuss the current state of financial education in Egypt and to enhance the skills of the committee members in their development of a national financial education strategy which is in line with international best practices.
Rate this blog entry:
Continue reading
6251 Hits
0 Comments

Young Women Learn Money Management Skills

On October 12-13, the Baizat team ran a series of “My Money Skills” workshops with young women (aged 12-18) from Sajaya Girls Centers in Sharjah and Kalba. The workshop was initially developed by Visa and the Emirates Foundation. In each course, 25 young ladies participated in personal finance lectures and activities which covered topics such as budgeting, decision making and banking services. The final part of the course involved a field trip to a financial institution or a local supermarket, in order to teach the young women about the basics of decision making and the major areas of personal finance that young individuals will encounter both today and tomorrow, such as budgeting, banking services and the costs of living alone.

a1sx2_Baizat My Money Skills Workshop with young women_Baizat-My-Money-Skills-Workshop.jpg
Rate this blog entry:
Continue reading
2378 Hits
0 Comments

Press Release: Youth to Lead the World to an Inclusive Future

PRESS RELEASE

...
Rate this blog entry:
Continue reading
8927 Hits
0 Comments

Partnering with Teacher Training Institutes to promote Child Social and Financial Education

A new report from Aflatoun describes how partnering with Teacher Training Institutes has been a better strategy to guarantee quality and scale of programming than traditional approaches using Regional Master Trainers.

...
Rate this blog entry:
Continue reading
9005 Hits
2 Comments

Bankaroo – A Virtual Banking App developed by an 11 year old

Danielle wanted to build a website and a mobile application that will help parents teach kids about the value of money, as well as help them manage their allowance, gift and chores money.

...
Rate this blog entry:
Continue reading
11491 Hits
0 Comments

Baizat Partner with the Movement to Further Financial Education in the UAE

Baizat Partner with the Movement to Further Financial Education in the UAE

Dubai, United Arab Emirates (UAE) - Amsterdam, The Netherlands

In a move to join hands to further youth financial education in the United Arab Emirates (UAE) it is today annoncued that Baizat will join the Child and Youth Finance Movement. The partnership with Baizat is an exciting development for both organizations as they work towards increasing financial literacy in the MENA region and focus on doing this through financial education for children and youth.

...
Rate this blog entry:
Continue reading
23017 Hits
0 Comments

Gaming with a Purpose?

Gaming with a Purpose?

This is the second blog post in a series of post Child and Youth Finance will be doing at The Huffington Post. This privilege comes with the Skoll Social Entrepreneur Fundraising Challenge we are taking part of to raise fund for CYFI  to better further the progress of the Movement.

...
Rate this blog entry:
Continue reading
59497 Hits
0 Comments

Summary of Day 1 of CYFI Regional Meeting for Africa

Summary of Day 1 of CYFI Regional Meeting for Africa

 

...
Rate this blog entry:
Continue reading
25404 Hits
0 Comments

Coconut Spoons & Citrus Enterprises– Aflatoun Stakeholder Meeting in Sri Lanka

Coconut Spoons & Citrus Enterprises– Aflatoun Stakeholder Meeting in Sri Lanka

In a classroom in a Sri Lankan village 9 year old Kasun* sit together with the other children of the Aflatoun and NECY children club. He proudly wears the t-shirt that he got from the village cooperative bank when he and the other kids of the club were playing elle. He had played a great game that day and it had earned him one of the t-shirt he was now wearing. Although it is getting a bit washed out now, he stills wears it as often as he can as a memory of a great day (and of course to remind everyone in the club of what a good elle player he is!). 

...
Rate this blog entry:
Continue reading
30723 Hits
0 Comments

Romania to implement Financial Education nationally

Romania to implement Financial Education nationally

The National Bank of Romania, the Central Bank of the country, will support the implementing of Financial Education as an optional subject at a national level, as part of the alternative curricula for primary education approved by the Romanian Ministry of Education. It will be implemented in the academic year 2013 – 2014.

...
Rate this blog entry:
Continue reading
28615 Hits
0 Comments

Young people: access to finance using branchless banking


Walk down any street in Nairobi, Dar-Es-Salam, or Cairo or in a small African town it seems everyone, including teenagers, has a phone to their ear.  Indeed, for those 18 and under, few have known a world without mobiles. Not surprising school age boys and girls (5-14), teens (14-18), or young people entering the labor force or tertiary education (over 18), are seen as a potential new market for the provision of financial services.  While recent experimentation in this space has focused on savings, there is growing consensus that young people should be able to access a full range of financial services, with the priorities changing as they advance in their life cycle. Not only are youth savings and youth financial education hot topics in the financial services space but there is also a growing recognition that young people have money, and technology based financial services offer a gateway for their financial inclusion. 

Rate this blog entry:
Continue reading
36785 Hits
2 Comments

On Financial Knowledge and Financial Behaviour: Why we need the courage to walk the extra mile

Imagine you teach your child how to ride a bike. You will tell her or him what to do: Keep the balance, push the pedals, and steer into the right direction. If your kid has understood this information she will in theory know how to ride a bike, but it is very likely that she will try and fall a couple of times before finally making their first hundred meters safe and sound.

 

Learning how to deal with personal finances works in a similar way like learning how to ride a bike. The mere knowledge about how to handle money... 

Rate this blog entry:
Continue reading
49495 Hits
3 Comments

Learning How to Save Changed Abbo’s Life

Florence Abbo left her home village to start a new life inKampala, the capital city ofUganda. At the age of 18, she was a single mother who needed an income to take care of herself and her baby. Abbo started her new life by making and selling beads. For some time the business did not bring in any profits. Life was had for her since she hardly made any money for almost four years...

Rate this blog entry:
Continue reading
34677 Hits
0 Comments

The Romani People and School in Italy

A historical perspecive on the Roma minority in Italy. Insights upon their culture, educational problems of children and youth.

Around 160.000 Romanis live in Italy today, divided in two main groups, the Roma and the Sinti.

Romanis presence in Italy dates back to the Middle Ages, and has concerned the whole peninsula, even though since the 1960s they have been settling more and more around middle/large urban areas.

Around half of the Romanis have Italian citizenship, while the other half is composed, for one third, by migrants from ex-Yugoslavia, either coming directly from there, or who descend from second/third generation immigrants; the remaining two thirds are mainly Romanian Roma...

Rate this blog entry:
Continue reading
14846 Hits
0 Comments

Habits of Saving Build Future Financial Independence

This blog tells the importance of financial education among young people. Good example of how a saving account can provide a more stable financial future.

I have been deeply involved in CYFI activities since the establishment of Bright Generation Community Foundation of which I am a founding partner and current chief Executive. These activities span a period of nearly ten years.

Though the Ghana Bamboo Bicycle Initiative is the main project of BGCF, I have been able to make a series of judicious choices which have enabled me to combine the experience gained from that project with my role in CYFI. Thus there is a synergistic relationship between the two entities.

One of the cardinal objectives of the Ghana Bamboo Bicycle Initiative is poverty reduction. This can only be attained if people get jobs or are able to engage in profitable business ventures...

Rate this blog entry:
Continue reading
28616 Hits
0 Comments

Financial Literacy Levels in Uganda Need Boost

This blog is concentrating on the importance of financial literacy in Uganda. Sharing facts about the current financial education among the population and pointing out the need for financial initiatives and outreach programs targeting young adults and children.

Financial literacy entails acquisition of skills and knowledge that allows an individual to make informed decisions regarding money matters. A 2011 Bank of Uganda report defines financial literacy as having the knowledge, skills and confidence to manage one`s own finances well.

Going by this definition, knowledge of managing one’s finances is a necessity. The ability to do so determines whether an individual, a community or country for that matter, is economically empowered.

In developing countries, just like elsewhere in the world, financial literacy is essential for all irrespective of one’s status...

Rate this blog entry:
Continue reading
43910 Hits
2 Comments

OECD Financial Education Meeting, 11-12 September

The OECD Financial Education Meeting was held for Asia-Pacific, Sept 11-12 in Cebu, Philippines. This event brought together high-level officials and experts from central banks and officials of state governments, the private sector, academia as well as non-government organisations from South East Asia/ASEAN and APEC countries.CYFI presented on the CYFI financial education framework and the integration of financial inclusion and education in schools.

...
Rate this blog entry:
Continue reading
1734 Hits
0 Comments
Designed & developed by | Webfruit Development