Lifelong & Community Learning Service

Initiatives to protote financial literacy/capability in the UK

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Key findings

1. FSA (Financial Services Authority) national strategy -Building Financial Capability in the UK

2. Adult Financial Capability Framework (AFCaF)

3. Teaching/Learning resources available

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Building Financial Capability in the UK

• 5 Year Strategy• Linked to other strategies (e.g. Skills for Life)• The strategy focuses on seven themes:1. Schools2. Young Adults3. Retirement4. Families5. Advice6. Workplace7. Debt

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Government Initiatives (1)

Schools• From September 2008 personal finance education

has become an explicit part of the secondary school curriculum

• ‘Economic wellbeing and financial capability’ programmes of study

• Students learn about personal finance through mathematics and citizenship (embedded)

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Government Initiatives (2)

Further Education • Target – a quarter of colleges to begin a planned

approach to their students’ financial capability by 2011

Approach:

1(a).Learning about personal finances alongside vocational and academic courses

1(b). Use personal finance as a context for learning literacy and numeracy

2. Develop a free resource called ‘Money for Life’ (10 colleges)

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Government Initiatives (3)

Higher Education Money Doctors project:• Engages students to take control of their

finances and debt problems• Delivered through Money Advisers

New parents• The Parents Guide to Money – practical,

impartial and free resource

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Adult Financial Capability Framework (AFCaF)

• Developed following the recommendations of the Adult Financial Literacy Advisory Group report

• Launched in 2003

What is it?It is a tool for tutors to help to recognise the differebce between

learners’ needs and plan a programme of delivery

How to use?• Expected to be used as a working document that will evolve • Can be used in different ways

Who is it for?• Money advisers/tutors

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Structure of the frameworkLevel Description Types of learners

B

(Basic)

Basic Understanding and developing Confidence

• Not engaged in making financial decisions/use of financial services

• Need skills to make informed judgements about their money and use of services

D (Developing)

Developing Competence and Confidence

• Have basic understanding and competence in handling financial services

• Have basic knowledge to apply skills to meet the needs

E

(Extending)

Extending Competence and Confidence

• Need the skills and knowledge to understand the wider range of services to make informed decisions about personal circumstances

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Structure of the framework9 components

Financial Knowledge and Understading

Financial Skills and Competence

Financial Responsibility

a) Different types of money

b) Income generation

c) Imcome disposal

d) Gathering financial information and record keeping

e) Financial Planning

f) Risk and return

g) Personal choices and financial implications

h) Consumer rights, responsibilities and sources of advice

i) Implications of finance

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Conclusions

Framework can be used or adapted to do the following:

• To establish the starting point of a learner (Initial Assessment)

• To plan courses in financial capability• To plan differentiation (meeting diverse needs of

learners)• To plan progression across the levels