José Alexandre Cavalcanti VascoHead, Education and Investor Assistance Department

Comissão de Valores Mobiliários – CVM(Securities and Exchange Commission of Brazil)

Financial Education in SchoolsBrazil

1

National Strategy for Financial Education

2

Chapter  

Section I Introduction

Section II Presentation of the main topics of interest (Economy/the Brazilian Financial System / Banks/ Financial Planning/Credit/Investments/ Social welfare/Insurance.)

Section III 3.1 – Financial Education (FE) in schools (Educational Support Group – GAP) > CVM

3.2 - Adults Financial Literacy > Central Bank

Section IV Governance > PREVIC

Section V Conclusion

Annexes FE in Schools – Guidelines

National Survey on FE – Report 

Inventory of FE projects in Brazil / International Experience

4 FE programs (the Central Bank, CVM, PREVIC and SUSEP)

Financial Education in Schools

1. Coordinated by the Brazilian SEC

2. Dec 07: contact made with the Ministry of Education

3. Apr 08: Partnership with Ministry of Education fully established ; presentation of the plan for schools (BM&Fbovespa and WG)

4. May 08: Creation of the Educational Support Group : Financial Sector, Ministry of Education, Municipal and State Departments of Education. Training in Financial Markets for educators and representatives from Departments of Education (States and municipalities)

5. Sept 08: Seminar at the Central Bank (Brasília) – draft.

6. Oct 08: FE guidelines for schools approved

7. Jun 09: Launch of second phase: pilot project (Secondary Education > program “Mais Educação”)

8. Jun 09 - Feb 10: books + pedagogical project for schools

3

DIMENSIONS

2

Financial Education in Schools4

global

Social Level

Individual Level

SPACE DIMENSION TIME DIMENSION

Future

Present

Past

5

GOALS

2 7

6

Responsible Consumption and SavingKnowledge and tools for

independent decision-makingSocial awareness

Space-related Goals

Time-related Goals

Short-, mid- and long-term planning and decision-making

PreventionEnable social mobility

7

SKILLS

2 7 10

8

Financial planning

S08

Assessing prevention plans

S09

Overcoming financial difficulties

S10

Rights and responsabilities

awareness

S01

Social- and environmental -friendly financial decision

making

S02

Balancing financial wishes and needs

S03

Understanding financial education texts

S04

Independent decision making based on financial needs

S06

Multiplying financial education knowledge

and behaviour

S07 S05

Critical attitudetowards publicity

Skills Web Skills Web

Space-related

Time-related

ACTIONS

2 7 10 140

10

ContentsContents

12

INDIVIDUAL LEVEL

BudgetBudget

PlanningPlanning

Labour & IncomeLabour & Income

13

SOCIAL LEVEL

Supply and DemandIn

tere

st R

ate

Inflation

Unemployment

Marke

ts

Financial System Institutions

SOCIAL LEVEL

INDIVIDUAL LEVELSupply and Demand

Inte

rest

Rate

Inflation

Unemployment

Marke

ts

Financial System Institutions

BudgetBudget

PlanningPlanning

Labour & IncomeLabour & Income

Real-life contentsReal-life contents

discount

free

delivery

no

interest

Formal contentsFormal contents

Real-life and formal contentsReal-life and formal contents

Teaching materialTeaching material

Student’s book 72 Learning Opportunities: formal and real-life contents + activities + self-assessment questions

Teacher’s book a copy of the student’s book + teaching guidelines + further formal contents

20

Met

adat

a –

Tea

cher

’s b

ook

Met

adat

a –

Tea

cher

’s b

ook

FORMAL NAME

Personal expenses

INFORMAL NAME Write it down so you won’t forget itRELATED TOPIC

Daily family life

FORMAL CONTENTS

• Expenses

• Personal and family budget

• Financial planningSKILLS • S6

• S7

• S8ACTIONS • Register and monitor personal expenses

• Estimate the cost of things DESCRIPTION

This activity addresses the need of keeping records of what is purchased and how much is spent on a daily basis to allow greater control over one’s financial life. Students may already be undertaking some kind of register but possibly in an intuitive, inaccurate way and now they will learn to do it systematically.

SELF-ASSESSMENT QUESTIONS

What have I learned?

( ) to write down my expenses on a daily basis

( ) to find out exactly how much I spend each month

( ) to estimate the cost of things I usually spend my money on

Regular selected state schools Evaluation

System

“Mais Educação” Programme schools

Regular selected state schools

Implementation and EvaluationImplementation and EvaluationImplementation and EvaluationImplementation and Evaluation

35

Public Schools supported by Instituto Unibanco (a non for profit organization)

Y

AfterBefore

B’

A

B

t0 t1

A

Intervention

Intervention

ChangeChange

ImpactImpact

Public schools supported by

Instituto Unibanco

Ministry of EducationPrograms:

“Mais Educação”“Ensino Médio Inovador”

Impact Evalution (World Bank)

100 schools 800 – 1200 schools

5 States 19 States (tbd) 4 States

TrainersTeachers

VolunteersInterns

TrainersTeachers

TrainersTeachers

To be defined

Implementation and EvaluationImplementation and EvaluationImplementation and EvaluationImplementation and Evaluation

April-May 2010

16-hour training

Professores Geradores (Teachers)1 por escola

Multiplicadores (Trainers)1 for 10 schools

20-hour distance-learning training

Coaching on line

8-hour training

20-hour distance-learning training

Coaching on line

Jun-Nov 2010

ImplementationImplementationImplementationImplementation

Dimensions:Short-term and long-term:

Knowledge and Competencies (skills)

Attitude (Behavior)

Long-term impact:

Attitude (Behavior)

Exams

(Item Response Theory)

Questionnaire

Follow up

CPF

EvaluationEvaluationEvaluationEvaluation

40

Thank you!Comissão de Valores Mobiliários (CVM)The Brazilian Securities and Exchange

Commission Contact: vasco@cvm.gov.br National Strategy: www.vidaedinheiro.gov.br CVM’s website: www.cvm.gov.br Investor’s website:

www.portaldoinvestidor.gov.br