Difference between revisions of "Financial Competence Framework"
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== Objectives == | == Objectives == | ||
| − | A competence framework | + | A competence framework aims to provide a set of outcome-based competences that can be used to: |
* support the development, implementation and update of national financial literacy strategies. | * support the development, implementation and update of national financial literacy strategies. | ||
| Line 10: | Line 10: | ||
== Joint EU/OECD-INFE financial competence framework for adults == | == Joint EU/OECD-INFE financial competence framework for adults == | ||
| − | In 2021 the European Commission and the OECD-INFE (OECD International Network for Financial Education) started a collaboration to develop a joint EU/OECD-INFE financial competence frameworks for adults. The objective of the EU/OECD-INFE financial | + | In 2021 the European Commission and the OECD-INFE (OECD International Network for Financial Education) started a collaboration to develop a joint EU/OECD-INFE financial competence frameworks for adults. The objective of the EU/OECD-INFE financial competence framework for adults is to promote a shared understanding of financial competences for adults amongst EU Member States and national authorities, educational institutions, industry and individuals. In addition, it provides a basis for a more coordinated approach among EU and national policymakers. By supporting efforts to improve financial literacy, the framework aims at contributing to the overall goal of improving individual financial well-being. The framework focuses on competences pertaining to personal finance. |
| − | competence framework for adults is to promote a shared understanding of financial competences for adults amongst EU Member States and national authorities, educational institutions, industry and individuals. In addition, it provides a basis for a more | ||
| − | coordinated approach among EU and national policymakers. By supporting efforts to improve financial literacy, the framework aims at contributing to the overall goal of improving individual financial well-being. The framework focuses on competences pertaining to personal finance. | ||
=== Content Areas === | === Content Areas === | ||
| − | * [[Money and Transactions]]. This content area covers the knowledge, skills and attitudes related to: the different forms of money and currencies; income; prices, payments and purchases; and the importance of financial records and contracts. | + | * [[:Category:Money And Transactions | Money and Transactions]]. This content area covers the knowledge, skills and attitudes related to: the different forms of money and currencies; income; prices, payments and purchases; and the importance of financial records and contracts. |
| − | * [[Planning and Managing Finances]]. This content area covers the knowledge, skills and attitudes related to budgeting; managing income and expenditure; saving; investing; longer term planning; retirement; credit; debt and debt management. | + | * [[:Category:Planning And Managing Finances | Planning and Managing Finances]]. This content area covers the knowledge, skills and attitudes related to budgeting; managing income and expenditure; saving; investing; longer term planning; retirement; credit; debt and debt management. |
| − | * [[Risk and Reward]]. This content area covers the knowledge, skills and attitudes related to the identification of risks; financial safety nets; insurance; and balancing risk and reward. | + | * [[:Category:Risk And Reward | Risk and Reward]]. This content area covers the knowledge, skills and attitudes related to the identification of risks; financial safety nets; insurance; and balancing risk and reward. |
| − | * [[Financial Landscape]]. This content area covers the knowledge, skills and attitudes related to regulation and consumer protection; rights and responsibilities of consumers; the use of financial education, financial information and financial advice; financial products and services; scams and fraud; understanding of tax and public spending; and external influences on financial decisions. | + | * [[:Category:Financial Landscape | Financial Landscape]]. This content area covers the knowledge, skills and attitudes related to regulation and consumer protection; rights and responsibilities of consumers; the use of financial education, financial information and financial advice; financial products and services; scams and fraud; understanding of tax and public spending; and external influences on financial decisions. |
== Usage in the Open Risk Manual == | == Usage in the Open Risk Manual == | ||
| − | The Open Risk Manual adopts financial competence | + | * The Open Risk Manual adopts an overall financial competence framework to classify (where applicable) entries according to their relevance to specific [[Financial Competence | financial competences]]. |
| + | * [[Sustainable Finance Competence List]] | ||
== References == | == References == | ||
Latest revision as of 16:54, 5 April 2022
Contents
Definition
A Financial Competence Framework is a conceptual basis on which to build a variety of financial education policies and measures towards improving Financial Literacy[1]
Objectives
A competence framework aims to provide a set of outcome-based competences that can be used to:
- support the development, implementation and update of national financial literacy strategies.
- support the design of Financial Education programmes and the development of financial education learning materials and tools.
- facilitate the assessment of financial literacy levels and the evaluation of financial literacy initiatives.
Joint EU/OECD-INFE financial competence framework for adults
In 2021 the European Commission and the OECD-INFE (OECD International Network for Financial Education) started a collaboration to develop a joint EU/OECD-INFE financial competence frameworks for adults. The objective of the EU/OECD-INFE financial competence framework for adults is to promote a shared understanding of financial competences for adults amongst EU Member States and national authorities, educational institutions, industry and individuals. In addition, it provides a basis for a more coordinated approach among EU and national policymakers. By supporting efforts to improve financial literacy, the framework aims at contributing to the overall goal of improving individual financial well-being. The framework focuses on competences pertaining to personal finance.
Content Areas
- Money and Transactions. This content area covers the knowledge, skills and attitudes related to: the different forms of money and currencies; income; prices, payments and purchases; and the importance of financial records and contracts.
- Planning and Managing Finances. This content area covers the knowledge, skills and attitudes related to budgeting; managing income and expenditure; saving; investing; longer term planning; retirement; credit; debt and debt management.
- Risk and Reward. This content area covers the knowledge, skills and attitudes related to the identification of risks; financial safety nets; insurance; and balancing risk and reward.
- Financial Landscape. This content area covers the knowledge, skills and attitudes related to regulation and consumer protection; rights and responsibilities of consumers; the use of financial education, financial information and financial advice; financial products and services; scams and fraud; understanding of tax and public spending; and external influences on financial decisions.
Usage in the Open Risk Manual
- The Open Risk Manual adopts an overall financial competence framework to classify (where applicable) entries according to their relevance to specific financial competences.
- Sustainable Finance Competence List
References
- ↑ “European Union/OECD (2022), Financial competence framework for adults in the European Union
