New EU framework aims to improve children & youth financial literacy

A new pan-European financial competence framework has been unveiled that has specifically children and young people in mind.

The European Commission has published the joint EU/Organisation for Economic Co-operation and Developmen (OECD) framework that is designed to help improve young people’s financial literacy so that they are prepared to take well-informed personal finance decisions today and more importantly, later in life.

At its heart is the need to build a shared understanding among EU Member States and practitioners of the essential financial literacy skills that children and youth need. On that basis, says the European Commission, the framework ‘can support the development of financial literacy policies, programmes and teaching material by public, private and not-for-profit stakeholders’.

The Commission and OECD will now focus on encouraging and supporting the uptake of the framework by national authorities, practitioners and other stakeholders. The effectiveness of the framework hinges on establishing a shared understanding of financial literacy among diverse stakeholders across the Member States and their willingness to both use the framework and actively contribute to enhancing the impact of financial literacy policies and initiatives.

‘Our relationship with money starts at a very young age’

Speaking at the framework’s launch event, Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and Capital Markets, said: “Our relationship with money starts at a very young age and habits created when we are young stay with us throughout our lives. That’s why this framework today is so important.

“It’s about equipping young people with the know-how so that they can have an informed and healthy relationship with money and allowing them to take decisions around money that are in their best interest. In an era of increasing financial digitalisation and major economic challenges, including persistent high inflation, being financially savvy is all the more important.

Click here for more information on the framework.