OECD Project on Financial Education

In order to respond to OECD governments growing concerns over adverse affects of low financial education levels, a comprehensive and high-level project on financial education was launched in 2003.

This project is serviced by 2 OECD Committees (the Committee on Financial Markets and the Insurance and Private Pensions Committee) to cover a wide spectrum of connected issues.

The main goals of this project are to:

• Launch an extensive data collection and ongoing surveillance of financial education developments in OECD and emerging economies
• Develop an analytical framework to address main issues and challenges in the area of financial education
• Elaborate good practices and principles on financial education
• Promote and raise awareness on these issues through high-level conferences and forums, development of a dedicated website and co-operation with relevant partners

In June 2006, G8 Financial Ministers recognized the OECD work and activities on financial education. In particular, they “acknowledge[d] the importance of better financial education and literacy for improving the ability of people to use financial services and to make effective decisions with respect to their present and future welfare. [They] welcomed the ongoing work in the OECD on the Financial Education Project and call for further development of financial literacy guidelines based on best practices” [see G8 declaration]. 

Main outputs

The first major study of financial education at the international level, entitled Improving Financial Literacy: Analysis of Issues and Policies, was published in 2005. This study identifies and analyses financial literacy surveys in OECD member countries, highlights the economic, demographic and policy changes that make financial education increasingly important, describes the different types of financial education programmes currently being offered in OECD countries, evaluates their effectiveness to the extent possible. It also suggests actions policymakers can take to improve financial education and awareness. 

OECD governments also endorsed in 2005, a set of Principles and Good Practices for Financial Education and Awareness. The aim of the Recommendation is to help policymakers design and implement effective financial education programmes. The Principles include suggestions on how governments can increase both public awareness of financial issues and the dissemination of financial information, on how financial institutions can provide objective and unbiased information on financial products, on the role of employers in the provision of financial information on retirement saving, and on the issues providers need to consider in determining the content and delivery of financial education programmes.

In 2006/2007, the OECD has further carried out work in the pensions and insurance sectors:

• Good practices on financial education related to pensions
• Background report on financial education and retirement income
• Good Practices for Enhanced Risk Awareness and Education on Insurance Issues
• Background report on awareness and education on risk and insurance issues

These documents will be released as single publication in 2008.

In 2008, a stock take analysis and policy handbook on risk awareness and education relative to natural catastrophes will be completed and published under the aegis of the OECD and the International Network on Large Scale-Catastrophes.

The OECD is also involved in the planning, coordination and organisation of high-level conferences and the global forum on financial education. These notably allow the Organisation to advance and elevate the dialogue on financial education in the international arena, and to obtain invaluable input on best practices. 

Future Work

The OECD has an extensive programme of work on financial education issues, including:

• Analysis and guidelines on  credit and especially mortgages
• In-depth research and survey on Pensions issues (e.g. annuity products, financial retirement awareness) 
• Role of financial intermediaries in financial education (development of codes of  ethics/conduct)
• Financial education at schools   
• Various financial risks (including those related to savings, investment , health)
• Vulnerable and underserved groups 
• Financial education in emerging economies
• Methodology to assess level of financial literacy of the population 
• Methodology to evaluate efficiency and effectiveness of programmes