OECD-BSP Asian Seminar for Financial Education and Financial Inclusion: Addressing the Upcoming Challenges
September 12th, 2012
The Child and Youth Finance Movement: Promoting Financial Inclusion for Children and Youth Cases Studies for a school-based approach.
Daniele Scauso Financial Authorities Relationship Manager
• Financial Authorities and Governmental Sector Representatives
• Financial Institutions and Networks
• NGOs and Social Enterprises
• Financial Education Service Providers
• Foundations
• Leading researchers in the fields of financial inclusion and financial literacy
• Media
• Technology & TelCo.
• Multilateral and Bilateral
Agencies
• Youth
• And more….!
CYFI: a collaborative Partnership Network
53. We recognize the need for women and youth to gain access to financial services and financial education, ask the GPFI, the OECD/INFE, and the World Bank to identify barriers they may face and call for a progress report to be delivered by the next Summit.
Source: G20 Leaders Declaration - 18-19 June 2012, Los Cabos - Mexico.
Child and youth finance on the International Agenda
Cognitive Skills Personal Skills Interpersonal Skills
Level 1: 0- 5 years
Identify emotions, understands consequences
Care for precious items, basic health and safety
Express feelings, understands compassion
Level 2: 6 to 9 years
Basic children’s rights, respects diversity
Can follow a daily plan, accepts responsibilities
Respect for rules/guidelines, listening skills
Level 3: 10-14 years
Seeks information for independant thought
Appreciation for lifelong learning, anger management
Express opinions, planning and teamwork
Level 4: 15+ years
Articulate rights, social justice, community outlook
Initiative in the pursuit of goals, time management
Relationship building, leadership, negotiation
CYFI Social/Lifeskills Education (UNICEF, UNESCO)
CYFI Education Framework
Resources and Use
Planning and Budgeting
Risk and Reward Financial Landscape
Level 1: 0- 5 years
Value of money, saving and sharing
Prices and purchases of things they want
Consequences of carelessness, saving special items
Money in the community, understand belongings
Level 2: 6 to 9 years
Recognize monetary symbols
Needs and wants, savings plan
The necessity of saving, rewards of sharing
Choices on banks and financial services
Level 3: 10-14 years
Differant denominations, be an informed consumer
Budget for expenses, short vs. long term planning
Risks and rewards of various financial products
Where to seek financial info, effects of advertising
Level 4: 15+ years
Financial negotiations, purchasing power
Calculate spending capacity, financial goals
Risk of default, impact of interest rates, illicit activity
Aware of financial crimes, evaluate FSPs, mobile banking
CYFI Financial Education (OECD)*
* CYFI has based the Financial Education component of the CYFI Learning Framework on OECD’s PISA 2012 Financial Literacy Assessment Framework. (http://www.oecd.org/dataoecd/8/43/46962580.pdf)
Career Counseling
Entre-preneurship
Securing Employment
Retaining Employment
Level 1 and 2: 12 years and under
Express career interests, understand professions
Identify entrepreneurs in community, achieve goals
Initiative in performing tasks, problem solving
Teamwork, following advice, avoid hazards
Level 3: 12-15 years
Assess skills and interests in related vocations
Identify opportunities , develop action plans
Self-discipline, personal hygiene, paths to employment
Perseverence, attention to detail, communication
Level 4: 15+ years
Career goals, wages and salaries, networking
Entrepreneur or employee, capital needs, marketing
Requisite skills, preparing CVs, cope with change
Customer service, management skills,
CYFI Livelihoods Education (ILO)
Promoting Access to Youth Financial Services (YFS)
• Youth do have money to save
• Research shows significant impact in beginning
savings habits at young age
• Complement to Financial Education
• Informal vs formal savings
• The role of Financial Regulation
• The role of Technology
• Products Barriers
12
ChildFriendly and YouthFriendly Banking Product Certificate
Minimum Institutional Requirements
• The financial institution is licensed under appropriate national laws and regulations
• The institution is in good standing with its national regulatory authority
• The institution is covered by a deposit guarantee scheme, if applicable, in the country
• The institution has a code of conduct with respect to children including staff training and development programs on how to interact with children
12
Minimum Product Requirements
• Non-discriminatory access to products
• Maximum control by the child within the national legal and regulatory framework
• Net positive financial return received by the child • No penalty in case of withdrawals • No or minimal requirements with respect to initial
opening deposits
• No credit facilities (including overdrafts) related to product
• Child-friendly (simple and transparent)communication
surrounding the product • Financial education component to the product (different
levels ranging from educational brochures to “Bank in School programs”)
Case study: Aflatoun – NATCCO Partnerships for Formal Child Savings at school
Source: “Partnerships for Formal Child Savings: The Aflatoun-NATCCO Philippines Case”, Aflatoun Social & Financial Education, 2012
Highlights 2006: NATCCO introduced Aflatoun Program to the network 12 Cooperatives 2008: DepEd National Memo No. 228 Series of 2008 approved for the nationwide implementation of the program – Launch of Child Savings program 2011: Over 12.800 children savings ( age 5-12) More than 10.000 accounts collectively hold Youth Savings Volume: 44.000 USD
Integration in the School Curriculum • Teachers’ training
• Tailoring Education Material
Development of a Child-friendly savings products • Voluntary enrolment in the savings scheme by the student
• Parents need not be signatories to accounts
• The classroom savings process is operated by an Executive Committee
• Accounts are registered in both personal passbooks and a separate ledger
• Deposits can be made on a weekly basis with a minimum deposit of PHP5
• Deposits and withdrawals exceeding a certain amount must be explained
with valid reason presented
• Parents can encourage their children to save but cannot participate
directly in the savings scheme
Implementation
Carla Sánchez - Winner of the CYFI Youth Champion Award at the 1st CYFI Annual Summit & Awards Ceremony, April 3rd-4th, 2012 – Amsterdam, The Netherlands
Children International & Banco de Guayaquill Ecuador
School bank Concept
Who: CYFI Technology and Innovation WG
Keywords: Schools, community centers, non-formal education institutions
Financial inclusion aided by technology Childfriendly – Youthfriendly savings products
Global Connections
GOAL: to reach the maximum number of unbanked children and youth through financial access at schools combined with child and youth financial education
Moving Forward
• Addressing Regulatory Barriers: collaborating with the World Bank on a global survey on childfriendly/youthfriendly regulatory frameworks
• Join The CYFI Week on March 15th -22nd , 2013!
• Join the Movement! Become a Partner of the CYFI Network
Looking forward to meeting you
• CYFI Regional Meeting for Asia & Pacific
December 4th, 2012 - Manila
• 2nd CYFI Annual Summit
April 8th – 10th , 2013 - Istanbul
ChildFinance ChildFinance
www.childfinanceinternational.org
Daniele Scauso
Financial Authorities Relationship Manager
Tel. +31 (0) 20 52 03 812