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2

Economic Classes

Income (R$) Population 2009(mi)

Population2009-2003

∆ (mi)

Class A 6,329 - 9.60 3. 25

Class B 4,854 – 6,329 10.37 2.39

Class C 1,126 – 4,854 94.93 29.06

Class D 705 - 1,126 44.45 - 2.43

Class E 0 – 705 28.84 - 20.48

Changes in income distribution

The “new” middle class: 94,9 mi (50% of the population)

Source: Fundação Getúlio Vargas (FGV). The New Middle Class: The Bright Side of the Poor (http://cps.fgv.br/en/nmc)

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The case for a National Strategy

1. Changes in income distribution are likely to persist and will have impacts on each market (newcomers).

2. This goes beyond the role of one sole agency.

3. Financial Education should be included in a general effort (partnerships) to increase the financial capability of the population.

4. A National Strategy may provide the framework to integrate programs: sectoral (investments, credit, pensions etc.) and cross-sectoral.

5. Financial literacy (personal finance) in large scale: target children and young people at school.

6. That will not be efficiently reached by a sectoral program alone (e.g. investor education).

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Timeline – National Strategy on Financial Education

ä 2006: Creation of COREMEC (Supervisory and Regulatory Committee of Financial Systems, Capital Markets, Private Insurance and Social Welfare )

ä 2007: COREMEC working group (coordinated by CVM) to draft a National Strategy on FE with partnerships

ä 2009: draft of the National Strategyä Jan/10 : launch of pilot project in schools (secondary

education)ä Dec/10: National Strategy approvedä Apr/10: members of the National Committee for

Financial Education appointed

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Partnerships

ä National Inventory of FE projects (70)

ä National Survey on Financial Literacy

ä Website: www.vidaedinheiro.gov.br

ä Pedagogical support group: financial + educational sector

ä Pilot project on schools (coordinated by CVM + Central Bank, Private Insurance Regulator and Pension Funds Regulator)

National Strategy for Financial Education

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CONEF

(GAP)

Schools

OtherProjects

Decree # 7.397 of 2010

Sectorial Programs

Crossectorial Programs

FE in Schools Other

Association

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Financial Education in Schools

global

national

regional

local

individual

Social Level

Individual Level

TIME DIMENSION

Future

Present

Past

SPACE DIMENSION

v Responsible Consumption and Savingv Knowledge and tools for independent decision-

makingv Social awareness

ä Space-related Goals

Financial Education in SchoolsGoals

ä Time-related Goals

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

v Preventionv Enable social mobility

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Financial Education in SchoolsGoals

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

Space-relatedTime-related

Skills Web

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

Teaching Material

States

TREATMENT GROUP CONTROL GROUP

Municipalities

Schools Students

 

Municipalities

Schools Students

CE 24 62 2012   23 60 1959

DF 1 32 1105   1 32 1112

MG 6 14 360   10 15 371

RJ 42 134 3513   47 136 3752

SP 14 180 5741   34 192 6037

TO 12 17 505   13 17 514TOTAL 99 439 13.236   128 452 13.745

Financial Education in SchoolsImpact Evaluation in 2010

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CHALLENGE: multiple actors•5,560 municipalities (primary schools)•27 states (secondary schools and primary)•Union (universities)

OPPORTUNITY: Educational Support Group:• 1 representative for the 27 states• 1 represent. for the municipalities• 1 represent. Ministry of Education• Financial regulators• SROs + associations etc.

Resulting pilot project900 schools

Financial Education in SchoolsImpact Evaluation in 2010

Challenge in a Federation:

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Impact Evaluation

Survey Instruments (baseline: AUG10 / follow-up: DEC10/next: NOV11)

ä 1. Financial Literacy Test: designed to measure financial literacy (competences and abilities)

ä 2. Behavior and attitudinal questionnaires to students: v Socioeconomic information;v Financial decision-making and behavior (familiarity, use and

access to financial products; savings and investments behavior);

v Attitudes towards the financial world (propensity to save, consumption autonomy)

ä 3. Parent’s questionnaire: socioeconomic data of the student’s household, financial profile and behavior of student’s family, knowledge and access to financial products.

Next Stepsä Parent’s workshop (1st semester 2011): in treatment schoolsä Mai 9-10, International Workshop (Rio de Janeiro):

preliminary results from financial education in schools project.

Treatment Group:24 municipalities

62 schools2.012 students

Ceará

32 schools1.105

students

Brasília

6 municipalities14 schools

360 students

State of Minas Gerais

42 municipalities134 schools

3.513 students

Rio de Janeiro

14 municipalities180 schools

5.741 students

São Paulo

12 municipalities17 schools

505 students

Tocantins

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Thank you!

National Strategy: www.vidaedinheiro.gov.br