Financial Education and Literacy (3)

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As we have reviewed the definition and principles of financial education, now this post talks about good practices of financial education. When can we regard that financial education is sought in a good way? Here are defined ‘Good Practices’ by the OECD. Since these recommendations are non-binding and voluntary, there are still rooms for defining ‘good practices.’ For your convenience, information is listed in a bullet-form. Some points are overlapped with the points addressed in the previous post.

 

 

Public Action for Financial Education

 

  • National campaign to raise awareness of the population about the financial literacy
  • Financial education at early stage of life, at school
  • Financial education as part of welfare assistant program
  • Appropriate specialized structures in charge of promoting and coordinating financial education
  • Provision of user-friendly information via websites
  • International Co-operation of financial education

 

 

Role of Financial Institutions in Financial Education

 

  • Provisions of specified information to clients
  • Clear distinction between financial education/information and commercial financial advice
  • Meeting the needs of financial consumers in a clear and appropriate manner
  • Regular assessment of financial education to check whether appropriately meeting the needs of financial consumers
  • Staff at institutions to be well trained

 

 

Financial Education Programs

 

  • Helping financial consumers understand pros and cons of financial products and services
  • Development of methodologies to assess existing financial education programs
  • Use of all available media for the dissemination of education message
  • Creation of different programs for specific sub-groups in order to take into account the diverse backgrounds of investors/consumers

 

 

 

In principle, individuals are responsible for managing their own choices of financial services. However, with recent and rapid developments in financial markets, it becomes increasingly important to provide individuals with financial education. With the help of financial institutions and various programs, you as an individual and financial consumer are to make your own effort to improve your financial literacy. Being a regular reader of our blog will be a good starting point, as it will allow you to know the recent financial issues! 

 

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