Context:

Financial education is becoming increasingly recognised by the international policy agenda. Three sets of high-level principles relating to financial education and endorsed by the G20 leaders over the past few years reflect this. In 2013 G20 leaders called on the OECD and the International Network on Financial Education (INFE) to develop core competencies frameworks on financial literacy for both adults and young people.

The study:

This 2016 report addresses the call from G20 leaders to develop a core competencies framework for financial literacy among adults. It is designed as a policy tool, highlighting a selection of financial literacy outcomes that may be universally relevant across member countries and economies to sustaining or improving financial well-being. The report examines the types of knowledge that adults over the age of 18 could benefit from, and suggests what they should be capable of individually, as well as the behaviours that may improve their financial well-being. The paper also focuses on the attitudes and levels of consumer confidence that will support this process.

The ‘core competencies’ referred to in the framework are aspects of knowledge, behaviours and attitudes that contribute towards people making rational financial decisions. There are four tables in the framework, covering the following areas (which are then further sub-divided into topics):

Core competencies for each content area and topic are grouped in the following way:

• : this relates to the information already acquired by individuals.

Key findings:

This policy tool builds on OECD/INFE work on core competencies for young people along with work on measuring the financial literacy of both adults and young people. It also uses national financial education frameworks combined with feedback from experts in OECD member countries. It uses the same content categories as the PISA financial literacy assessment framework (an assessment of financial literacy developed by the OECD). The work also draws on other OECD/INFE outputs, including research on financial education regarding long-term savings and investment, as well as the particular financial difficulties and challenges faced by vulnerable groups.

The report describes in detail competencies relating to each topic. While these are too detailed for this summary the detailed framework, with its areas and topics, are shown below in the order they appear in the report.

• Money and currencies
• Income
• Payments, prices and purchases
• Financial records and purchases

• Budgeting
• Managing income and expenditure
• Saving
• Investing
• Longer-term planning and asset building
• Retirement
• Credit
• Debt and debt management

• Identifying risks
• Financial safety nets and insurance
• Balancing risk and reward

• Regulation and consumer protection
• Rights and responsibilities
• Education, information and advice
• Financial products and services
• Scams and fraud
• Taxes and public spending
• External influences

The framework focuses on developing high-level outcomes that can be used to develop or improve national strategies or other programmes, as well as creating substantive measures for use in evaluation of interventions.

Points to consider:

• This report is relevant to all stakeholders and policymakers with an interest in financial education and financial literacy, and particularly those looking to develop or influence programmes and strategies in these areas.
• The research is designed to be universal and applicable in all settings. However, there will obviously be some areas that are of less relevance to people in the UK.