Financial Education
From Open Risk Manual
Definition
Financial Education is the process by which financial consumers/investors improve their understanding of financial products, concepts and risks and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. [1]
In the context of the Financial Competence Framework, Financial Education is a topic in the Financial Landscape subject matter domain.[2]
Competences
Mastering the role of Financial Education in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 455 | Knows where to educate oneself on financial matters | Knowledge |
| 456 | Aware that some sources of financial education may not be impartial and may be hidden promotional material | Knowledge |
| 457 | Develops a habit of life-long learning to improve all aspects of financial literacy and financial well-being | Skill |
| 458 | Makes use of tools designed to improve one's financial literacy and to support financial decision-making | Skill |
| 459 | Motivated to use existing tools (e.g. mortgage calculator, budget calculator etc…) to support financial decision making and improve one’s own financial behaviour | Attitude |
| 460 | Confident in own ability to recognise trustworthy sources of education | Attitude |
| 461 | Confident to pass on own knowledge about money matters [where relevant] | Attitude |
| 462 | Confident to apply lessons learned previously when making new financial decisions | Attitude |
