Providing High Quality Financial Education in School,Innovative Practices and Effective Approaches

- Malaysia’s Experience

Ooi See Eim Consumer and Market Conduct DepartmentCentral Bank of Malaysia 21 April 2016

Common Elements: Essential financial skills and knowledgeBudgeting Saving Spending Managing

debtInvesting Managing

riskRights &

ResponsibilitiesProducts &

services

Unexpected Life Events – e.g. losing job/money, untimely demise, divorce and receiving a windfall

Financial education (FE) in Malaysia targets key life events throughout life stages

LifeStage

School Tertiary Education

Entering Workforce

Starting a family

Raising a family

Retirement

Example of Key Life

Events

• Open and operate bank account / pocket money mgmt.

• Online purchases

• Obtain study loan

• Getting a part-time job

• Use credit card

• Buy a car/house

• Pursue hobby

• Provide guarantee

• Pursue investments

• Plan for marriage/ honeymoon

• Have a baby

• Childcare

• Purchase insurance

• Children’s education

• Family recreation

• Change job

• Healthcare

• Support immediate & extended family

• Planning for Retirement

• Managing retirement fund

• Support dependents

• Pursue hobbies/ part-time job

• Estate planning

2

1997

1998

20041999

2014/15

Pocket money book

School financial

club

Financial education website

FE in school evolved from co-curriculum activities to learning in classroom to ensure sustainability and effectiveness

School adoption

programme

Integration of FE elements in

school curriculum

2016 and beyond

• Schools adopted by financial institutions (Fis)

• Activities carried out by Fis to enhance knowledge on banking and basic financial matters

• Participated by about 10,000 government-aided schools

• Buku Wang Saku (pocket money book), a tool to educate and assist school children to manage their pocket money and to take control of their finances

• 14 million copies distributed

• Integrate FE in curriculum for primary schools, starting from year 4

• Core subjects (e.g. English Language, Malay Language, Mathematics)

• Engage school heads, equip teachers with financial management knowledge and skills

• Develop FE modules, lesson plans, textbooks

• A platform for FIs to educate school children on personal money management

• Children engaged in money and finance related activities through workshops, visits to FIs and knowledge-sharing sessions

• www.duitsaku.com an interactive online financial education tool aimed to enhance financial literacy among school children

• Comprise of interactive financial games, quizzes, financial calculations, online pocket money book

• Total membership of about 113,000

2016• Elevate FIs’ roles as technical experts for reference by teachers

• Develop FE portal with dedicated sections for school children and teachers

• Assess on implementation of FE in curriculum

2017Integrate FE in curriculum for secondary schools

2021Full integration of FE elements in all school levels

Phased-in roll out of FE elements into new school curriculumFE in schools via co-curriculum

activities

3

Financial literacy elements to empower children to build, manage and protect personal wealth

FL2: Financial

Responsibi-lity and Decision Making

FL1:Money, Source of

income and Career Choice

FL3:Money Manage-ment and Planning

FE ElementsFL4:Savings

and investment

FL6: Risk Manage-

ment, Wealth

Protection and

Insurance

FL5: Credit and Debt

Management

• Definition of money, sources of income

• Factors affecting income eg demographic background, taxation, etc

• Types of payment instruments• Income vs spending decision

• Make personal financial decisions• Usage of financial information• Consumer protection law• Definition of contracts

• Identify needs and wants • Set financial goals• Create and record

financial plan • Alternatives and

consequences of financial decisions

• Benefits of savings/investments including build wealth, achieve financial goals, financial well-being

• Definition and types Investments

• Risk and return concept• Depositors and investors

protection

• Definition and types of credit instruments

• Responsible credit management• Rights and responsibilities as

borrowers • Avoiding debt trap and address

credit problem.

• Protection of identity• Common types of risks and basic risk

management• Purpose and importance of

insurance/takaful protection• Types of non-insurance protection

Complexity increased progressively according to school levels

4

5

Factors contributing to successful implementation of FE in schools

Collective efforts

are importan

t

Ministry of Education as implementor

Establish and grow enabling infrastructure

Central Bank plays leadership role

• Perseverance in pursuingFE in school

• Commitment- technical advice & financial support

o Develop FE standards o Trainings/workshops

• Resource person in capacity building

o TOT for teachers

• Support development of teaching aids

o Teachers’ guideso Text books

• Exposure to school heads

• Buy-in and understand importance of FE from young

• Leverage on revision of curriculum

• Support development and use of teaching aids

• Implement training of teachers

• School adoption programme

• FIs as technical experts for teachers’ reference point

• FE in co-curriculum o Pocket money book to inculcate

habits to keep financial recordso www.duitsaku.com an

interactive online financial education tool

• BNM Money Museum and Art Gallery