Brussels (Brussels Morning) The European Commission EC and the Organisation for Economic Co-operation and Development (OECD) have joined forces to promote and provide financial education for adults.
They released details of their joint financial competence framework for adults on Tuesday, the aim being to improve the financial skills of adults, according to an EC press release.
The EC stressed that the framework will support public policy development and financial literacy courses as well as educational institutions and the financial industry.
It noted that a better understanding of finance helps citizens to participate in financial markets with greater confidence and more safely as they enhance their ability to manage their personal finances more effectively.
The Commission observed that the proposed framework lists important skills that can help citizens make good financial decisions, while it builds on previous financial literacy frameworks and integrates sustainable finance and digital skills.
The European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, Mairead McGuinness, stated that “equipping people with the know-how to make informed decisions about their personal finances promotes financial well-being and a more assured participation in financial markets.”
“This is all the more important given the increasing digitalisation of finance”, she continued, pointing out how current levels of financial literacy in the EU “are regrettably low, and disproportionately impact the most vulnerable in society.”
The Commission indicated that along with the OECD it plans to focus on promoting the framework among authorities and practitioners in EU member states. Initial meetings are to be held early this year.
The Commission noted that the framework was developed in cooperation with EU member states and experts, who provided their input through a dedicated subgroup of the Government Expert Group on Retail Financial Services. It called on authorities in the bloc and other stakeholders to focus on the task, declaring that the framework would provide a common terminology and evaluation tools, and would help to identify gaps in the provision of training.
The EC and the OECD are soon to start drawing up a children’s financial competence framework for completion next year.