Building Financial Literacy Skills

through Entrepreneurship

Richard Bernhard

Kenan Institute Asia

OECD Conference

Bali, Indonesia

21-22 October 2008

Agenda• Financial literacy situation

for Thai youth

• Challenges in instilling financial literacy in youth

• Rationale for financial literacy and entrepreneurship

• Money Wise Program overview

• Program results

• Recommendations

Financial Literacy Situation for Thai Youth

• No financial literacy (FL) topics in standard curriculum

• Various FL programs outside curriculum

• Moderate knowledge of FL in Bangkok and limited knowledge outside Bangkok

• Consumer credit has been easily obtained

• Consumerism promoted as engine of growth

• High levels of credit card debt beginning after high school

• Living-for-today attitude still prevails

Challenges to Financial Literacy Education

• Competing education needs including math, science and English focused on entrance exams

• Difficulty integrating FL topics into other subjects in standard curriculum

• Limited knowledge of teachers in FL and economic basics - math skills generally poor

• Non-formal FL education difficult to scale and maintain quality

• Thai’s culture is not driven in result-oriented and independent manner like the West

• Non-school hours available limited

• FL not considered an urgent need

Rationale for teaching financial literacy

through entrepreneurship• 97% of all businesses in Thailand are SMEs, most small

entrepreneurial ventures

• Entrepreneurs often use the personal resources for personal and business expenses

• Entrepreneurship is an interesting and practical vehicle for teaching FL

• Some realization that building entrepreneurship skills can help address youth development and poverty reduction issues

• No FL or entrepreneurship skills building within Thai’s formal and informal education

• Basic personal financial and firm level financial management have many of the some concepts: building assets, setting goals, overcoming financial obstacles, communicating about money, budgeting, credit, role of financial institutions, ethical behavior

• Entrepreneurship builds additional knowledge including start-up and operational costs, revenue sources, capital requirements and financing, developing a cash flow statement, accounting, etc.

Money Wise Young Entrepreneur Program

• Covers all topics of basic personal financial management

• Integrates REAL Entrepreneurship & Youth Leadership Components

• Simplified to fit different youth group (formal vs. informal education)

• Activity-based learning to equip participants with money management, business plan development and presentation skills

• Primary target focus are youth who: oExpect to work for a firm, self-employed, entrepreneurs

oUrban or rural

Financial Literacy Youth Target Groups Primary Education

University Levels (undergraduate/graduate levels

Community Colleges

Vocational Education

Community Level/Public

Secondary Education

Higher Education

Youth Groups

Higher

Secondary

Money Wise Young Entrepreneur

Financial Literacy

FocusCurriculum

Target

beneficiariesApproach

Institution-

alization

1. Entrepreneurship

2. Leadership & Citizenship

1. Money Wise

2. REAL

1. Primary:

Secondary

Students

2. Secondary:

College mentors,

teachers,

private volunteers

1. Interactive

Workshops

2.Coaching

3.Biz Plan

4.Seed grants

5.M&E

1. MOE Schools

2. Student Clubs

Money Wise Partners

K.I.Asia

Youth Clubs

College students

Schools (principals &teachers)

Private Sector

- Financial Support

- Employee volunteers- Project management

- Curriculum development

- Coaching

- Monitoring and evaluation

- Support club setting

- Advise on implementation - Coaching and

advising

- Organizing students ,

planning events, etc.

- Managing resources

- System for replication

Program Development Cycle

Develop Implement Replicate

OCCMoney Wise

Curriculum

Development,

Pilot Testing &

Fine Tuning

Training,

Business Plan

implementation

Lesson Learned,

Project Model

Fine-tuning

Institutionalizing

within

curriculum,

Students Club,

Youth Club

Developing a Financial Literacy Model Through Entrepreneurship

Training and Mentoring

Trainers and Mentors Teachers and

College students

TraineesHigh School Students

Master TrainersK.I.Asia & private

volunteers

Project’s Activities & Learning Levels

Skills or

Behavior Change

Awareness Knowledge Motivation

Training Business Plan Contest Using knowledge

in real life

Continued support and mentoring

Peer network – student clubsResources

Follow-up and evaluation

Money Wise Young Entrepreneurship

Program Results

• Adapted and piloted new FL, entrepreneurship

curriculum

• 165 high school students and 18 teachers in 9

schools trained

• 5 Young entrepreneur clubs established

• 100 students member of through clubs

• 5 business plans competitions completed and

implemented

• 37 private sector and college mentors participated

• 85% student satisfaction rates

Recommendations and Conclusions

• Work to build FL into curriculum in schools & identify more flexible non-formal approach

• Youth ownership in programs important

• Teach FL through practical vehicles that provide real-world skills such as entrepreneurship

• Interactive, activity based-learning best

• Continuous mentoring after the training

• Tap private sector expertise

• Include tangible incentives such as competitions

• Identify structure for sustaining programming such as school clubs

• Obtain vital prinicipal, teacher and parent support

• Make programming fun!

Thank you

Richard Bernhard

Associate Executive Director

Kenan Institute Asia

Queen Sirikit National Convention Center

2nd Fl, Zone D, Room 201/2

60 New Ratchadapisek Road,

Klongtoey, Bangkok 10110 THAILAND

Tel. 662-229-3131; Fax. 662-229-3130

richardb@kiasia.org

www.kiasia.org