What is financial literacy
What is financial literacy?
Financial literacy has often been defined purely in terms of ‘personal financial education’. Concern is frequently expressed about the capability of individuals in managing their own finances and avoiding levels of debt which they are unable to repay. Given the number of people who get themselves into serious financial difficulties this is an important social objective. Schools have their part to play in equipping young people to avoid these problems. However, this approach to financial literacy appears to lay all the responsibility for financial problems on to individuals. In the light of successive financial scandals and the financial crisis of 2008 this is a difficult position to take. There is, therefore, an argument for extending financial literacy to include knowledge and understanding of bank and government behaviour as well as personal financial management. The document below introduces a framework for a broader definition of financial literacy.
Download Financial Literacy Briefing 1: What is Financial Literacy? (PDF, 93KB)
Assessing financial literacy
Assessment is important for teaching and learning in all areas of the curriculum. How else can teachers and students clarify what progress is being made and what to aim for in the future? But assessment tends to have a lower profile ‘non-core’ areas of the curriculum, such as financial literacy. One line of work being followed at the University of Birmingham is the development and evaluation of some assessment items which can be used in schools to assess financial literacy.
Download Financial Literacy Briefing 2: Assessing Financial Literacy (PDF, 123KB)
Consultancy and Presentations
World Bank Report on Budget Literacy
Peter Davies provided advice to the World Bank for their case study on England as part of their report on Budget Literacy in 2016. He was also asked to review the entire report and to take part in a final review meeting. (see https://saeguide.worldbank.org/budget-literacy-campaigns)
Presentation on Pupil agency in learning about debt to the Financial Education Forum Meeting at the Bank of England May 11th 2016
Peter Davies reported on research with John Kirkman on an approach to developing students’ understanding of debt. This approach combines insights from ‘Variation Theory’ with a lesson design that gives agency to the pupil.
Download Powerpoint presentation
All-Party Parliamentary Group on Financial Literacy
Working with colleagues from CHASM (Professor Andy Lymer and Dr. Lee Gregory) Professor Peter Davies reviewed the submissions in 2016 to the All-Party Parliamentary Group on Financial Education. This work contributed to the report produced by the APPG
Download the report