OBJECTIVE
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MoneyQuest aims to create an Online Learning Computer Game that may be used in formal, non-formal and informal education settings, providing a simulated environment in which users (children) are presented with key financial concepts and are required to make decisions regarding the use of money.
This game will be complemented by a Manual and an Guide for Implementation with guidelines for the use of the learning game in-class in order to assist teachers and trainers. |
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BACKGROUND
CONCEPT
The most common definition of financial literacy is the ability to make appropriate decisions in managing personal finances. It refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances.
IMPORTANCE
Financial literacy provides greater control of one’s financial future, more effective use of financial products and services, and reduced vulnerability to overzealous retailers or fraudulent schemes (OECD, 2009).
It should also be noted that financial literacy is essential to enable citizens to fully exercise their citizenship.
EC POLICIES
The importance of improving financial literacy is widely recognized by the EC:
LEVEL OF FINANCIAL LITERACY
In the study “The Case for Financial Literacy in Developing Countries” (OECD, 2009) it’s stated that “….levels of financial literacy worldwide are unacceptably low…”. The EC’s COM(2007) 808 acknowledges this fact, stating that EU consumers demonstrate a low level of understanding of financial matters and of basic economics.
More recently, the PISA financial literacy assessment of students (OECD, 2012) shows that there are important gaps in financial competences in the EU countries covered in the study.
IMPROVING FINANCIAL LITERACY
The study “Survey Of Financial and economic Literacy Schemes In The Eu27” (EVERS & JUNG, 2007) and EC’s COM(2007) 808 gives an insight on the most important initiatives and gaps in financial education in the UE:
More recently (2013/2014) several EU countries have established national strategies for Financial Education, making the way to a common European approach. Still, the actual learning materials necessary to implement these strategies are scarce or inadequate.
WHY FOCUSING ON CHILDREN
It’s often at this age (6-10 yo) that children begin to deal with money; they have to manage their lunch money, their allowance, etc. It is also a good age to stimulate desired behaviours and attitudes regarding the use of money.
The most common definition of financial literacy is the ability to make appropriate decisions in managing personal finances. It refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances.
IMPORTANCE
Financial literacy provides greater control of one’s financial future, more effective use of financial products and services, and reduced vulnerability to overzealous retailers or fraudulent schemes (OECD, 2009).
It should also be noted that financial literacy is essential to enable citizens to fully exercise their citizenship.
EC POLICIES
The importance of improving financial literacy is widely recognized by the EC:
- EC’s Green Paper on Financial Services Policy (EC, 2005) considers financial education to be a priority
- EC’s COM(2007)724 “A Single Market for 21 st Century Europe” presents financial education as an essential component of the effort to ensure that the Single Market can bring direct benefits to citizens
- EC’s COM(2007) 808 highlights the benefits of increased financial literacy at economic, social and personal levels
- DG MARKT created in 2008 an Expert Group on Financial Education
- Europe 2020 strategy stresses the need to tackle financial exclusion and over-indebtedness
LEVEL OF FINANCIAL LITERACY
In the study “The Case for Financial Literacy in Developing Countries” (OECD, 2009) it’s stated that “….levels of financial literacy worldwide are unacceptably low…”. The EC’s COM(2007) 808 acknowledges this fact, stating that EU consumers demonstrate a low level of understanding of financial matters and of basic economics.
More recently, the PISA financial literacy assessment of students (OECD, 2012) shows that there are important gaps in financial competences in the EU countries covered in the study.
IMPROVING FINANCIAL LITERACY
The study “Survey Of Financial and economic Literacy Schemes In The Eu27” (EVERS & JUNG, 2007) and EC’s COM(2007) 808 gives an insight on the most important initiatives and gaps in financial education in the UE:
- The main target groups for current initiatives are children (>15 yo) and young adults (over 60% of the initiatives), leaving young children as a less targeted audience.
- The existing initiatives commonly focus on "money basics", such as how to use a bank account and budgeting skills. Other important issues (e.g the notion of needs vs desires, etc.) are usually left out.
More recently (2013/2014) several EU countries have established national strategies for Financial Education, making the way to a common European approach. Still, the actual learning materials necessary to implement these strategies are scarce or inadequate.
WHY FOCUSING ON CHILDREN
It’s often at this age (6-10 yo) that children begin to deal with money; they have to manage their lunch money, their allowance, etc. It is also a good age to stimulate desired behaviours and attitudes regarding the use of money.
MAIN ACTIVITIES
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EXPECTED IMPACT
- Teachers/trainers and Parents will have access to an innovative and user friendly tool for financial education that can be used in various settings, that also contributes to improve their own financial literacy level
- Children will have access to a tool, at the same time user friendly and entertaining, that enables learning by-doing of key financial competences
- Organisations active in financial education will have a new tool and knowledge to improve financial literacy
- In the future, as children become young adults, we will have more informed citizens, contributing for a healthier European society
