This presentation by David Kneebone was made during session 4 at the High-level Conference on Global and European Trends in Financial Education held on 22-23 May 2014 in Istanbul, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm
David Kneebone - 2014 Conference on Global and European Trends in Financial Education in Istanbul
1. Session 4: What are the criteria for
success of financial literacy?
David Kneebone
Executive Director
High-level conference on global and European trends in financial education
22-23 May 2014 - Istanbul, Turkey
3. Financial literacy competency framework
3
Competency
Foundation
knowledge
Advance
knowledge
Expected action
/behavioural outcome
Managing
debt
• Understands the
responsibilities when
borrowing money
• Understands how loans
and interest work
• Understands the
implications of debt on
budget
• Understands about
consumer credit rating
• Understands the
difference between ‘good’
& ‘bad’ debt
• Understands the long-
term impact of ‘bad’ debt
• Understands how credit
rating affects ability to get
a loan
• Understands the need to
consider individual and
household ability to
service debt before
borrowing
• Manages an appropriate
level of debt
• Plan is in place to reduce
debt - starting with
paying off high-interest
debt first
• Financial/payment
obligations are met
• The cost of borrowing
from different lenders is
compared before making
decisions
• Where possible high
interest debt is avoided