Introducing National Strategy for Financial Capability

1. IntroducingNational Strategy for Financial Capability

2. 2 Who is the FSA ?

3. 3

4. 4 National Strategy In March 2006 the FSA launched a National Strategy for Financial Capability, which set out a five year programme of activity. In July 2008, this was supplemented with a Joint Action Plan for Financial Capability � Helping you make the most of your money (issued jointly with HM Treasury). Our vision is for �better informed educated and more confident citizens, able to take greater responsibility for their financial affairs and play a more active role in the market for financial services�.

5. 5 Our programme of action Schools: Learning Money Matters Government is mainstreaming personal finance education (PFE) in the maths curriculum, with effect 2008/09 � 2010/11 QCA and Government are clear that financial education should also be embedded more broadly across the curriculum Teachers need to be capable and confident - pfeg (Personal Finance Education Group) will ensure teachers and schools are equipped to deliver high quality PFE Aim to have reached 1.8 million children in 4,000 schools by 2010/11 270 schools (compared with a target of 500 for 2006/07) have already signed up to Learning Money Matters Working with devolved administrations to explore best ways of taking the work forward in Wales, Scotland and Northern Ireland Helping Young Adults Make Sense of Money Three strands: Higher Education: 19 early adopter universities are signed up to adopt and adapt the Roehampton University pastoral support toolkit (Money Doctors) successfully piloted in 2005/6 Further Education: from January 2007, will prepare to work with 10 FE colleges from 2007/08 academic year to adopt and adapt curriculum offer and Money Doctors toolkit Not in Employment, Education or Training (NEET): providing training developed (with FSA funding) by Citizens Advice and by Fairbridge to 12 intermediary organisations which support NEET Young Adults including: Glasgow City Council, Westminster City Council, NCH, Turning Point and Prince�s Trust Workplace: Make the Most of Your Money The model - All staff receive financial information pack (covering budgeting, managing debt and long-term planning � including pensions) and invited to attend presentations - Trained presenters visit workplace to deliver one hour presentations, open to all staff - Staff offered regulated consultations with a financial adviser Successful pilots (Scottish Power, Centrica, etc) Roll out to c 70 employers (reaching 200,000 staff, with 15-20,000 attending presentations) in 2006/07. Aim to have reached 4 million employees, with 500,000 having attended presentations, by 2010/11 Partners include CBI, TUC, Chartered Institute of Personnel Development, Business in the Community presentations: - delivered to employees at 23 organisations - further 24 booked presentations - in discussion with further 150 employers Launch: MMYM is launched by management, with local publicity & HR messages Employee gets MMYM educational material This is an educational programme, not a sales exercise Receipt of material After reading this material, the employee will receive an invitation to a one-hour workplace presentation. This brings the booklet to life. Attendance at presentation Employee: Attends presentation at work may ask questions at presentation. Meets our objective by learning and changing behaviour Evaluation? Consumer Comms Delivering ambitious new consumer communications strategy. Will launch new consumer website - Q4 2006: Will be clear signposting to other relevant sources of help, information and advice Will launch new suite of publications Q2 2007 � impartial information from the UK�s financial watchdog: no selling, no jargon, just the facts Will promote our materials (cf mortgageslaidbare; pensions; moneylaidbare campaigns) Aim to double traffic to FSA website from 2 to 4 million over next 3 years Online tools Financial Healthcheck � launched June 2005, 770,000 users Debt Test � launched January 2006, 550,000 users We are syndicating these and other tools and information via a wide range of channels (taking our materials to the traffic) New parents For new and prospective parents... and, in due course their children Comprehensive and accessible information in one place, various budget calculators, signposts to other information and where to get help, etc Pilot will start in December 2006 through employers Looking at other distribution channels for next stage eg health services, children�s centres Will have reached over 1.5 million new parents by 2010/11 Money advice Money advice � helping people understand, in general terms, what financial issues they need to tackle and what sorts of products/services might help them do this FSA focus will be on helping to equip intermediaries (particularly those dealing with groups whose members tend to have lower financial capability) to provide basic information, advice and signpostingSchools: Learning Money Matters Government is mainstreaming personal finance education (PFE) in the maths curriculum, with effect 2008/09 � 2010/11 QCA and Government are clear that financial education should also be embedded more broadly across the curriculum Teachers need to be capable and confident - pfeg (Personal Finance Education Group) will ensure teachers and schools are equipped to deliver high quality PFE Aim to have reached 1.8 million children in 4,000 schools by 2010/11 270 schools (compared with a target of 500 for 2006/07) have already signed up to Learning Money Matters Working with devolved administrations to explore best ways of taking the work forward in Wales, Scotland and Northern Ireland Helping Young Adults Make Sense of Money Three strands: Higher Education: 19 early adopter universities are signed up to adopt and adapt the Roehampton University pastoral support toolkit (Money Doctors) successfully piloted in 2005/6 Further Education: from January 2007, will prepare to work with 10 FE colleges from 2007/08 academic year to adopt and adapt curriculum offer and Money Doctors toolkit Not in Employment, Education or Training (NEET): providing training developed (with FSA funding) by Citizens Advice and by Fairbridge to 12 intermediary organisations which support NEET Young Adults including: Glasgow City Council, Westminster City Council, NCH, Turning Point and Prince�s Trust Workplace: Make the Most of Your Money The model - All staff receive financial information pack (covering budgeting, managing debt and long-term planning � including pensions) and invited to attend presentations - Trained presenters visit workplace to deliver one hour presentations, open to all staff - Staff offered regulated consultations with a financial adviser Successful pilots (Scottish Power, Centrica, etc) Roll out to c 70 employers (reaching 200,000 staff, with 15-20,000 attending presentations) in 2006/07. Aim to have reached 4 million employees, with 500,000 having attended presentations, by 2010/11 Partners include CBI, TUC, Chartered Institute of Personnel Development, Business in the Community presentations: - delivered to employees at 23 organisations - further 24 booked presentations - in discussion with further 150 employers Launch: MMYM is launched by management, with local publicity & HR messages Employee gets MMYM educational material This is an educational programme, not a sales exercise Receipt of material After reading this material, the employee will receive an invitation to a one-hour workplace presentation. This brings the booklet to life. Attendance at presentation Employee: Attends presentation at work may ask questions at presentation. Meets our objective by learning and changing behaviour Evaluation? Consumer Comms Delivering ambitious new consumer communications strategy. Will launch new consumer website - Q4 2006: Will be clear signposting to other relevant sources of help, information and advice Will launch new suite of publications Q2 2007 � impartial information from the UK�s financial watchdog: no selling, no jargon, just the facts Will promote our materials (cf mortgageslaidbare; pensions; moneylaidbare campaigns) Aim to double traffic to FSA website from 2 to 4 million over next 3 years Online tools Financial Healthcheck � launched June 2005, 770,000 users Debt Test � launched January 2006, 550,000 users We are syndicating these and other tools and information via a wide range of channels (taking our materials to the traffic) New parents For new and prospective parents... and, in due course their children Comprehensive and accessible information in one place, various budget calculators, signposts to other information and where to get help, etc Pilot will start in December 2006 through employers Looking at other distribution channels for next stage eg health services, children�s centres Will have reached over 1.5 million new parents by 2010/11 Money advice Money advice � helping people understand, in general terms, what financial issues they need to tackle and what sorts of products/services might help them do this FSA focus will be on helping to equip intermediaries (particularly those dealing with groups whose members tend to have lower financial capability) to provide basic information, advice and signposting

6. 6 The Education Programme Schools � Learning Money Matters Economic well-being and financial capability has become a new strand within Personal Social Health and Economic education for secondary schools from Autumn 2008. Financial capability will be tested as part of GCSE Maths from Sep 2010. FSA is providing funding to Pfeg to help schools and teachers prepare for these changes. By 2011, we aim to reach 1.8mn pupils across 4,000 secondary schools. Universities � The Money Doctors Programme Aims to equip Student Money Advisers with skills to proactively educate students so that they can take responsibility for their finances. We aim to reach all 168 Higher Education institutions in the UK. Colleges � Money For LiFE Programme We are working with 10 colleges to develop and trial a toolkit that support staff can use to provide money help to students through workshop and tutorial activities. We aim to reach 25% of Further Education colleges by 2011.

7. 7 Young Adults NEET Group There are 1.25mn young people in this category in the UK. We offer a free training day with resource pack for youth work intermediaries to help them deliver money management and personal finance skills to young people. We aim to reach at least 20,000 youth work professionals by 2011. Young Adults Website � www.whataboutmoney.info Designed for 16-24 year olds, in response to the baseline survey. From buying their first car, to starting work and leaving home, it has information most relevant to their needs.

8. 8 Partnership Programme The FSA works with a range of non-profit sector bodies to embed financial capability nationally. It addresses the needs of a range of people and community groups, many of whom might otherwise find themselves excluded from the financial system. We now focus on the following sectors: Social Housing Learning Disabilities Mental Health Offending Autism

9. 9 New Parents The FSA has developed a comprehensive information pack for expectant parents. The Parent's Guide to Money provides a one stop shop for information on a range of money matters and signposts parents to additional sources of information. We are aiming to reach 1.5 million parents by 2011. The Guide is being distributed through midwives and additional support is being provided by a range of professionals working with families (e.g. Children Centres and Family Information Services).

10. 10 The Workplace Programme Employee literature

11. 11 Consumer Communications �Moneymadeclear� Our �direct to consumer� strategy provides clear, impartial information to help consumers make better informed decisions about their finances. It comes in two forms: Website � moneymadeclear.fsa.gov.uk It offers practical tips to help consumers get to grips with the financial implications of major life events, and much more. Consumer Guides A wide range of publications covering all aspects of managing your finances written in plain english and provided free of charge. Subjects include: Saving and Investing Borrowing and Debt Protection Retirement Bank Accounts

12. 12 Online tools

13. 13 Money Guidance FSA and HM Treasury to work in partnership to develop Money Guidance Pathfinder � each investing �6mn. Objective � Design, Deliver and Evaluate a money guidance service to reach 500,000 � 750,000 people within two years. The pathfinder will be launched in Q1 2009 in the North East and North West of England. Money Guidance will be offered through the web, telephone and face-to-face. The Government will decide if the service will then be rolled out nationally.

14. 14 Summary FSA works closely with multiple partners to deliver the National Strategy, including government, third sector, consumer bodies, financial services industry and the media � we are grateful for all of their support. We are committed to making progress towards the vision of financially capable citizens and delivering a step-change in people�s knowledge skills and motivation to manage their money. We believe that the seven strands of the National Strategy, now supplemented by the Joint Action Plan will improve peoples� financial capability levels, thereby better enabling them to: Manage their money Keep track of their finances Plan ahead Make informed decisions about financial products Stay up to date about financial matters

15. Questions?