In recent years, developed and emerging economies have become increasingly interested in the level of financial literacy of their citizens. This has coincided with an increase in many households’ exposure to financial markets (e.g. via their retirement savings), shifting demographic profiles including the ageing of the population, and growth in the complexity and range of financial products available. Furthermore, economic and technological developments have brought greater global connectedness and massive changes in communications and financial transactions, as well as in social interactions and consumer behaviour. As a result, financial literacy is now globally acknowledged as an important policy priority.17
In 2005, the Organisation for Economic Co-operation and Development (OECD) stated that financial education should start at school and as early as possible.18 In recognition of the increasingly global nature of financial literacy and education issues, the OECD created the International Network on Financial Education (INFE) in 2008. Developing analytical and comparative studies, methodologies, best practice case studies and guidelines have been key priorities for its work. This Framework has drawn on the INFE’s work to ensure it is consistent with international best practice in its scope and content.
The INFE has identified strengthening financial education programs in schools and the international measurement of financial literacy, including through the Program for International Student Assessment (PISA), as top priorities. As part of PISA 2012, the OECD is conducting the first large-scale international study to assess the financial literacy of young people. Australia is participating in this study.
See www.australiancurriculum.edu.au/ for information about the role of the general capabilities and the Recommendation on Principles and Good Practices for Financial Education and Awareness (OECD, 2005).
