Financial Literacy in Portugal: state of the art and gap analysis

Financial Literacy in Portugal: state of the art and gap analysisAnabela MesquitaPaula PeresLuciana OliveiraTEEM15TECHNOLOGICAL ECOSYSTEMS FOR ENHANCING MULTICULTURALITY

AGENDA | TEEM15ContextualizationFinancial educationeFinLitAims and objectivesResultsPartnershipState of the Art and Gap AnalysisSWOTFuture work Conclusions

09/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira2

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Economic turbulenceMarket shortcomingEscalating number of low incomeUnemployed young adults (largest disadvantaged group in the EU society)

INTRODUCTION | TEEM15

Great need to equip young adult with the tools and skills to manage their income in a way that will sustain their quality of life and financial flexibility at decent levels in the long term

Developing Financial Competencies for EU Citizens Utilizing Online Learning and Digital Literacy

09/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira3

In a scenario of economic turbulence and market shortcoming, where the escalating numbers of low income and unemployed young adults (18-35) constitute a problem, and a challenge to be dealt with in the years to come, a real need for the development of the financial literacy competencies of this target has been identified. This group of EU citizens is one of the largest disadvantaged groups in the European society, constituting almost the 35 % (over 40% for some EU countries) of the total young adults in Europe. According to the Organisation for Economic Co-operation and Development (OECD), economists have already established that low income jobs and unemployment tend to leave a wage scar, whereby someone who is unemployed when they should be at the start of their career can suffer from lower than average wages for decades afterwards [2]. Now, recent research from the OECD shows that youth unemployment and low income also does further damage by undermining pension saving, placing millions of young people across Europe at risk of having an inadequate income when they are older. Improving financial literacy skills of such a disadvantaged group in the EU (e.g. low income and unemployed young adults) can have significant benefits for everyone, since good financial literacy skills help individuals to make the most of opportunities based on their available resources, meet their goals, secure their financial wellbeing, and contribute to the economic health of society. Financial literacy skills would allow people to understand the mechanics of the economy and the market, how to deal with daily financial issues, and protect them from slipping in to extremely negative situations [3].

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Financial education Process by which individuals improve their understanding of financial products and concepts; develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being and protection (OECD)

Financially literateperson will have some basic knowledge of key financial concepts and the ability to apply numeracy skills in financial situations. FINANCIAL LITERACY | TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira4

Developing Financial Competencies for EU Citizens Utilizing Online Learning and Digital Literacy09/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira5

12345AIMS AND OBJECTIVES | TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira6

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PARTNERSHIP| TEEM15Portugal ISCAP School of Accounting and Administration of Porto(Coordinator) (Higher education institution)

Cyprus INNOVADE LI LTD(Enterprise)Itlia CE.S.CO.T. VENETO Centro Sviluppo Commercio Turismo e Terziario(Business association)

Austria E-C-C Verein fuer interdisziplinaere Bildung und Beratung(Training Centre)

Slovenia INTEGRA INSTITUT, Institut za razvoj cloveskih virov(Training Centre)

Slovaquia QUALED obcianske sdruzenie pre kvalifikciu a vdelvanje(Training Centre)

Cyprus CARDET Centre for Advancement of Research and Development in Educational Technology (Training Centre)Spain IEF Institute of Financial Studies(Research Centre)

Started in 2014 and will end in 201609/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira7

Carry out a transnational eFinLit state of the Art and gap analysisDevelop an online curriculum composed of 8 modules: Digital Literacy and Access to Financial Information, Basic Math, Budgeting, Savings, Indebtedness, Credit and Loans, Consumer Rights, Investment and EntrepreneurshipThe identification of these modules was done during the development of a previous project also about Financial Literacy called, FINLICO Financial Literacy Competences for Adults (see http://www.financial-literacy.eu/index.php?id=29)-) Develop an eFinLit online platform and mobile applicationThe eFinLit backbone is based on ICT which include social networking tools, online games, data bases, and a training packages of online self-regulated modules, which will also be available through mobile platforms. These will include:eLearning platforms, WEB 2.0 networking tools, Mobile applications, Digital material, Videos, Online Management Tools, Social MediaDevelopment of an adaptation toolkitEXPECTED RESULTS| TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira8

STATE OF THE ART AND GAP ANALYSIS: Results09/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira9

1st task - determine the state of the art in the provision of training in the areas of digital, financial and math literacies through ICT tools, aimed at young adults. Discussing the gaps in these focus fields and the needs of the target groups among the European partnership.

In order to accomplish this objective a questionnaire was developed. Besides demographic questions we also questioned participants about problems and contingencies they faced/are facing on their financial education, the perception of the importance of the development of qualifications and competences to better deal with financial problems, the strategies and educative formats related with finances and the most important characteristics / facilities they believe that should be incorporated in online courses. PT - collected 76 responses, the majority between 21 and 40 years and employed.STATE OF THE ART AND GAP ANALYSIS| TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira10

The graph reveals how important each one of the financial competencies / limitations are for participants (1=not important; 5=very important).Legend: 5.1. Digital literacy and access to financial information | 5.2. Basic math | 5.3. Budget | 5.4. Savings | 5.5. Indebtedness | 5.6. Credit and loans | 5.7. Consumer rights.

Main problems and contingencies identified in the field of Financial Education. RESULTS - SURVEY| TEEM15

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What are the most useful learning formatsLegend: 7.1. eLearning all online | 7.2. blearning | 7.3. Face to face.

RESULTS - SURVEY| TEEM15

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Freq.%Use computer or mobile Every day6788,2Internet AccessYes6788,2SmarthphoneYes5369,7No1418,4TabletYes3748,7No2836,8

Devices used to access internetRESULTS - SURVEY| TEEM15

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Characteristics/facilities of online coursesLegend: 12.1. Quality of contents | 12.2. Design (graphical part) | 12.3. Browsing | 12.4. Time to load pages/content | 12.5. Easy to read texts | 12.6. Easy to use | 12.7. Availability of FAQ | 12.8. Availability of resources (blog, forum, library) | 12.9. Availability for trainer/tutor | 12.10. Possibility to access via mobile devices | 12.11. Utility/validity of certification.

RESULTS - SURVEY| TEEM15

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7 entities / organisms concerning financial literacyRESULTS FOCUS GROUP| TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira15

StrenghtsWeaknessesNational Plan of Financial LiteracyEmergence of different players in this area in the marketCitizens are aware of the need to be financially literate, when asked about their competencies to manage personal financesProject to develop didactic materials concerning financial literacyMassive training can be implemented through online courses, allowing for an increased reach of individualsCost of online training may be lower than traditional coursesValues and ethics (key players oriented in order not to feel responsible for the lack of information of public)Lack of transparency and conflict of interestsDifferent audience profilesReduced number of free courses on financial literacyUnavailable free online training on financial literacyLack of efficient communication initiatives aimed at citizens financial awarenessLack of peoples financial planning and savings habits, which are not incorporated or fomented in early stages of educationOpportunitiesThreatsYoung people are not yet aware of their need to develop personal financial management skillsEasy access to Internet People (target) proneness to digital environments and technologiesPeople have easy access to mobiles smartphones and computersGlobal increased sense of concern with current and future financial sustainability among people, as a result of social and economic crisisOnline training offers better adjustment to personal and professional fast pace and social demands, allowing people to adjust schedulesOnline training can provide multiple user interfaces/learning flows to better adjust to different audience profilesThere is not a free online course on financial education for the specific targetGlobal economic and social crisisLack of habits of lifelong learningLack of experience and trust in distance learningLow level of digital literacy Cultural issuesPeople lack of interest, motivation and habits concerning the search for financial information/strategies/trainingIncreased consumerism habits, as a result of companies aggressive communication and incentives to market their products during a period of crisisTendency to contract personal credit on regular basisAccelerated pace of contemporary life, work and social demands leave out very little time for LLL.

RESULTS SWOT ANALYSIS| TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira16

Prepare the contents for the curriculum following the guidelines of b-learning.

This curriculum should be concluded (draft version) in October 2015. It will be followed by a pilot test.Basic MathFUTURE WORK| TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira17

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TEMPLATEPEDAGOGICAL STRUCTURESTEP BY STEPVIDEOS

EXAMPLE OF THE CONTENTS | TEEM15

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Financial Literacy has been identified as one of the priority issues in Europe. It is necessary to prepare young adults to face the challenges of a modern society, mainly one that is submerged into a financial crisis. After the struggling with indebtedness, society needs to look now to the young generation and to educate them to avoid past problems. Society has realized now that education is the key (at least one of the keys) to equip citizens with the necessary tools to face future challenges. eFinLit project addresses these challenges by providing for free the so necessary education. Modules will be developed and provided via an online platform for all those interested in improving their financial education skills. Each contribute is one step ahead towards the increased sense of citizenship.

CONCLUSIONS| TEEM1509/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira19

THANK YOU!Anabela Mesquita(sarmento@iscap.ipp.pt)

Paula PeresLuciana OliveiraTEEM15TECHNOLOGICAL ECOSYSTEMS FOR ENHANCING MULTICULTURALITY"The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein."09/10/2015Anabela Mesquita, Paula Peres, Luciana Oliveira20

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