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


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APEC Guidebook on Financial and Economic Literacy

The APEC (Asia-Pacific Economic Cooperation) Guidebook on Financial and a1sx2_300_APEC_20141211-095201_1.png Economic Literacy in Basic Education, released earlier this month, is set to be a valuable resource for policy makers and practitioners concentrating on financial and economic education at the primary and early secondary school level. The Guidebook demonstrates how to design and implement learning activities related to financial and economic literacy for children and youth.

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High-School Student Publishes Book on Finance!

CYFI Youth Committee member Mahir Jethanandani from USA has recently had his book, The Immaculate Investor, published on Amazon!

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

PRESS RELEASE

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This November, Canada is talking about money!

This November, Canada is talking about money!

Did you know that November is Financial Literacy Month (FLM) in Canada? 

FLM 2013 is the perfect time to raise public awareness and promote the importance of greater financial literacy in Canada.

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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.

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List of Children's Books on Financial Literacy

List of Children's Books on Financial Literacy

 

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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... 

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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...

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A Saving Lesson for South African Children

For the first time in South African schools, a financial literacy program has been introduced to teach young people to be smart with their money. Click here to witness the moment by BBC News.

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