Description of the programme
The European Union’s policy for financial education was established in 2007. It adopted eight principles for programmes and announced four practical initiatives: a network of practitioners (the ‘Expert Group on Financial Education’); a database; development of an online tool for consumer information and education aimed at teachers (the ‘Dolceta’ project) and sponsorship of initiatives in Member States. The financial crisis underlined the problem of low financial literacy and aside from a greater impetus from the Council of the European Union and the European Parliament, work has been launched by several organisations and leaders working at the global level.
The study
The study was commissioned by the European Commission (EC) to understand the impact of the practical initiatives it adopted in 2007 and, where possible, identify scope for improving the effectiveness and efficiency of the initiatives. The study is EU-wide, and includes: an analysis of data on the characteristics of representatives on and work of the Expert Group on Financial Education; a review and assessment of the European Database for Financial Education; a review of the sponsorship of financial education initiatives; and a review and user-survey of the ‘Dolceta’ online tool financial literacy section. The paper does not identify any explicit research questions but reviews the evidence in these four areas.
Key findings
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Expert Group on Financial Education: A wide variety of stakeholders are represented; 5 meetings have been held with 80 per cent representation of members on average; they have discussed a wide range of topics via presentation and debate, felt by participants to be relevant and at the right level of detail; they have been successful in sharing, pooling and promoting expertise among members; several proposals have been made for EC future initiatives for increasing awareness of the importance of financial literacy and improving financial education. The group has been less successful at addressing the legal, bureaucratic and regulatory obstacles to the implementation of national financial education strategies; the group has demonstrated value for money but has not achieved all of its objectives; the group may be more effective if, for example plenary meetings are increased in frequency.
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European Database for Financial Education: It was created in 2009 as an electronic library of financial education initiatives, initially with 180 schemes; as a live database, 110 have since been added; it has been used by 1,470 distinct users. Usage of the database is considered low and might be due to a lack of promotion and design limitations; measures to improve use of the database might include public awareness raising and a ‘latest schemes’ section.
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Sponsorship of financial education initiatives: Following a commitment to support and encourage awareness-raising schemes, the EC has provided patronage and direct participation in campaigns and conferences in several Member States; these include the launch of the National Steering Group for Financial Education’s strategy report in Ireland and the 2008 European Stock Market Training awards ceremony; promotors see the EC’s endorsement as a useful way of raising visibility of their events; however, demand has decreased, partly due to lack of awareness of possible sponsorship and the lack of financial support it brings, and it is resource-intensive for the EC.
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‘Dolceta’ online consumer information and education tool: Originally established in 2003, a new section on financial literacy teachers was launched and promoted in 2010; the section is structured around four themes – spending, saving/investing, borrowing, and insurance – and includes lesson plans, fact sheets, case studies, quizzes, and audio/video clips; it is adapted to national curricula and age groups and is provided in 20 languages. Use of the site increased between 2008 and 2010 and feedback was mostly positive. The use and impact of ‘Dolceta’ and the scope for greater promotion of it is being explored further but early indications show that are indications that national administrations use it more than consumer organisations.
Points to consider
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Methodological strengths or limitations: The paper does not state explicitly how data were collected and some of the more qualitative findings may be best treated with caution (e.g. because we do not know if the research process indirectly influenced the responses).
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Relevance: It is likely that the status of EC initiatives and national financial education programmes has moved on considerably since this report was produced, in 2011.
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Generalisability: The findings are specific to the activities of the EC with limited transferability to other contexts.
Full report
Review of the initiatives of the EC in financial education - full report
