Financial Education in Poland


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This presentation focus on financial and economic education programs developed in Poland 2002-2009 and focus on various issues important from a point of view of organizer of Financial Literacy action or policy-maker.

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Financial Education in Poland

  1. 1. + Financial Education in Poland Design, organization and delivery channels. Overview and cases. Marcin Polak, Think Point Poland Former Head of Economic Education of the Polish Central Bank (2002-2007)
  2. 2. + 2 We are not born knowing how to manage money - we must learn it. And that education is a critical foundation upon which many other life skills are built. Knowing how to budget, save and use credit wisely are the financial equivalents of driving at the speed limit, using a seatbelt, and stopping at red lights. They both dramatically increase the chance that you will reach your destination safely. David Michelman, VISA Inc.
  3. 3. + 3 !! According to the European Commission reports (2008) the problem of financial exclusion in Europe is visible: !! 20% of adults in EU-15 and 47% in 10 EU new member states do not have a bank account (unbanked) [Poland – 56%]; !! in addition 8% in EU-15 and 6% in new member states have only a deposit account with no payment card or cheque book (marginally banked); [PL-2%] !! 40% of EU-15 adults and 73% of those in new member states had no access to revolving credit (credit card or overdraft); [PL-73%] !! 30% of EU-15 adults and 54% of those in new member states did not have any savings products [PL-60%]. !! Financial exclusion refers to a process whereby people encounter difficulties accessing and/or using financial services and products in the mainstream market that are appropriate to their needs and enable them to lead a normal social life in the society.
  4. 4. + Financial consumers too often do mistakes in this 2 globalized world, where hundreds of new financial instruments are available for small investors. In many cases they are simply financially unaware – they don’t know basic products in the financial market. They take wrong decisions, or they follow advisors, not being able to assess, if the offer is good for them.
  5. 5. + 13 !! No National Financial Education Strategy and no will on the public administration side to do that; !! Some public institutions developing financial education programs (the central bank, the stock exchange, the financial supervision authority); !! Several private companies from the financial sector involved in nationwide or local FE programs. !! No mandatory financial education program at schools (no learning framework). No FE programs for adults. !! Quite many FE initiatives in the non-profit sector/schools.
  6. 6. + 5 !! For last seven years, running several programs a year, I have used at least 15 models of delivering financial knowledge to various target groups – from simple to very sophisticated ones, including electronic delivery tools.
  7. 7. + 6 !! This is not enough, I feel we must develop again and again new methods. Why? Because the (social) education process in 21st Century requires more innovations. !! Web2.0 (blogs, wikis, social networking, etc.), podcasts, m-learning and e-learning do influence the development of collaborative and informal learning environment worldwide. !! A newworld of learning is appearing, and a new learner wants new approaches (products). To find effective way of educating financial consumers, we need to introduce new channels of communication and learning.
  8. 8. + 7 !! Being 21st Century educators, we must think not only about the quality of the teaching/learning process but about proper communication channels to deliver personal finance knowledge too. !! This is a new dimension of effectiveness. If we want to be effective, we must develop new tools for education – like blogs, m-learning courses, podcasts, vodcasts, e-books, audiobooks, and various mass media forms apart of traditional tools (textbooks, leaflets, informational websites).
  9. 9. + 8 !! Just look around – a new world of learning offers great opportunities to deliver financial education to people - only mentioning some tools in the Internet: YouTube, iTunes, Scribd, Slideshare, Digg, Facebook, Digital TV and other. !! Development of communication technologies and broader and faster Internet offers channels of delivery that have never been used by educators in the past. We face digital student and we need to adapt to his/her needs.
  10. 10. + Yet we can disseminate financial knowledge... we can learn personal finance… W-W-W Whatever, Wherever, Whenever Yes, We Can!
  11. 11. + 10 !! Do you have any survey results? The reason for an action. !! Direct or indirect financial education (training vs. edutainment) !! Formal or informal education (training vs. playing; learning at/out of school) !! Economic psychology involved (different layers of economic awareness) !! Target groups (direct beneficiaries or intermediaries, e.g. journalists) !! Tools/Effectiveness (standard or interactive) !! Channels (traditional or new media) !! Range (how broad; what is your budget?) !! Time factor (single shots does not work; repeating)
  12. 12. + 11 !! The Wallet Education Concept. “Translate the financial knowledge for ordinary people” !! All economics must be shown in action. While explaining economics focus on the money issues - in that light a wallet is the link between a person and a particular economic mechanism. !! Think how to enlarge an action or combine it with other projects. You are able to plan and launch successful actions of nationwide range. !! Do not afraid of innovations. Think big.
  13. 13. + 12 Lifelong learning !! According to various surveys informal education is 80-90% of all learning processes today. !! Lifelong learning requires most of learning activities to be done informally throughout the whole life. This especially applies to personal finance education – we need “FE lifelong learning framework” !! Modern digital devices, mass media, Internet and social networking etc. are yet natural learning environment for many people – this must be considered while planning any educational activities for FE. !! Surveys in many countries confirm that people want to learn economics and finance from the Internet, mass media, and so called new media.
  14. 14. + 14 !! In this presentation I will present several ways of disseminating financial knowledge in Poland through popular channels. !! One remark must be stated: people (and financial consumers) don’t like [boring !] talking heads in any programs. They usually look either for something very practical and useful, or for entertainment.
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  16. 16. + 16 "!„Gold for the Bold – Poles & Money” was a 120 minutes long dynamic television show on Sunday evening in the TVN - most popular private television in Poland (February 2006). Viewers had opportunity to test their knowledge on money and personal finance issues. "!The program was based on a format used by the Dutch TV producers for such nationwide television shows. "!The test of financial knowledge was addressed to an average viewer and to make it more attractive, each question was illustrated by a film material from famous comedies or cabaret scenes. Just to offer more fun for viewers.
  17. 17. + 17 "!To organize the show a large film studio was rearranged to host a group of 100 players, media celebrities and organizers. There were four teams in the studio competing to get the financial prize. Each team was lead by two popular TVN celebrity stars. "!There were several fields of economics chosen as test areas, among them: money and monetary policy, personal finance (savings and investment). "!The test questions were programmed not solely to deliver knowledge, but also to offer entertainment and fun to viewers, and to attract people’s attention to important personal finance issues.
  18. 18. + 18 "!The test competition was not only in the studio but also online. The main prize was a car sponsored by the car company. "!Results of the show: #! Main television show – 8 Million viewers; #! Press inserts to popular TV Program weekly, including a test form for those willing to participate in the test – 800.000 copies; #! 10 educational articles in the main Polish daily Gazeta Wyborcza and one of the most important weeklies Wprost, #! The web site visited by 250.000 people; 102.000 solved the test online at the same time when program was broadcast in TVN.
  19. 19. + 19 …and more results: #! Radio programs devoted to personal finance issues in the Polish Radio Program 3 got on average additional 750.000 listeners. #! A special set of materials was sent out to 2500 high schools. It comprised a game-like scenario for a lesson on personal finance. Students were to solve a test in the classroom. In each class four teams were established to force the competition. Close to 53.000 students completed that test. #! In the promotion campaign in the TVN television altogether 227 advertising spots were broadcast with intensity 50% higher than in an average advertising campaign. Effectiveness – Gold for the Bold brought an average increase of knowledge of 5,62 % (after watching). In a fortnight another test measured the indicator again - an average increase of knowledge was 2,96 %. Within younger population the increase of knowledge was up to 10,11%.
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  21. 21. + 21 "!There was a 3,5 week educational TV campaign on personal finance education launched within Christmas and New Year’s Day period (2006/2007), in four channels of the TVN television. "!The reason was obvious - to focus on „unpopular” topics near Christmas time – savings and responsible financial attitudes, or reasonable spending. "!To get the viewers the ‘eduvertisements’ were prepared - short interviews with popular media celebrities prepared, explaining why (and how) they try to save in that particular time. Each interview was up to 90 seconds and viewers could easily discover that even famous celebrities have often similar problems to theirs.
  22. 22. + 22 "!The discussion was very practical. It concentrated on issues that are common for most of us – what is better – a credit card or money in the wallet, what are benefits of having a home budget, how to save and invest, what credit is best for buying a flat, etc. "!These six eduvertisements were broadcast 266 times on four TV channels of the TVN. People loved that form of education – an estimated number of people who watched at least 3 scenes was over 10,5 Million people. Effectiveness: after watching episodes, the increase of knowledge among adults was 13,9% (and in a fortnight without watching again the program 11,8%); the increase of knowledge among young people was 18,6% (and two weeks later: 19,8%).
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  24. 24. + 24 "!A form of viral marketing to promote economic and financial education issues in the Internet. 60 short films were produced, presenting an economic context in everyday situation. "!Indirect education. People should start thinking about what they have seen. Increasing people’s awareness of issues that have significant influence on their lives. "!The portal was popular – it was visited by over 4,5 Million Internet users within 6 months. Each film was viewed on average by 120.000 users. Effectiveness: after watching episodes, the increase of knowledge among adults was 17,5% (and in a fortnight without watching again the program 21,8%); the increase of knowledge among young people was 15,3% (and two weeks later: 17,4%).
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  27. 27. + 26 !! One of the most popular way of educating students in middle schools – animation movies, on average 8 minutes long, each telling a story about a single Economic Term. Altogether 36 cartoons, financed by the NBP, constitute the original and unique Multimedia Economic Glossary. !! Since 2004 over 25.000 students took part in educational projects based on this series. !! Many cartoons devoted to financial issues: credits, savings and investments, insurance, interest rates, retirement, electronic payments.
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  29. 29. + 28 !! Due to the impact on the economic knowledge of society, several groups of professionals should be beneficiaries of the economic and financial education training programs. !! Economic and financial journalists are among most important intermediaries in educating the society (maybe more important than teachers?) !! In 2005-2006 a group of 174 journalists was trained in Poland to be better prepared to explain the economic and personal finance issues to general public. Now a similar project is being implemented in Kazakhstan.
  30. 30. + 29 "!New methods of learning implicate the way the knowledge and skills are delivered to learners. "!As financial knowledge is one of the major life skills, informal, indirect or edutainment methods seem to be good ways of delivering that knowledge to large audience. It must be an attractive form of learning, and must use multi-channel communication, so people will be able to learn from different channels. "! As we live in the Age of Information, journalists /media must not be excluded from the financial education programs. In many cases they can multiplicate the results of educational program, disseminating knowledge to millions.
  31. 31. + 30 "!Leadership (Decision Maker) Mr. Leszek Balcerowicz The Governor of the National Bank of Poland (2002-2007) Economist, Deputy Prime Minister, author of economic reforms that transformed Polish economy into the market economy
  32. 32. + 30 "!To develop a nationwide system of financial education ACTION FROM THE TOP (financial resources) (Government, Central Bank, Financial Supervision, Consumer Protection Agency) effective financial education is somewhere here! = CREATE PARTNERSHIPS GRASSROOT ACTION (projects, contents) (non governmental organizations, schools, universities, companies)
  33. 33. + 31 "!Repeating (single shots does not work) Ebbinghaus curve – how we forget in the learning process (= 1/2 of the material in first 2 hours) memory But if we repeat, the message is still remembered. days
  34. 34. + 32 "!Financial literacy is a life skill – people should be educated from pre-school organizations to retirement. Financial education is a lifelong learning. Implementing just financial education at schools is not enough – as clearly US case shows. What is the effectiveness of education if on average a US college student has a debt of 25.000 USD? Adults are important target group – their behavior is much more important for the economy. Call for nationwide education to increase financial awareness and capability of adults.
  35. 35. + 33 "!Tell me and I will forget it. Show me and I will forget it. Engage me and I will remember it. Confucius Apply means of communication, tools and methods that not only are appropriate for a specific target group. Mix this methods and tools in a single action, support interactivity, motivate your target group to engage in the action, repeat, evaluate, modify, combine, expand... Think in long time perspective. This is a key issue for the effectiveness of the FE programs.
  36. 36. + 16 Thank you Marcin Polak Think Point Ltd. Consumer Education & Communications Aleje Niepodleglosci 186 00-608 Warsaw, Poland © 2009 All Rights Reserved Think Point, Warszawa, Poland Autor: Marcin Polak; zdj!cia z serwisu