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

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

Anabela MesquitaPaula Peres

Luciana Oliveira

TEEM’15TECHNOLOGICAL ECOSYSTEMS FOR ENHANCING MULTICULTURALITY

AGENDA | TEEM’15

• Contextualization

• Financial education

• eFinLit• Aims and objectives• Results• Partnership• State of the Art and Gap Analysis• SWOT• Future work • Conclusions

14/01/2016Anabela Mesquita, Paula Peres, Luciana

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• Economic turbulence

• Market shortcoming

• Escalating number of low income

• Unemployed young adults (largest disadvantaged group in the EU society)

INTRODUCTION | TEEM’15

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 Literacy14/01/2016

Anabela Mesquita, Paula Peres, Luciana Oliveira

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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 literate

• person will have some basic knowledge of key financial concepts and

the ability to apply numeracy skills in financial situations.

FINANCIAL LITERACY | TEEM’15


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


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Identify and address specific needs of EU citizens in financial literacy

Utilize ICT tools and digital literacy to improve EU citizens’ competencies in dealing with financial issues

Develop a partnership model of a wide range of expert organizations in the fields of training, online learning and literacies

Address the challenges of financial management generated by the current economic transformations taking place in EU

Meet the basic objectives of EU 2020 strategy such as social cohesion through digital literacy

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AIMS AND OBJECTIVES | TEEM’15


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PARTNERSHIP| TEEM’15

Portugal – ISCAP School of Accounting and Administration of Porto(Coordinator) (Higher education institution)

Cyprus – INNOVADE LI LTD(Enterprise)

Itália – 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 kvalifikáciu a vdelávanje(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 2016


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• Carry out a transnational eFinLit state of the Art and gap analysis

• Develop 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 Entrepreneurship

• The 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 application

The 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 Media

• Development of an adaptation toolkit

EXPECTED RESULTS| TEEM’15


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STATE OF THE ART AND GAP ANALYSIS: Results


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• 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| TEEM’15


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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| TEEM’15


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What are the most useful learning formats

Legend: 7.1. eLearning – all online | 7.2. blearning | 7.3. Face to face.



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Freq. %

Use computer ormobile Every day 67 88,2

Internet Access Yes 67 88,2

Smarthphone Yes 53 69,7

No 14 18,4

Tablet Yes 37 48,7

No 28 36,8

Devices used to access internet



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Characteristics/facilities of online courses

Legend: 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.



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• 7 entities / organisms concerning financial literacy

RESULTS – FOCUS GROUP| TEEM’15


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STRENGHTS WEAKNESSES

National Plan of Financial Literacy

Emergence of different players in this area in the market

Citizens are aware of the need to be financially literate, when askedabout their competencies to manage personal finances

Project to develop didactic materials concerning financial literacy

Massive training can be implemented through online courses,allowing for an increased reach of individuals

Cost of online training may be lower than traditional courses

Values and ethics (key players oriented in order not to feelresponsible for the lack of information of public)

Lack of transparency and conflict of interests

Different audience profiles

Reduced number of free courses on financial literacy

Unavailable free online training on financial literacy

Lack of efficient communication initiatives aimed at citizens financialawareness

Lack of people’s financial planning and savings habits, which are notincorporated or fomented in early stages of education

OPPORTUNITIES THREATS

Young people are not yet aware of their need to develop personalfinancial management skills

Easy access to Internet

People (target) proneness to digital environments and technologies

People have easy access to mobiles smartphones and computers

Global increased sense of concern with current and future financialsustainability among people, as a result of social and economic crisis

Online training offers better adjustment to personal and professionalfast pace and social demands, allowing people to adjust schedules

Online training can provide multiple user interfaces/learning flows tobetter adjust to different audience profiles

There is not a free online course on financial education for thespecific target

Global economic and social crisis

Lack of habits of lifelong learning

Lack of experience and trust in distance learning

Low level of digital literacy

Cultural issues

People lack of interest, motivation and habits concerning the searchfor financial information/strategies/training

Increased consumerism habits, as a result of companies’ aggressivecommunication and incentives to market their products during aperiod of crisis

Tendency to contract personal credit on regular basis

Accelerated pace of contemporary life, work and social demandsleave out very little time for LLL.

RESULTS – SWOT ANALYSIS| TEEM’15


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• 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 Math

FUTURE WORK| TEEM’15


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TEMPLATE PEDAGOGICAL STRUCTURE

STEP BY STEP VIDEOS

EXAMPLE OF THE CONTENTS | TEEM’15


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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| TEEM’15


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THANK YOU!Anabela Mesquita

([email protected])

Paula PeresLuciana Oliveira

TEEM’15TECHNOLOGICAL 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."


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• The development of basic and transversal skills: improve the digital, basic math, andfinancial skills of young adults, will indirectly improve their language and reading skills

• The promotion of Innovative and student-centered pedagogical approaches: deployinnovative, student-centered, ICT based pedagogical approaches, such as the eLearning,online games, peer to peer support, and educational technology tools that are based on theself-interest and paste of the students

• The development of appropriate assessment and certification methods: support bothformatting and summative assessment methods, based on the ECTS. Online certificates willbe provided to the eFinLit students upon completion of each module, accredited by the HEand training institutions of the eFinLit consortium of partners

• The design and implement assessment of the eFinLit transversal skills as noted above

SPECIFIC OBJECTIVES | TEEM’15


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• To provide tangible learning outcomes: The learning outcomes will immediatelybecome visible in the everyday life of the young adults

• The validation of non-formal and informal learning: encompasses a series ofcomponents related to non-formal and informal learning such as access to online data andgames, use of multimedia, forums and social networks. The partners will validate theseactivities provide online certificates to the users

• The improvement of funding approaches for skills development: would potentiallybe an improved funding approach for skills development, since through the development ofsophisticated, innovative online educational resources and tools can build a wide range ofskills of EU citizens.

SPECIFIC OBJECTIVES | TEEM’15


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