2013 ─ Europe & Central Asia Regional Meeting Report 2013 by Child & Youth Finance International

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 4-5 November 2013 Frankfurt am Main, Germany

Regional meeting for Europe and Central Asia on financial inclusion and financial education for children and youth Hosted by: European Central Bank - Child and Youth Finance International Monday, 4 and Tuesday 5 November 2013 Frankfurt am Main, Germany UNSGSA quote for event Program 7 October 2013

“One billion children live in poverty today. We need to find pathways away from vulnerability and exclusion, and toward a brighter future for every child, in every country. Equipping young people with the full set of financial tools they will need to save safely, transact conveniently and affordably, invest in opportunities and protect themselves against risk is a first step. Financial services will only help young people maximize personal and business opportunities if they are delivered together with training and education on how to use them. Financial inclusion and financial capability are issues for every country, at all stages of economic development.”

H.M. Queen Máxima of the Netherlands UN Secretary-General’s Special Advocate for Inclusive Finance for Development

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 4-5 November 2013 Frankfurt am Main, Germany

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Executive Summary The Second Annual Regional Meeting for Europe and Central Asia, hosted and organized in collaboration with the th th European Central Bank, was held on November 4 and 5 . Vice-President Constancio commenced the meeting which also featured closing remarks from European Central Bank President, Mario Draghi.

Day 1 – November 4th The Second Annual Regional Meeting for Europe and Central Asia inspired and set the direction for Reshaping the Future of Finance in Europe and Central Asia! The first day of the meeting started with the opening speech of Vice-President Constâncio, who acknowledged the ECB’s role and commitment to ensuring the financial inclusion of European youth.

“The European Central Bank plays a direct role in achieving the objectives of financial inclusion.” - Mr. Constâncio, Vice-President, ECB Mr. Constâncio emphasized the long-term benefits of financial literacy and inclusion for both youth and their communities. He argued that financial literacy and inclusion not only affect the lives of youth themselves but also the financial stability and economic growth of countries and regions. He also addressed the challenges young people face in becoming financially included. He concluded by encouraging participants to listen to the opinions of the 25 youth delegates at the meeting stating, “It is rare for us to hear the opinion of youth, and I think we should listen carefully…Our children have enormous potential, we need to help them fulfill it”. The day continued with outstanding speakers from the region who stressed the importance of the child and youth finance Movement and their support of the Movement’s core objectives. At the Inaugural Session, Dimitar Bogov, the Governor of the National Bank of the Republic of Macedonia, Ardian Fullani the Governor of Bank of Albania, Philippe Cori UNICEF Director for Europe and Central Asia, and Vahdettin Ertaş the Chairman of the Capital Markets Board of Turkey, took the stage with Jeroo Billimoria CYFI Founder and Executive Director. Mr. Koen Vermeltfoort, Partner at McKinsey & Company moderated the second session, ‘Celebrating the Movement’. During the session Mr. Joseph Falzon, Dean of the Faculty of Economics, Management and Accountancy and representing the Ministry of Education from Malta, announced the Maltese Ministry of Education’s commitment to fully support and collaborate with CYFI on implementing financial education. The third session of the day addressed means of creating an integrated approach to youth economic citizenship. Moderated by Chris Sier, Director at Financial Services Knowledge Transfer Network, the session emerged as a dynamic and interactive dialogue where delegates offered their views on financial education, inclusion and the complexity of turning ideas and non-governmental initiatives into policy. For the remainder of the day, delegates participated in Workshops moderated by McKinsey & Company. Throughout the day, the 25 youth representatives participated in 3 thematic working groups: financial inclusion and access, financial education, and entrepreneurship and employability. Within the context of the thematic dialogue they discussed the challenges the region is facing and the means by which these challenges can be overcome. They prepared their presentations for the following day, where they prepared to present their recommendations to regional policy makers. The day ended with a dinner hosted by Ignazio Angeloni, Director General of the European Central Bank. Mr. Angeloni warmly welcomed the guests where he spoke about the ECB’s ambition, through financial education, to fight against unfulfilled youth opportunities and to help them fulfill their dreams.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Day 2 – November 5th The final day of the meeting set the mood for a celebration, as the European Central Bank conference room was filled with heaps of balloons in the colors of the Child and youth finance Movement. The first sessions saw youth present their ideas to policy makers during three parallel sessions addressing financial education, financial inclusion and youth entrepreneurship. The Global Money Week session inspired the audience with presentations from government representatives who outlined the importance of and their support for awareness raising campaigns. The presentation of the Global Money Week Awardee for 2013, National Bank of Macedonia and the youth recommendations highlighted a session which promises an even more exciting Global Money Week for 2014! The session started with an introduction by Mr. Dakic, Governor of the Central Bank of Montenegro. Mr. Dakic shared with the delegates how the Central Bank of Montenegro had celebrated Global Money Week of 2013 with activities of the ministry of education and the central bank such as visits to the money museum and workshops for students. He ended the introduction by stating:

“It is obvious that a lot of work is ahead of us, and there are still some steps to be taken to ensure financial inclusion – Global Money Week is one way of doing this. I strongly believe in its success.” - Mr. Dakic, Governor of the Central Bank of Montenegro The final session began with a presentation of proposals prepared by 25 youth delegates representing 12 countries but delivering the opinions of 100 000 youth from Europe and Central Asia, who provided input for the proposals via social media. The issues presented addressed: Employment and Entrepreneurship, Financial Inclusion and Economic Citizenship Education. The calls for action were clear: Introduce tax reduction for young entrepreneurs and entrepreneurship education in the school curriculum. Every child graduating from primary-school should have the right to have a bank account. All school curricula should include Economic Citizenship Education. In response to these calls for action Mr. Draghi stated that the ECB shares in their objectives calling for: transparency and access to financial services and bank accounts. He elaborated his support of the youth policy priorities, and the goals of the ECB is to ensure a truly European banking sector with a European banking union as a platform to implement youth financial inclusion. Mr. Mario Draghi also remarked on the importance of financial inclusion and education for the health of society and the region. He was then awarded the ‘Financial Inclusion Champion’ in Europe and Central Asia by the youth of the region.

”While education in general is critical for the health and wealth of society, so is financial education. In the modern world, wherever you live, it is essential to have the skills and knowledge to manage your money and to know at least something about how the economy works. If you have that knowledge, you are more likely to have your own bank account and can then make savings or even borrow money and set up a small business. You are connected to the world around you.” - Mr. Mario Draghi, President, European Central Bank

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Contents Program Schedule

About the Regional Meeting for Europe and Central Asia

About the Youth Meeting for Europe and Central Asia

Meeting Highlights

Key Meeting Outcomes

Day 1

Monday, November 4, 2013

Inaugural Speech – Mr. Vitor Constâncio

Inaugural Plenary: The Relevance of Child and Youth Finance in Europe and Central Asia

Insights from the Youth Meeting

Celebrating the Movement

Insights from the Youth Meeting

Financial Inclusion – Economic citizenship education: workshops afternoon

Day 2

Tuesday, November 5, 2013

Young people and policy-makers in dialogue

Session 1: Economic Citizenship Education (ECE)

Session 2: Entrepreneurship and Employment

Session 3: Financial Inclusion

Concluding Session: Reshaping the Future of Finance

Concluding remarks

Next Steps

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Program Schedule An overview of the program agenda can be seen below:

Time

Day 1: Monday, November 4, 2013

Day 2: Tuesday, November 5, 2013

Inaugural Ceremony  Celebrating the Movement  Workshops:  Creating an integrated policy for Europe and Central Asia on Economic Citizenship Education, financial inclusion and entrepreneurship

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Youth and policy makers in dialogue Financial education and financial inclusion: the last mile Global Money Week

Afternoon

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Workshop sessions on inclusion and education for children and youth

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Closing Ceremony

Evening

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Inaugural Dinner

Morning

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The CYFI Secretariat would like to thank the Staff and Management of the European Central Bank for their invaluable support in making this meeting a success. Special thanks go to President Mario Draghi, to Vice President Vítor Constâncio, to Mr. Ignazio Angeloni and his staff, to Mr. Panayotis Strouzas, to Ms. Natalia Mas Guix, to Ms. Fatima Pires, and to all staff who helped with the organization of the meeting. A special thanks is also due to Ms. Jutta Auth, event coordinator.

About the Regional Meeting for Europe and Central Asia Currently 31.9% of youth in Europe aged 15 to 25 hold an account at a formal financial institution. This means that almost 2/3rds of Europe’s youth are excluded from the formal financial system. The ongoing financial crisis has nd highlighted the importance of having an financially educated and included population. The 2 Annual Regional Meeting for Europe and Central Asia provided a much needed space for adult and youth stakeholders from across Europe and Central Asia to come together to ensure that future generations have the opportunity to become financially included economic citizens of their countries. nd

In doing so, the 2 Annual Regional Meeting for Europe and Central Asia set the direction for Reshaping the Future of Finance. The first day of the meeting was opened with an inaugural speech by ECB Vice President Constancio, who acknowledged the ECB’s commitment to ensuring financial inclusion: “The European Central Bank plays a direct role in achieving the objectives of financial inclusion.” - Mr. Constâncio, Vice-President, ECB. The day continued with outstanding speakers from the region. These speakers stressed the importance of the Movement and offered their support for its objectives and values. The final day of the meeting gave delegates a chance to celebrate both shared and individual accomplishments. In addition, youth perspectives on the topics of financial education, financial inclusion and youth entrepreneurship were heard, as well as details on the forthcoming Global Money Week 2014. The day was closed on a forward-looking note, as European Central Bank President Mr. Mario Draghi gave a closing speech on the importance of financial inclusion and education. He was selected for the “Financial Inclusion Champion” award by the youth of Europe and Central Asia.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

About the Youth Meeting for Europe and Central Asia During the 2 days event, 24 youth delegates from 12 European countries engaged in dialogue with policy makers about how best to ensure a financially positive future for Europe’s young people. Youth participation in this event helped focus attention on the national and regional policy objectives in Europe they found most relevant. The main purpose of the Youth Meeting was to allow young people to bring offer input on challenges and potential solutions related to financial education, financial inclusion, and employment and entrepreneurship. The youth representatives were carefully selected by the CYFI Secretariat during a 2-step selection process. In the first step, youth had to prove their engagement with and knowledge of the topics discussed in the meeting, as well as their commitment to engaging their local and national communities in the 1 month period preceding the Regional Meeting (as well as online during the event). During the 2 days of the Regional Meeting, the Youth Meeting became a platform for children, youth, and adults to engage in policy dialogue.

“Children want more power over their own present lives and their future” - Youth Participant

The welcome address was given by the Vice President of the European Central Bank, Mr. Vítor Constâncio, who stressed the importance of “listening carefully” to the opinions of young people. Mr. Contâncio was joined on stage by the governor of the National Bank of the Republic of Macedonia, the governor of the Bank of Albania, the UNICEF Director for Europe and Central Asia, and the chairman of the Capital Markets Board of Turkey, together with CYFI founder and managing director Jeroo Billimoria. The inaugural ceremony marked the beginning of an inspiring two days, for which vice – President Constâncio’s words laid the foundation.

“Our children have enormous potential, we need to help them fulfill it” - Mr. Vitor Constancio, Vice President of the European Central Bank CYFI has entered a strategic partnership with the non-profit My Finance Coach to work towards the improvement of financial literacy for young people, as well as on the organization and implementation of the Youth Summit. The CYFI Secretariat would like to thank My Finance Coach’s staff for their support in the organization of the Youth Meeting, and especially Ms. Rachel Fisher and Ms. Anne Inkpen.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Meeting Highlights 

Continuous support for the Child and Youth Finance Movement from key regional stakeholders, including the European Central Bank  The commitment of the countries present at the meeting to organize national events in their countries for Global Money Week 2014.  Announcement that the Ministry of Education of Malta will be working with the Child Finance Movement to include child and youth finance education in their national educational curriculum.  Announcement that the 2014 Regional meeting will be hosted by the National Bank of Macedonia

Key Meeting Outcomes  

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Creation of awareness and increased momentum for the CYFI Movement in Europe and Central Asia. Documentation of barriers to financial education and inclusion for children and youth in the region, and outlining of the way forward. Formation of alliances between individuals and organizations both within and across sectors to promote financial education and inclusion for children and youth. Drafting of road maps to bring issues of financial education and inclusion for children and youth on the agenda of organizations and states. Sharing of individual, organizational, and state experiences in the development of strategies and programs for financial education and financial inclusion for young people. Presentation of young people’s perspectives on financial education and inclusion in the region.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Day 1 Monday, November 4, 2013 09:00 – 09:15 09:15 – 09:30 11:00 – 12:00 12:00 – 13:00 14:00 – 19:30 Workshop 1.1 Workshop 1.2 Workshop 2.1 Workshop 2.2 Workshop 3.1 Workshop 3.2

Welcome speech Inaugural session Celebrating the movement Creating an integrated policy for youth economic citizenship in Europe and Central Asia Workshops Integrating economic citizenship education into the school curriculum Enhancing financial capability: the value of combining financial education and financial inclusion Financial inclusion policies and regulation for young people: gaps and recommendation in the EU context Teacher training capacity-building Innovative outreach models for economic citizenship education through formal and non-formal education Policies encouraging youth entrepreneurship: how to develop a greater entrepreneurial culture among Young people in Europe

Inaugural Ceremony The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Inaugural Speech – Mr. Vitor Constâncio The meeting started off with a welcome speech by Mr. Vítor Constâncio and throughout the day distinguished delegates gave inspirational speeches on their national initiatives and the importance of the Child and Youth Finance Movement. This year’s meeting became a call for action to reshape the future of finance in Europe and Central Asia. ECB Vice-President Vítor Constâncio who opened the meeting with a welcome speech acknowledged the ECB’s role in ensuring financial inclusion to the European youth, and the ECB commitment to the issue: “The European Central Bank plays a direct role in achieving the objectives of financial inclusion.” Mr. Constâncio emphasized the long-term benefits for both youth and their communities to understand financial literacy and inclusion, as he argued that it will not only affect the lives of youth themselves, but also the financial stability and economic growth. At the same time he also addressed the challenges that are still to be overcome for youth financial inclusion. He also pointed out the opportunity to listen to the opinions of the 25 youth participants to the meeting. “It is rare for us to hear the opinion of youth, and I think we should listen carefully”. He continued saying: “Our children have enormous potential; we need to help them fulfill it as they hold the key to our future prosperity and are the most important agents of change”. Vice – President Constâncio highlighted in his speech the importance and the correlation between monetary policy and central banking and financial education. He stated that ECB believes that a financially educated person is more employable, entrepreneurial and more likely to make savings and investments, because he or she understands the longer-term benefits, all attributes that unquestionably affect financial stability and economic growth, which are of key interest to central banks.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Inaugural Plenary: The Relevance of Child and Youth Finance in Europe and Central Asia This session explored the relevance of the Child and Youth Finance Movement and financial education and financial inclusion for children and youth in the region, as well as paths to further the Movement at the national level.

Chair Ms. Jeroo Billimoria, Managing Director of Child and Youth Finance International (CYFI) Speakers  Dimitar Bogov, Governor, National Bank of the Republic of Macedonia  Philippe Cori, Director Europe and Central Asia, UNICEF  Vahdettin Ertaş, Chairman, Capital Markets Board of Turkey  Ardian Fullani, Governor, Bank of Albania Dr. Vahdettin Ertaş, Chairman of the Capital Markets Board of Turkey and Regional Representative on the Child and Youth Finance International Board, stressed the importance of financial inclusion in Turkey, as well as in Europe and Central Asia as a region. Dr. Ertas presented the initiatives that Turkey is planning to undertake as part of the financial education strategy which will be drafted. He also reaffirmed the support of Turkey, as the next leader of the G20, to make financial education and financial inclusion a priority as part of their mandate. Ms Jeroo Billimoria, Managing Director of Child and Youth Finance International (CYFI), explained why promoting a positive financial culture in young people is an essential step in ensuring a financially capable population, able to make well-informed decisions. She stated that the CYFI Movement was on a mission to reshape the future of finance by freeing youth from debt and poverty. As the first step, the Movement brings together stakeholders from around the world to ensure that 100 million children and youth in 100 countries will have access to the appropriate financial education and financial products by 2015. Mr. Dimitar Bogov, Governor, National Bank of the Republic of Macedonia stressed the commitment of the National Bank of Macedonia, as partner institution to the Child and Youth Finance Movement, to strengthen the structure and policies within the country that will provide children with basic financial literacy, inform them of their rights, instill values in them, and empower them to achieve sound financial futures. Mr. Bogov underlined how financial education and financial inclusion can benefit the all of society by bringing significant positive externalities to the sustainable economic growth. He also discussed how the National Bank, through the newly established Coordinative Body for Financial Education between the Central Bank, Ministry of Finance, Insurance Supervision Agency, Securities Commission, and Pension Funds Supervision Agency, is aiming to build a national strategy for financial education and is actively initiating a number of educational projects in the country. Mr. Ardian Fullani, Governor of the Bank of Albania showed how Bank of Albania has not only embarked in this initiative as part of the Movement for global awareness of financial literacy and the benefits of financial inclusion, but have also adopted it as a central part of their strategy to promote and guaranty the achievement of macroeconomic and price stability. Mr. Fullani stated that education will empower the youth with the relevant skills for both navigating the financial system with confidence and increasing their income and savings, and eventually help them to fulfill their financial goals. In this respect, financial skills and financial literacy are key pillars when developing a prosperous and financially stable society. These pillars constitute the safeguards of financially stable households and a sound private sector, and thus an important line of defense for financial stability. Financial literacy has become the third pillar on which the Bank of Albania supports its mission of achieving macroeconomic and financial stability. The philosophy of the Bank is that financial education must begin at school and continue for the rest of the adult life. “Financial education and financial inclusion,” stated Governor Fullani, “rank high in the Bank of Albania agenda towards a future where most of Albanian children graduate from primary school with a bank account, and from secondary school with enough knowledge and experience to be able to start their own enterprises and earn their own livelihoods.”

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Mr. Philippe Cori, the Director for Europe and Central Asia of UNICEF indicated UNICEF’s commitment to “social cohesion” and the great importance of financial inclusion (connected to social inclusion) in making sure that children and youth grow up to be empowered adults. During his speech, he proclaimed that “we need to invest in our youth today!” as youth are stakeholders of our society. He also stated that children are the drivers of change in our soceities, and the inclusion and empowerment of youth is, and will continue to be, a key priority of both UNICEF and the UN.

Insights from the Youth Meeting Running parallel to the Regional Meeting for Europe and Central Asia was a Youth Meeting, in which 24 youth representatives from 12 of the region’s countries participated. The Youth Meeting became a platform for children, youth, and adults to engage in policy dialogue and make steps towards reshaping the future of finance. During the first day of the Regional Meeting for Europe and Central Asia, youth participated in focus group discussions on financial inclusion, financial education, and entrepreneurship and employment. Sessions were moderated by experts from the field who guided the discussions and assisted the youth in the preparation of the presentations they would deliver in front of the policy makers during the second day of the meeting.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Celebrating the Movement This session featured the latest development and commitments from CYFI partners to the Movement in the Region and steps ahead. Speakers outlined the importance of financial inclusion and economic citizenship education in their countries and the essential role played by the Movement in furthering these objectives.

Chair Koen Vermeltfoort, Partner, McKinsey & Company Speakers  Joseph Falzon, Dean of the Faculty of Economics, Management and Accountancy, University of Malta  Kornél Kisgergely, Deputy State Secretary for Financial Policy Affairs, Ministry for National Economy, Hungary  Marin Molosag, First Deputy Governor, National Bank of Moldova  Eva Zamrazilová, Board Member, Czech National Bank

Mr. Koen Vermeltfoort, representing McKinsey & Company, global strategic partner of CYFI, moderated the session and invited the speakers to look into celebratory moments in the collaboration between their organizations or countries and the Child and Youth Finance Movement. Mr. Vermeltfoort stated that some of the celebratory moments of the Movement could be considered the events of Global Money Week in 2013 (which took place in more than 80 countries), the commitment of the G20 leaders to make part of their agenda financial education and financial inclusion issues for young people, and the fact that, in less than 2 years, the Movement has managed to engage more than 300 partners worldwide. Mr. Marin Molosag, First Deputy Governor, National Bank of Moldova, highlighted the importance of the event and the promotion of financial inclusion and Economic Citizenship Education for children and youth, and especially in today’s more complex world, in which the norm is the shifting of responsibilities from financial institutions to households. National Bank of Moldova supports the promotion of financial education and inclusion, as it can be seen as investment in knowledge and also as a way of backing the efficiency of monetary policy and financial stability, of ensuring the smooth functioning of the financial market, and of supporting sustainable economic policies. The role of central banks in the field of education is understood to be complementary to the task of the educational system by the National Bank of Moldova. Moreover, Mr. Molosag acknowledges the important contribution of the Child and Youth Finance Movement in terms of promoting Economic Citizenship Education for children and youth. He stated that the National Bank of Moldova fully supports the core values of CYFI and intends to advance these principles in their sphere of influence by promoting them to the stakeholders and the general public. In fact, the objective of promoting financial education is included in the medium-term strategy of the national bank of Moldova as the ’’promotion of financial literacy among the youngsters will lay down the pre-requisite for tomorrow’s health economies’’. Ms. Eva Zamrazilová, Board Member, Czech National Bank, pointed to the fact that the financial crisis of 2008 also represented an opportunity, as it has made policy makers worldwide aware of the importance of investing in financial education and of the importance of having a financially educated society. She also acknowledged the progress the Child and Youth Finance Movement has already made in more than hundred countries, having reached more than 18 million children by bringing the efforts of countries and organizations together to work towards the same goals. In fact, a collaborative and holistic approach is necessary for ensuring financial stability and this approach involves financial supervision, consumer protection but also financial education, as only the supervision of financial institutions cannot deliver full protection of the consumer. In Czech Republic, already starting with 2008 in fact, the National Bank Board has regarded financial literacy promotion as an integral part of its work. A collaborative approach was also used in the creation and implementation of the “National Financial Education Strategy”, which involved more than 50 national stakeholders, as well as the Ministry of Finance and the Ministry of Education, Yout,h and Sports. In September 2013, this lead to the introduction of financial education as standard part of the primary education national school curriculum.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Mr. Kornél Kisgergely, Deputy State Secretary for Financial Policy Affairs, Ministry for National Economy, Hungary, said that financial inclusion and financial education is crucial for the government of Hungary. Mr. Kisgergely began with a reflection on the importance of the DSGE macroeconomic models, which can be looked at as models for how economies should be working in an ideal world without limited access to finance and in which households were able to make perfectly rational choices based on their preferences. He therefore applauded the Child and Youth Finance Movement, which has the goal of ensuring access to financial services to as many people as possible and to educating them so as to be able to make the right choices. He then discussed how the Hungarian authorities have, for many years, worked towards ensuring a rising level of literacy among Hungarian population. Starting with this year, basic economic and finance education will be incorporated in the curricula for the primary and secondary levels. Professor Joseph Falzon spoke during the meeting on behalf of the Honorable Mr. Evarist Bartolo, Minister of Education and Employment of the Republic of Malta and proclaimed the commitment of the Ministry of Education of Malta to fully support and collaborate with Child and Youth Finance International on promoting and implementing economic citizenship education in the national school curricula, as well as financial inclusion for all children in Malta. “Educational and social inclusion is a very important objective and one that the Ministry of Education in Malta is constantly trying to achieve,” Mr. Falzon said. He further addressed financial inclusion as a means to make sure that all young people grow up with equal access to the tools to lead happy and successful lives, independent of their background or circumstances: “Inclusion means that we positively help all disadvantaged children and young people to be able to start the marathon of life at the same starting line.”

Insights from the Youth Meeting Children and youth were split into the following three working groups: Economic Citizenship Education Employment/Entrepreneurship ● Financial Inclusion ● ●

The youth spent the morning of Day 1 brainstorming ideas related to the theme of their working group. As a group, they would present their ideas to key stakeholders on how young people could be better served within the financial landscape. In the afternoon, the youngsters took a break from brainstorming to cruise around Frankfurt on a private tram tour before preparing for an afternoon Global Money Week workshop. The final activities of Day 1 came to an end at a dinner, where all participants of the Regional Meeting, both young people and adults, joined together.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Creating an integrated policy for youth economic citizenship in Europe and Central Asia The aim of this session was to identify the status of the research on financial inclusion and Economic Citizenship Education in Europe and Central Asia and the need to elaborate an integrated policy for Europe on financial education, financial inclusion, and entrepreneurship.

Chair Chris Sier, Director, Financial Services Knowledge Transfer Network Speakers  Anatoly G. Gavrilenko, Chairman, Expert Group on Financial Education, Russian Federation  Catherine Fagan, Chair of the International Association for Citizenship, Social and Economics Education, University of Glasgow The third session of the day was on how to create an integrated approach towards youth economic citizenship. Moderated by Chris Sier, Director at Financial Services Knowledge Transfer Network, the session became a dynamic and interactive part of the morning in which many of the delegates gave their views on financial education, financial inclusion, and the complexity of integrating initiatives to policy. The European Union and member states are making efforts to promote social and economic inclusion for young people, as reflected in the creation of regional and national youth policies and action plans for inclusive growth, focusing on young people. The EU 2020 strategy endorsed by the European Commission and the member states, for instance, serves as a strategic framework for governments to strengthen, reinforce, and consolidate efforts to empower young people through meaningful youth participation and equal partnership. Along these lines, the EU 2020 Entrepreneurship Action Plan focuses on youth employment and creating entrepreneurship opportunities for youngsters. The underlying principles of these documents demand an urgent need for states and non-state institutions in Europe to reinforce and consolidate efforts to empower young people in driving Europe’s economic recovery. However, these efforts remain scattered and incorporate only several aspects of full youth economic citizenship. Beyond the ideology of the regional bodies, Europe may pursue an integrated strategy targeting economic citizenship of young people as a whole. Participants in this session discussed benefits, obstacles, and ways to create such an integrated strategy on financial capability of youth, as well as the research conducted in this field. Ms. Catherine Fagan of the University of Glasgow opened the session by stating the importance of gathering and meeting face to face to connect, share, and inspire each other in the effort to promote further initiatives for financial education and financial inclusion. Mr. Anatoly Gavrilenko, Chairman of the Expert Group on Financial Education, Russian Federation spoke about his group’s efforts to reach out to children directly through school visits and by similarly engaging private organizations and companies, even in the most remote areas. Mr. Gavrilenko pointed out how integrated policies cannot be the way ahead when looking into working with homogeneous countries with different social situations, populations, and, in particular level of corruption. He suggested that there is no “one-size-fits-all” solution for tackling financial illiteracy in countries, but, from his point of view, the most efficient way of bringing positive change to local communities is through personal examples and awareness campaigns. As the delegates were able to pose their questions to the others in the room, a question regarding financial literacy as preventative of the next financial crisis came up. This started a long discussion regarding the importance of not considering isolated parts as single solutions to a complex problem, such as the financial crisis. Even though many agreed on the importance of financial literacy in preventing irresponsible financial behavior, it became clear that education alone will not be the answer. Instead it must be an integrated solution that not only make sure that youth grow up to be financially literate, but also have strong values and an understanding of their role in their community.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Financial Inclusion – Economic citizenship education: workshops afternoon The aim of the 2 parallel workshops was to tackle specific questions and issues encountered during the implementation process at the national level, such as the implementations of financial education in the school curricula, teacher training, outreach models, and entrepreneurship education.

1.1. Integrating economic citizenship education into the school curriculum The aim of this session was to discuss challenges and the ways to overcome them when dealing with the introduction of financial education in the school curriculum, based on the experiences of countries which have already successfully conducted implementations at the national level.

Chair Child and Youth Finance International / McKinsey & Company Speakers  Miroslava Salavcová, Head of Department of Pre-School, Basic and Basic Art Education, Ministry of Education, Youth, and Sports, Czech Republic  Michaela Dlouhá, Head of the Financial Literacy Working Group, Ministry of Finance, Czech Republic  Pranvera Kamani, Head of Sector for Curriculum and Textbooks, Ministry of Education, Albania  Besa Prela, Head of Communications, Bank of Albania The experience of introducing financial education in the national curriculum in the Czech Republic was shared and discussed by the representatives of the Ministry of Education, Youth, and Sports, Ms. Miroslava Salavcová, and of the Ministry of Finance, Ms. Michaela Dlouhá. The Czech Republic’s experience with financial education dates from 2005, when the first expert consultation on financial education was held. This led to the creation of an official working group on financial education in the Czech Republic, led by the Ministry of Finance and involving 50 national stakeholders, including the Ministry of Education and the Czech National Bank. The launch of the Czech national strategy for financial education took place in 2007 with the decision to integrate financial education into both the primary and secondary school system as of September 2013. In Albania, the implementation of financial education in schools has been carried out through a collaboration between the Bank of Albania and the Ministry of Education. The Bank of Albania has maintained a long term commitment to improve financial literacy in the country, and particularly among children and youth. The Ministry of Education has worked with the Bank of Albania in the elaboration of financial education materials for use at the secondary school level, as well as for materials which will be shared and used in the new pilot project for financial education at the primary level. In Albania, financial education is taught to approximately 28,000 pupils of secondary education from 28 Albanian towns, and approximately 1000 primary school children are part of the pilot project that started in September 2013.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Some of the challenges and solutions provided during the workshop can be found compiled below:

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

1.2. Enhancing financial capability: the value of combining financial education and financial inclusion The aim of this session was to discuss best practices for continuous youth engagement, such as with activities related to financial education and financial inclusion. Other topics included influences on young people’s money management, the iterative relationship between financial education and financial inclusion, and the role of central banks in regulating private sector initiatives.

Chair Child and Youth Finance International / McKinsey & Company Speakers  Michael Chapman, Senior Policy Expert on Consumer Protection, OECD  Mark Fiander, Strategy and Innovation Director, Money Advice Service, the United Kingdom  Anna Zanghi, Head of Global Innovation and Product Development for Youth, MasterCard The session focused on the particular challenges and opportunities involved in moving beyond financial education or financial inclusion alone, and finding ways to structurally combine financial education and inclusion. After the three interventions, which addressed the topic at the financial product, education service, and global policy levels, the audience was invited to join in a discussion. Ms. Anna Zanghi, Head of Global Innovation and Product Development for Youth in MasterCard More than half of the world is unbanked, and 85% of all retail transactions are still in cash and checks. MasterCard aims to provide solutions that can deliver on all financial service needs, and prepaid cards and accounts can serve to remove barriers to financial inclusion – especially for youth. Ms. Zanghi provided examples of MasterCard prepaid products and innovative solutions, such as:  a mobile wallet card combining mobile payments, mobile banking, and loyalty  a card for safe disbursement of social welfare benefits, with biometric ID  a student card serving as ID and payment card, with access to discounts and job opportunities Finally, Ms. Zanghi indicated that MasterCard is investing in educational initiatives, and seeks to integrate smart educational dimensions into its products to ensure the unlocking of their potential and to build trust and confidence in payments systems. Mr. Mark Fiander, Strategy and Innovation Director of the Money Advice Service (MAS) in the UK. The MAS is an independent, government-initiated advisory service that helps people in the UK manage their money. MAS’s recent research highlights just how early habit formation in children and youth starts, which affects the effectiveness of interventions at a later age. Effective interventions will need to involve parents, as they are young people’s key source of advice. Active savings elements are also key, and may involve a dimension of financial inclusion. Interventions will need to provide clarity as to how much money young people have, as well as what their incomes and expenditures are. The MAS is exploring further work in this space. Mr. Michael Chapman, Senior Policy Expert on Consumer Protection of OECD Michael highlighted how the OECD works to offer policy that supports the financial empowerment of vulnerable groups. Importantly, he emphasized the necessity of linking financial education, financial inclusion, and (regulatory) protection to cover all dimensions of effective empowerment. The OECD’s work with the G20, INFE, and GPFI cut across all these dimensions. Furthermore, all policy dimensions require a multi-stakeholder approach that involves public authorities, the private sector, and civil society, with research focusing on effectiveness and impact as key priorities. The discussion covered a broad range of topics, from which four themes materialized:  Stakeholder involvement: at once the largest challenge and opportunity identified was cross-sector partnership. When combining financial education with financial inclusion, the greatest successes have been shown in projects where entities find unusual partners to bring in expertise, perspectives, and opportunities that might otherwise not

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013



exist. Finding these partners is a key challenge, but the cases of MAS, OECD, MasterCard, and CYFI demonstrated some interesting possibilities. Reaching out to digital audiences: it was commonly agreed that testing and trying digital solutions is key when one considers the young people’s savvy with and proactive uptake of technology. Test and trial is necessary, as well as a thorough understanding of the younger generation’s online behavior. Keeping it fun: “Financial” shouldn’t mean “boring.” The taboo on financial education and inclusion as a fun topic should be overcome. Schools, parents, and financial/social service providers should try to bring it to life by addressing young people’s interests and needs. Measuring success (or a lack thereof): accurate measurement of what works should go hand-in-hand with new innovations. To avoid over-simplified research methods, particular focus should be given to raising standards for research and impact assessment across countries by learning from available research projects and methodologies. Ensure sustainability: The private sector should be involved in supporting coordinated national initiatives on financial education. The MAS case – MAS is financed by a levy on financial institutions – showed how this model might prove to be both successful and well adopted by financial sector private institutions.

Some of the challenges and solutions provided during the workshop can be found compiled below:

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Financial inclusion policies and regulation for young people: gaps and recommendations in the EU context This session reviewed financial inclusion regulation at the European level (and the latest Commission recommendation on financial access), as well as the urgency of ensuring financial inclusion for young people in Europe and Central Asia.

Chair Child and Youth Finance International / McKinsey & Company Speakers  Maciej Berestecki, Policy Officer, European Commission  Sébastien de Brouwer, Executive Director, European Banking Federation  Armenuhi Mkrtchyan, Head of Consumer Protection and Market Conduct Division, Central Bank of Armenia The European Union and its Member States are making efforts to promote economic and social inclusion for young people, as reflected in the creation of regional and national youth policies and action plans for inclusive growth, focusing th on young people. Moreover a legislative proposal for a Payment Accounts Directive (adopted on May 8 , 2013) underlined the necessity for Member States to focus on access to payment accounts, the comparability of fees related to payment accounts, and payment account switching. The recommendation invited Member States to put in place the measures necessary to ensure that payment accounts with basic features are offered to consumers within 6 months of its publication. The discussion focused on the importance and relevance of this recommendation and its impact on the private and public sector of the recommendation. The discussions started with a reflection on the possibility and opportunity of ensuring that every young person, when graduating from primary school, is provided with a savings account, an idea which may be taken as a European Commission priority for the years to come.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Mr. Maciej Berestecki, representing the European Commission, discussed the initiatives that are undertaken by the European Commission to promote financial education, financial inclusion, and consumer protection for the general public in Europe. Throughout his presentation, he referred to 2 main initiatives conducted by the Commission, two of which related financial education and one on financial access and inclusion for European Citizens. 

Proposal for payment account directive that the commission adopted in May 2013 covering 3 areas which are access to payment account, comparability of the fees and payment accounts switch.  Financial education; support and coordinate the activities of the member states – awareness raising campaign and the consumer classroom. Regarding financial education, in May 2013 a new recommendation was adopted that covered 3 areas: access to payment account, comparability of the fees and payment accounts switch. The proposed recommendation is in discussion by the Council and the European Parliament. The basic idea of the recommendation is to provide access to bank accounts for every consumer in the EU, based on a general principle of non-discrimination in relation to both residence and nationality. This initiative is a minimum harmonization policy model. Consumers, on the other side, will have to comply with a series of rules in order to have access to these bank accounts. Regarding financial education, Mr. Berestecki talked about the consumer credit directive adopted in 2008 and its impact analysis, which showed that consumers are often not aware or do not make use of their rights. A pilot campaign was therefore launched by the Commission to target young people between 18- and 35-years-old, who represent a group particularly vulnerable to over-indebtedness. Mr. Sébastien de Brouwer, Executive Director, European Banking Federation reported on the position of the banking sector regarding inclusion and regulation, and in particular the correlation between financial regulation and financial inclusion. Mr. de Brouwer pointed to the fact that infrastructure (or rather lack of infrastructures), lack of financial literacy, non-mandatory payment of social benefits to bank accounts, and many other similar can be reasons for a high level of unbanked population in some countries. In all, these may primarily be reasons connected to the demand side of financial services, and not necessarily the unwillingness of the banking sector to serve this part of the population. In addition, Mr. de Brouwer acknowledged the importance of proposals such as the one presented by the European Commission on access to basic bank accounts. This is a proposal which is also widely supported by the banking industry in Europe. Mr. de Brouwer suggested that the best way to tackle financial inclusion is at the national level, and that there is no one-size-fits-all solution. In his opinion, the most appropriate role that the European Commission could take would be in defining and setting general principles for application, translation, and implementation to the specific circumstances in every country. On a related note, Ms. Armenuhi Mkrtchyan, Head of Consumer Protection and Market Conduct Division, from the Central Bank of Armenia stated that, although the Armenian regulatory framework is highly child-friendly (youth between 14 and 18 are legally able to open and fully responsible for operating the bank account), there are very few examples of banks actually offering these kind of products. Data is also scarce on the outreach of existing products. Therefore, for Armenia, financial inclusion remains an issue, as even though 66% of the population has savings, only 6% keep those savings in a formal account and only 17% of the population has a bank account, yet everyone has the ability to acquire a free bank account. From a survey conducted by the World Bank in Armenia in collaboration with the Central Bank, results indicated that the main reason for low inclusion is low levels of trust towards financial institutions combined with a low financial literacy level. Therefore, in 2007, a separate unit responsible for consumer protection and financial education was created under the financial stability department. Its results have clearly shown that adults are much more resilient to change than children and youth, and therefore from a policy perspective it is highly costly for governments to invest in financial education programs for adults. Moreover, to change behavior, financial education must be continuous and long-term. Therefore the Central Bank of Armenia has strategically decided to focus on children and youth as target group for tackling financial illiteracy and developing positive behavioral change.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Some of the main outcomes of the discussion on challenges and opportunities for implementing child-friendly banking accounts and regulation can be found summarized below:

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Teacher training capacity-building This session reviewed initiatives in Europe and Central Asia related to building the capacity of teacher and trainers to address aspects of ECE (financial, social, or livelihoods education) in both formal and non-formal education environments.

Chair Child and Youth Finance International / McKinsey & Company Speakers  Angela Cara, Coordinator, National Institute for Educational Sciences, Moldova  Vanessa Nowak, Teacher Training Expert, My Finance Coach The session focused on the challenges and opportunities of building teacher capacity to address Economic Citizenship Education (financial, social and livelihoods) in the classroom. Ms. Vanessa Nowak, a Teacher Training Expert for My Finance Coach in Germany, described the strategies used by My Finance Coach to deliver and engage teachers in financial education trainings. My Finance Coach offers teacher training in two different formats: face-to-face training sessions and live online webinars/“E-Sessions“. The trainings are conducted together with public partners such as federal training academies, education ministries, or other accredited bodies (e.g., textbook publishers). The unique feature of these trainings is that they involve experts from the private sector in the instructional process. Though much positive feedback is received during the trainings, there are challenges that MFC is trying to solve. These challenges have to do with the limited time and capacity teachers have in participating in the trainings, the fact that financial literacy is often not anchored in formal school curriculum, and the lack of political willingness to make financial literacy training a priority at the local level. Ms. Angela Cara, from the National Institute for Educational Sciences of Moldova shared her country’s experience in promoting teacher training for financial and social education. Starting in September 2012, the Republic of Moldova has introduced financial and social education as optional subjects at the secondary school level. The resulting curriculum and teacher’s guide were approved by the Ministry of Education in the same year. Moreover, Financial and Social Education was introduced as a course for the Master Degree in Education at the Institute of Educational Sciences. Today, continuous professional training in the Republic of Moldova is integrated into the essence of permanent education, thus reconsidering the relationship between pre-service and in-service training. Ms. Cara identified the priorities for the educational system for Moldova for the years to come, which follow the Aflatoun methodology and can be summarized below: 

Requalification, reconversion of teachers in financial and social education determined by restructuring of the educational system.  Design of the Curriculum for in-service teacher training in financial and social education.  Design of the Curriculum for pre-service teacher training in financial and social education.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

During discussion following the presentations, panelists and attendee discussed challenges and opportunities when training the trainers. A summary can be find below:

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Innovative outreach models for economic citizenship education through formal and nonformal education The aim of this session was to identify the status of research on Economic Citizenship Education and financial inclusion in Europe and Central Asia and the need to elaborate an integrated European policy.

Chair Child and Youth Finance International / McKinsey & Company Speakers  Mustafa Özer, Financial Education Program Manager, Youth for Habitat, Turkey  Ligia Golosoiu, Counsellor, National Bank of Romania  Iina Lario, Communications Officer, Bank of Finland  Pierre Arlaud, World Association of Scouts The session served to showcase alternative and non-formal channels for the delivery of ECE. It examined opportunities connected with E-learning platforms and other technological innovations used to further advance ECE for children and youth. During the presentations, speakers identified practices that deliver ECE content in a scalable and sustainable manner and suggested models for leveraging innovation and increasing strategic outreach. In Turkey, no specific youth policy has been approved by the government. Therefore, Youth for Habitat is engaging youth through their network so that voices can be represented in the national decision making process. Mr. Mustafa Ozer from Youth for Habitat talked in particular about the project I Can Manage My Money: a financial literacy project which involves youth through non-formal education. He discussed the efficacy and the impact that the program has on youth, and the level of engagement they show during the program. As an alternative strategy to reach out to children and youth, the project focuses on peer-to-peer education and engaging youth through online platforms and social media. On another note, representing the National Bank of Romania Ms. Ligia Golosoiu who has worked on financial education for primary school since 2011, has explained the role of the National Bank in promoting the concepts of financial literacy; first through non-formal education, and most recently through the formal education system. Their project can be summarized in 3 stages: 1. The setting of the legal framework for the project through the memorandum signed between the National Bank of Romania and the Ministry of Education 2. The creation of a working group expanding the national curriculum to include financial education as an optional discipline 3. The creation and the elaboration of relevant educational materials for the schools Ms. Golosoiu pointed out how the funding of the project is fundamental to determining its degree of success. However, she noted that free distribution of the books and manuals was essential for incentivizing young people and their parents to choose the financial education program in the first place. In promoting financial education as an optional course, Ms. Golosoiu emphasized the use of different materials for reaching out to children and youth. Some of the non-formal examples of activities were visits to the national bank, to commercial banks, to the state mint, and class lessons which involve representatives of the national bank. The teachers were eager to have a mixture of formal and non-formal elements, stressing the importance of combining the two elements in the learning process. The Central Bank of Finland, represented by Ms. Iina Lario, has also developed strategies for reaching out to children and youth with financial education programs through non –formal education strategies. One of the most important projects of the Bank of Finland is Eurocampus, which targets youth between 15 to 19 years old with outreach primarily through an online platform. This platform provides direct access to a number of materials, both to young people and teachers. Moreover, the Bank of Finland has developed online games, offers the opportunity for students to visit the Money Museum, and has designed specific trainings for teachers on these subjects. Another original idea that the Bank has implemented is the promotion of youth involvement with economic and financial topics. This has been accomplished

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

through the creation of a blog which is managed by teenagers (17- and 18-year-olds) and allows young people to connect on the topic while speaking their own language. A separate outreach model was also presented by Mr. Pierre Arlaud, representing the World Association of Scouts. With nearly 40 million members across the world, the Scouts specialize in delivering non-formal education. While the Scout mechanism can be adapted to fit a wide range of cultures and demographics, local members have the liberty to adopt the outreach strategies and delivery mechanisms that work best for the youth in their programs. Educational materials developed by the Scouts are the result of a consultative processes that involves many experts from international institutions. Some of the challenges discussed and the solutions identified by the panelists can be found summarized below:

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

3.2. Policies encouraging youth entrepreneurship: how to develop a greater entrepreneurial culture among young people in Europe The aim of this session was to analyze how the entrepreneurial spirit in Europe and Central Asia can be reignited for children and youth across the region and the initiatives the European Institutions are leading in this sense.

Chair Child and Youth Finance International / McKinsey & Company Speakers  Darja Saar, CEO, Entrum Foundation, CENTRES, Estonia  Ana Rodrigues, Programs Manager for Europe, Aflatoun The EU 2020 Entrepreneurship Action Plan of the European Commission focuses on youth employment and creating entrepreneurship opportunities for youngsters. The session discussed the EU strategy for promoting entrepreneurship and employment in Europe, as well as the implementations steps Member States will need to follow. In addition, it also reviewed best practices and strategies in promoting youth entrepreneurship. Ms. Darja Saar, representing Entrum Foundation, CENTRES of Estonia, talked about Estonian experience in promoting a more entrepreneurial spirit among young people. Ms. Saar pointed out that the most difficult change to catalyze is change in general mentality: entrepreneurship can no longer be seen as just earning money and making profits, as it also contributes to the economy and social life of society. She spoke about how CENTRES and the Entrum Foundation are trying to achieve the following goals: inspire, teach practical skills, integrate with an entrepreneurs’ network, and create entrepreneurial lifestyles and mentality for youngsters. Ms. Ana Rodrigues, Programs Manager for Europe at Aflatoun, discussed how Aflatoun aims at inspiring children to economically and socially empower themselves to be agents of change in their own lives and for a more equitable world. As a result, the Aflatoun concept is based on 5 core components. Namely, these components are: 1. Personal understanding and exploration; 2. Rights and responsibilities; 3. Saving and spending; 4. Planning and budgeting; and 5. Child enterprise (social and financial). For Aflatoun, enterprises are a way to practice skills and abilities that will help youth develop self-confidence, good judgment, the ability to think critically and act on their own, leadership, teamwork, a sense of responsibility towards the environment and resources, and wise resource usage. Ms. Rodriguez finished her presentation with suggestions for policymakers who are interested in re-igniting Europe’s entrepreneurial spirit. These suggestions included: the nationalization of Enterprise Education; encouraging seed funds that could support learning experiences for enterprise; child- friendly policies and regulations for easier access to financial information; encouraging platforms for young people to learn about each other’s enterprises; and providing awards and incentives to reinforce young entrepreneurship. Summarized below are the challenges and opportunities related to this discussion topic.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Dinner

Mr. Angeloni Speech: During the Inaugural Dinner, hosted by Mr. Ignazio Angeloni at the Intercontinental, participants had an opportunity to connect and exchange experiences in an informal setting. Mr. Angeloni addressed the invitees with a speech which focused on the importance of ensuring employability and financial inclusion for the youth in the region. Mr. Angeloni stated that, even though indirectly, i.e. through ensuring price stability and supporting financial stability, through contributing to payment infrastructures, financial education and financial integration; and through taking part in international activities relating to financial inclusion, the ECB plays an important role in supporting financial education and inclusion in Europe. ‘’Child & Youth Finance International is making a direct contribution to social cohesion’’, stated Mr. Angeloni, and the ECB is ready to do this indirectly, mainly by preventing any recurrence of financial turmoil that has concerned the European economies since 2010 and by helping to make the banking system safer and more trustworthy .

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Day 2 Tuesday, November 5, 2013 09:30 – 11:00 11:00 – 12:00 12:00 – 12:15 12:15 – 13:15 14:30 – 15:00

Young people and policy-makers in dialogue Financial inclusion and education: the last mile Global Money Week – introductory remarks Global Money Week Closing ceremony

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Young people and policy-makers in dialogue The second day of the meeting kicked off with 3 parallel sessions in which youth delegates from Europe and Central Asia shared their ideas on Economic Citizenship Education, financial inclusion, and entrepreneurship with policymakers.

During the second day of the Regional Meeting for Europe and Central Asia, breakout sessions were held for young people offer their comments about challenges and possible solutions related to Economic Citizenship Education, financial inclusion, and entrepreneurship. The second day of the meeting allowed children and youth to voice their opinions to stakeholders and policymakers, including President Mario Draghi of the European Central Bank. Three main themes were highlighted during these breakout sessions.

Session 1: Economic Citizenship Education (ECE) The youth participants of this session came from Germany, Kyrgyzstan, the Netherlands, Romania, Spain, and the United Kingdom. The group began by defining some of the various components of Economic Citizenship Education, including consumer rights and responsibilities, financial advice, and social inclusion. In order to examine these sectors of ECE more closely, the group used the PISA Framework (Program for International Student Assessment from the Organization for Economic Co-operation and Development). The PISA Framework looks specifically at Money and Transactions, Financial Landscapes, Planning and Management of Money, and Risk and Reward. Through the duration of the session, the youth participants came to the overall conclusion that: 1. 2. 3. 4.

ECE is not prevalent within their various academic systems If ECE is included within curricula, the main focus in on financial landscapes The participants are most eager to learn more about Risk and Reward The youth participants turn primarily to teachers with their financial questions

In addition to these conclusions, the youth acknowledged the various challenges they face in relation to Economic Citizenship Education and addressed their proposed solutions: 

Integrating not just financial but also social education into school curriculums Integrating ECE in national constitutions  Trusted/certified online sources for financial knowledge and awareness  Appropriate regulation for financial products targeted to youth (e.g., contracts adapted for youth) 

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Session 2: Entrepreneurship and Employment The youth participants noted that there is currently little access to information about entrepreneurship, including how to become an entrepreneur. There is also insufficient access to start-up funds. One possible solution for this is to engage in more crowd funding to raise funds for young entrepreneurs and their endeavors. Another call for action from the youth was for the entrepreneurship education to be integrating with school curricula. This subject should focus on developing entrepreneurial skills and connect traditional subjects like math to the needs of entrepreneurs. Proposed solutions to some of the identified challenges:  

Internships available for high school students Special grants and tax breaks for young entrepreneurs

Session 3: Financial Inclusion The third topic of financial inclusion, which youth named “Reshaping for inclusion”, focused on how to make youth more financially included and what might be necessary in order to make this happen. The session’s young participants stated that increasing financial inclusion for children is essential for them to become empowered. One youth asked that, since young people are able to spend at a certain age, why are they not also supported in saving at that same age? Youth recommendations on financial inclusion:  

Bank account for all primary school graduates Comparative platform to assess child friendly financial services

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Financial inclusion and education: the last mile The session focused on exploring the causes of youth financial exclusion in Europe and the opportunities related to more active involvement of the private sector in projects regarding financial education and financial inclusion.

Chair Panagiotis Strouzas, Head of Division, European Central Bank Speakers  Tracey Bleakley, CEO, Pfeg, United Kingdom  Hidde van der Veer, Executive Director, Aflatoun, the Netherlands  Bram Stoffele, Partnership manager, Child and Youth Finance International  Bogdan Baciu, UN Youth Delegate of Romania  Kirill Akhmetov, youth representative This session looked closer at a key challenge: bringing together the domains of child and youth financial education and financial inclusion, which too often remain separated. In this combined presentation, a view was offered of the state of child and youth financial inclusion in Europe and Central Asia, with the argument that it is not quite as far along as one might think. Bram Stoffele, Partnership Manager at CYFI, started the session by highlighting how levels of financial access range from high and almost complete (Western Europe) to medium and low (Eastern Europe & Central Asia). However, financial access does not equal financial inclusion. Many accounts remain inactive, are often not combined with (substantive) financial education, and delivery channels that optimally reach the segment (e.g., mobile) are underutilized. Financial institutions may thus miss out on great opportunities. In “Beyond the Promotional Piggybank: Towards Children as Stakeholders”, CYFI and UNICEF have argued that investing in full inclusion for children and youth is not just good CSR, but a medium to long-term business investment that leads to more active and empowered economic citizens – and customers. Kirill and Bogdan continued to present on research done by youth on the child-friendliness of child and youth banking products throughout the region. The research was composed of both a survey for banks and secondary research, and covered 30 countries and 79 banks. Of the 8 child friendliness principles assessed, most banking products only achieved 2-4, and the highest number of principles achieved was 6. Strong points were availability and accessibility of accounts, but notably poor scores occurred on outreach to unbanked children and child and youth-centric communication. Furthermore, despite some excellent examples, most financial education programs provided by financial institutions focus mostly on financial elements only, with little relationship to life-skills or livelihoods. Ms. Tracey Bleakley, from Pfeg, shared Pfeg’s successes in integrating financial education with school curricula. Pfeg has been able to gain trust from the general public as an intermediary between banks and schools, certifying bank volunteer trainers as class instructors for financial education. Pfeg has combined a wide multi-stakeholder approach that integrates the public, private, and social sectors with an intense and large-scale media campaign, gaining one of the largest MP coalitions ever seen for an initiative. A collaborative approach is essential to ensuring effective results and coordinated efforts. Moreover, Pfeg is now planning to integrate financial education with financial inclusion components, thereby developing further collaboration with UK’s private financial sector. Mr. Hidde van der Veer, Executive Director, Aflatoun, the Netherlands, shared the experience of Aflatoun when it comes to child social and financial education as a long-term investment in children. Mr. Van der Veer pointed to a randomized controlled research project done by Innovations for Poverty Action (IPA) and an Aflatoun partner in Ghana. This project showed that interventions with a habit formation component are most effective, and access to formal financial services can be powerful part of such habit formation. Further discussion focused on how financial regulation may currently not necessarily strike the right balance between child protection and participation, as economic agency of children and youth is already a reality and often a necessity. It was suggested that this debate should continue so as to facilitate balanced and wide-spread integration of financial education and financial inclusion.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Global Money Week 2014 Celebrations Introductory remarks on the Global Money Week celebrations were given by Governor Milojica Dakid from the Central Bank of Montenegro.

Governor Dakic addressed the audience with a speech on Global Money Week. Mr. Dakic stated that the Central Bank of Montenegro is highly committed to expanding economic and financial education regarding the possibilities offered by Montenegro’s banking sector. Particular attention is given to education through a set of activities implemented by the Central Bank of Montenegro in cooperation with schools, universities, and the private sector. In cooperation with the Ministry of Education, the CBCG participated in celebrating Global Money Week 2013, and is planning to do so again in 2014. Last year’s celebration included a set of educational activities, lectures, and workshops for pupils of primary and secondary schools, and visits to the Money Museum. The CBCG advocates that target groups learn more about money and its history in Montenegro, savings, recognizing counterfeits, and the role of central banks. Governor Dakic acknowledged that efforts must continue, but that these kinds of initiatives represent a significant accomplishment already. “Financial inclusion improves the degree of independence, safety and money management. Better financial security and ability to manage own funds allow people to create economic opportunities for themselves, their families and the community,” he stated.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Global Money Week Global Money Week is a global celebration coordinated by the Child and Youth Finance International Secretariat that has the overall goal of promoting awareness of financial education and financial inclusion among children and youth. This session focused on presenting ideas for engaging stakeholders in the 2014 celebrations.

Chair Robin Willing, Communications Director, Child and Youth Finance International Speakers  Kristina Nikolovska, National Coordinator Global Money Week 2013, National Bank of the Republic of Macedonia  Luís Vaz, Head of Financial Literacy Unit, Bank of Portugal  Philippe Racine, Founder and CSO, Ekomini Inc.  Youth representatives Global Money Week is a celebration that raises awareness of Economic Citizenship Education, financial inclusion, and entrepreneurship. Global Money Week is a multi-sector event that involves stakeholders ranging from national authorities to financial institutions, stock exchanges, schools, children and youth, parents, and teachers, and youth group organizers. Mr. Luís Vaz, Head of Financial Literacy Unit of the Bank of Portugal, started the discussions by speaking about the rationale behind awareness raising campaigns, thereby placing Global Money Week in perspective. From the viewpoint of central banks, the importance of promoting financial literacy is related both to macro and micro dimensions, as financial literacy is a weapon for balancing the relationship between financial institutions and customers. Central banks establish regulation not only on the supply side, but also on the demand side, as it is important to promote financial literacy and thereby help enchance consumer protection. On a macro level, financially capable bank customers are able to make rational decisions and judge risk accurately. Portugal’s central bank promotes financial literacy through a national plan for financial education that was launched in 2011 in partnership with two other financial supervisory bodies. This national plan is an initiative of a wide range of organizations, including consumer associations, industry associations, NGOs, etc. (for a total of 28 entities). To enhance this initiative, steps have been taken by the national authorities in Portugal, the first of which was the strategic partnership established between the Ministry of Education and the financial regulatory authorities. Today, however, financial literacy is still not a mandatory course in the school curricula; and therefore the Bank of Portugal is creating different incentives for schools so as to motivate them to adopt financial literacy in their curricula. These initiatives include an annual contest by the Bank of Portugal, which incentivizes schools to have projects on financial literacy. Another important initiative is related to awareness campaigns such as the Global Money Week. The approach which proved to stand out as highly effective in reaching children and youth with a long lasting impact is bringing financial education to schools, such as through site visits by the representatives of the Bank of Portugal. To ensure a long-lasting impact on the students, the Bank of Portugal has created projects which allow students to express financial matters in their own terms – mainly through non-formal ways of communication (such as role play or theater). These efforts help to engage students more deeply. Mr. Vaz also highlighted the importance of turning these events into national events – for example, through media interest and the use of live broadcasting in schools in different towns of the country. Mr. Philippe Racine, Founder and CSO of Ekomini Inc., talked about his project Ekomini, and explored how technology can be used to broader the reach of Global Money Week. He identified 3 major players in promoting financial literacy in a country: financial institutions (which need a clear idea of return on investment to bring them to financial education programs), parents (who are sometimes not money-savvy and may need tools to help them effectively engage with young people), and schools. The challenge Ekomini is trying to address is how to create an ecosystem built around families that will engage them in a continuous financial education project in a way relevant to their daily life activities. Ms. Kristina Nikolovska, from the National Bank of the Republic of Macedonia, shared experiences with organizing Global Money Week activities in 2013, which was a successful event at both the national level and regional level and led Macedonia to win Global Money Week’s award for the European region in 2013.

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

The National Bank of Macedonia, together with a newly formed committee of Macedonian regulatory bodies, has already started preparations for Global Money Week 2014. The aim is to have national events alongside national outreach. Ms. Nikolovska stated that creativity is important when working with children, both in approaching and also in keeping their attention. Regarding the impact of Global Money Week, evidence collected by the National Bank showed that these activities actually raised the level of financial literacy among young people. Like Ms. Vaz, Ms. Nikolovska underlined the role of engaging with media during the campaigns, as media coverage is very important ensuring access and outreach throughout the country – and especially in combination with technology. Youth delegates reported on their brainstorming sessions, held both at the meeting and also in social media forums. These social media events gathered input from approximately 100,000 young people from the region. Some of the ideas that they would hope to see put into practice during Global Money Week are:          

TEDx talks in universities Active involvement of schools in extra-curricular activities (like Funny Money) Encourage entrepreneurship with career days in schools, entrepreneurship challenges, and meetings with real investors Involvement of parents in activities Online portals for different themes and courses Social media engagement and innovation with Facebook frames Encourage youth to make apps to engage with the program of the Global Money Week Google Doodle for Global Money Week Crowd-funding for events as part of Global Money Week Flash mobs for Global Money Week

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Concluding Session: Reshaping the Future of Finance The concluding session, which featured closing remarks by President Draghi, reflected interaction between policy makers and youth representatives. Carlos, Eric, Eliza, and Yulia represented not only the 25 youth from 12 countries who were present during the meeting in Frankfurt, but also the voices of 100,000 youth from across the region who had been consulted through social media channels on the discussion topics of the Regional Meeting. Their presentation, in which they conveyed youth recommendations to the European Central Bank and regional policymakers, focused on four major thematic areas: financial access, economic citizenship education, entrepreneurship and employment. Summarized below are these youth recommendations:

Employment & Entrepreneurship

Financial Inclusion

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A. Every child graduating from primary school (age 12) should have the right to have a bank account, and the features should increase according to the age of the child B. It should be mandatory for all banks to offer a child friendly account to children. This bank account should have the following characteristics:

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More internship opportunities for students starting from high school Career education should start at the high school level Entrepreneurship education should be included in curricula Start-up and scale-up funds for young entrepreneurs No taxes for young entrepreneurs Crowd sourcing for young entrepreneurs Less bureaucracy to start a business The ECB should lead coordinated activities to increase youth employment and entrepreneurships

Economic Citizenship Education 

ECE should be included in curricula  The financial and social literacy of young people should be assessed  Financial education should not just be PR by banks – maybe banks need to be subject to a financial education tax, so to avoid being superficial!  CYFI and the ECB should support a platform for children and youth that increases their knowledge of money

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There should be no fees The language in the contract should be child friendly and based on globally agreed standards  The contract should be a maximum of one page to ensure that it is easily read and understood  No overdrafts allowed  No transfer fees in the EU 

C. All children should be given an awareness quiz / test before the opening of the bank account to ensure full understanding of services D. The European Union should have a platform to help children and young people compare and contrast bank account features so as to allow them to find financial products best tailored to their needs E. Banks should use technology and ensure easy access. Also, banks should have outreach at schools and alternative channels of distribution, such as libraries, sports clubs, etc.

Global Money Week 

ECB should join the Global Money Week celebrations

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Concluding remarks nd

Mr. Mario Draghi, the President of the European Central Bank, concluded the 2 Regional Meeting for Europe and Central Asia by addressing the young representatives as ‘dear friends’. Mr. Draghi stated that ‘[our] goal should be simple: to boost the young generation’s self-confidence, and give them a sense of community as well as the skills they need to lead a fulfilling life that offers opportunities and rewards’. Mr. Draghi’s full remarks can be found transcribed below: *** “Education empowers people with the knowledge, skills and values they need to build a better world.” Those are the words of Ban Ki-moon, the Secretary-General of the United Nations, and I couldn’t agree more. While education in general is critical for the health and wealth of society, so is financial education. In the modern world, wherever you live, it is essential to have the skills and knowledge to manage your money and to know at least something about how the economy works. If you have that knowledge, you are more likely to have your own bank account, and can then make savings or even borrow money and set up a small business. You are connected to the world around you. That connection can vary greatly depending on where you live. If you draw a line on the map moving eastwards from Germany right across to Central Asia, the percentage of 15-24 year olds with a bank account steadily drops from country to country, from 96% to 26%, and the disadvantages for those young people become ever greater. In the Euro area, in recent years, the economies – and with them, the people – have suffered from the financial and debt crisis from which we are gradually recovering. Still, today credit provision to the real economy and trust in the financial system remain important issues. While the overall economic situation has slightly improved since the middle of last year, interest rates on loans continue to vary widely according to where the borrower is located – regardless of his or her creditworthiness. This has meant that, in some countries, borrowers have very limited access to credit. The hardest hit have been business people running small and medium sized enterprises and households. In the Euro area these enterprises account for 75% of all jobs. We are convinced that the envisaged banking union for the Euro area, if properly implemented, will improve the situation. It aims to achieve a truly European banking sector. That includes a genuinely single financial market. That means, if a Portuguese entrepreneur faces difficulties obtaining a loan at reasonable rates in Portugal, he or she can, for instance, seek a loan from a bank in Finland. This weekend, the regulation on the ‘Single Supervisory Mechanism’ entered into force. It gives the ECB the task of overseeing major parts of the European banking system. I am confident that the work we are conducting prior to starting our new role as supervisor, especially the comprehensive assessment of the banks that will be subject to the ECB’s supervision, will help to revive trust in Europe’s banking sector. Transparency about banks’ balance sheets can play an important role in confidence building and also help boost credit provision. In the context of financial education, I would like to highlight the importance of entrepreneurship. Our economies face a number of economic challenges that can only be met if we have educated and enterprising young people who are determined and curious enough to think in new ways, and who have the courage and willpower to tackle those challenges. We live in a very ‘young’ world – almost half its population is under 25. So it makes a great deal of sense to invest in young people. Our goal should be simple: to boost the young generation’s self-confidence, give them a sense of community as well as the skills they need to lead a fulfilling life that offers opportunities and rewards. It is my sincere hope that your conference and similar events will have an impact on children and young people and help to raise awareness of these vital issues.”

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Next Steps  Address the need for financial education and financial inclusion for children and 

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youth at the national and regional level. Develop effective National Consultative Processes (NRCs) for the CYFI Movement and cooperation between government institutions, local stakeholders, regional bodies and the CYFI Secretariat. Engage in research initiatives and networking in an effort to compile, collate and disseminate Europe-specific information on financial education and financial inclusion for children and youth. Promote resources and institutional capacity building. Promote the development and implementation of national strategies on financial inclusion and financial education. Involve more actively the private sector and financial institutions in the outreach strategy for financial inclusion for children and youth, in coordination with the panEuropean regulation for the banking sector promoted by the European Central Bank and the European Commission. Encourage mainstreaming financial education in national educational curriculum at basic, primary and secondary school levels. Continuously involve youth across the regional in a consultative process for reshaping the future of finance in the Region. Coordinate Global Money Week Celebrations at a European level with the involvement with the Regional European bodies (European Central Bank, European Commission, European Parliament).

The Second Child and Youth Finance Regional Meeting for Europe and Central Asia 2013

Child and Youth Finance International PO Box 16524 1001 RA Amsterdam Netherlands + 31(0)20 5203900

Child and Youth Finance International (CYFI) lead the world’s most extensive child and youth finance Network, that together makes up the Child and Youth Finance Movement. We connect Ministries and Governments, CEOs, heads of NGOs, financial institutions and children. By aligning and coordinating efforts of organizations all over the world the Movement is able to share resources, model best practices and empower each other to reach the target of the Movement: Reaching 100 million children in 100 countries by 2015 with financial inclusion and financial education to make sure that every child and youth have access to a basic savings account and the financial knowledge and skills needed to operate this account. By doing this we aim to give the adults of tomorrow the tools to lead lives free from poverty and financial instability. Stay connected with us Website: www.childfinanceinternational.org Facebook: ChildFinance Twitter: ChildFinance LinkedIn: Child and Youth Finance International To read our publications, please visit: www.childfinanceinternational.org/movement/publications

Global Money Week

Global Money Week is a global celebration that is taking place in the second week of March each year. The Week engages children and youth worldwide in learning how money works, including saving, creating livelihoods, gaining employment, and entrepreneurship. Countries and organizations all over the world participate by engaging children and youth in activities such as global web chats, visits to banks, ringing the bells at the stock exchange, radio shows and cartoons and much more. Stay connected with us Website: www.globalmoneyweek.org Facebook: Global Money Week Twitter: GlobalMoneyWeek

Finance & Me

Finance & Me is a platform initiated by Child and Youth Finance for children and youth to take action in reshaping the future of finance. It allows for youngsters to stay informed about the latest Child and Youth Finance Movement activities going on around the globe so they can remain active and involved in the Movement. Finance & Me also serves as a bridge between young people and adults as children and youth are encouraged to utilize this platform to share their experiences and voice their opinions. Stay connected with us Website: www.financeandme.org Facebook: Finance & Me Twitter: FinanceandMe

YouthTech

YouthTech is a blog where Child and Youth Finance International (CYFI) shares technological innovations around the topic of financial inclusion and education for children and youth. It provides a platform where experts within the CYFI network and beyond engage in discussions about the potentials of technology in enhancing financial capability of children and youth. Moreover, YouthTech also serves to share best practices and to document how technology is shaping the Child and Youth Finance Movement. We hope this will contribute to the understanding of what is needed for technology to make a difference in the current financial inclusion and education landscape and the ways of turning it into a reality. Stay connected on the blog: www.youthtech.info