PowerPoint Presentation

Financial literacy2016-03-14 @ UBS

Financial literacy from a point of view of a minister of education, not financeSran Verbi @ the Association of Serbian Banks

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Financial literacy

peoples ability to process economic information and make informed decisions about financial planning, wealth accumulation, debt, and pensions.Lusardi and Mitchell, 2014

Something like this was used in S&P 2014 Survey2

1.Suppose you have some money. Is it safer to put your money into one business or investment, or to put your money into multiple businesses or investments?a. one business or investmentb. multiple businesses or investmentsc. dont knowd. refuse to answer

2.Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy less than you can buy today, the same as you can buy today, or more than you can buy today?a. lessb. the samec. mored. dont knowe. refuse to answer

Examples of the questions3

ResultsIs this real?4

It is biased, isnt it?5

If you keep learning, youll be more financially literate.6

OECD started something bigger7

Financial literacy is knowledge and understanding of financial concepts and risks, and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve the financial well-being of individuals and society, and to enable participation in economic life.OECD, 2012

Definition with skills, motivation and confidence8

Well, this is the motivation for the study9

Even genius with all the data can fail to make smart decision10

fintech

We should think about smart, innovative kids who could improve financial ecosystem using technology11

Bitcoin is not only a digital money, but a great concept for working online12