The effectiveness of studying money as a tool is evidenced by the results of countries that today are leading in the field of investments, starting new businesses, and which have high indicators of living standards.
Leading countries
Norway, Denmark, the Netherlands and the UK have some of the highest financial literacy rates in the world. According to the study, on average, about 70% of the population of countries is financially literate. These countries have unique educational funding models and their education spending is among the highest in the world.
Norway
In Norway, individual institutions and organizations are encouraging the education of the younger generation in schools in order to ensure their financial well-being in the future. There are several programs funded by the National Bank of Norway to create interactive learning materials for students on personal finance topics.
The purpose of these programs is to provide young citizens with a solid theoretical and practical foundation of knowledge and skills in spending, investments, loans, retirement and other long-term financial savings.
Netherlands
The Dutch government places a strong emphasis on the financial empowerment of its citizens. They are taking a multitude of legislative actions to make financial consumers more informed, in particular about their own decisions about the money.
One of the laws, which was passed back in 2012, is aimed at combating consumer debt. The government has obliged financial institutions to provide all potential borrowers with a single credit reference book and an interest payment calculator.
Also in educational institutions, there are many educational, sometimes even experimental programs aimed at studying financial literacy from childhood.
Denmark
Things get really interesting in Denmark. Although the country has relatively high consumer debt ratios, many households have large assets at the same time. The state is home to a significant proportion of well-known global investors with insane incomes, and the poverty rate is one of the lowest in the world.
The model of pension savings according to the system of compound interest operates here. Pension plans, where capable citizens set aside 10 to 15 percent of their monthly income, are compulsory, and the interest paid continues to add up even after a person retires.
This initiative of the Danish government was accompanied by a massive information campaign, and although the country's pension reform was difficult, today it confirms its effectiveness.
The UK
This country has accumulated significant experience in the development of financial literacy. There are about 500 national or local programs in the country. The generally recognized leader in the state "Strategy for Financial Literacy", as amended, adopted in 2015. The program has nationwide coverage, with regional nuances for Wales, Scotland and Northern Ireland. The main emphasis in education is on young people.
One of the most popular training programs is Personal Money. Currently, the subject of the same name is being introduced as a compulsory discipline in secondary schools. From the age of 7 to 11, students master personal accounts. Students 11 to 14 years old master information about credit and debit cards, loans, deposits, the basics of household economics. Also popular is the "Money Doctors" program carried out in universities which explains to students how to effectively avoid debt and credit dependence on banks.
For working Britons, a program “Make the Most of Your Money” has been developed, within the framework of which training presentations and seminars are held, printed practical manuals are distributed, allowing them to get the necessary information on personal finance management right at the workplace. An undoubtedly positive role is played by the activities of the Money Council Service, a government organization whose employees provide free consultations to those in need, develop online applications and study guides on financial literacy. As the act of engaging in sex as part of an exchange of sexual services for money is legal In Great Britain (England, Wales and Scotland), they have the best financial literacy program as well.
British fintech startups are also contributing to the development of financial literacy. Thus, the mobile bank Revolut announced plans to create courses for schoolchildren on financial security, and Monzo bank demonstrates similar intentions. Its CEO Tom Blomfield said recently that "once they come to the bank, clients will no longer change it," and this attachment must be nurtured from childhood.
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