Patricia Brolly: Does financial education work?
Does financial education work? Write-offs and unemployment in the UK grew sharply following the worsening of the economic situation Information Classification as Needed 2 Presentation Identifier.2 Bankruptcy orders and IVAs have increased every quarter in the UK since Q4 2007 … Information Classification as Needed 3 Presentation Identifier.3 Visa has invested €7 million in financial education globally… Practical Money Skills for Life www.practicalmoneyskills.com Visa’s free financial literacy programme for… • • • • Educators Students (K-12) Parents Consumers What’s My Score www.whatsmyscore.org • Visa’s free resource for young adults and college students – – – – Credit scores Budgeting and saving resources Credit information & help Money guides Information Classification as Needed 4 Presentation Identifier.4 Practical Money Skills for Life Complete Financial Literacy Education Offerings Award-winning program built by teachers, for teachers Full curriculum mapped to state standards Completely free Curriculum includes: • Lesson plans • Presentation materials • In-class activities • Quizzes • Interactive games How you need it, when you need it • Online • Print or download • CD/DVD • English • Spanish • Chinese Information Classification as Needed 5 Presentation Identifier.5 Financial Football rollout began in September 2009 in U.S., Brazil and Mexico … Players advance on the field based on answering multiple choice personal finance questions correctly Players can select easy, medium or hard questions – the harder the question, the better the field position Information Classification as Needed 6 6 Presentation Identifier.6 … and will continue in other key markets through World Cup in June 2010 Robust educational modules included for classroom settings Information Classification as Needed 7 7 Presentation Identifier.7 Financial Education Works Wells Fargo Study • College cardholders were given a brief online tutorial in basic financial literacy • Participants did significantly better than a control group: – Late fee instances down 42.6% – Over-limit charges down 42.6% – Revolving balances 26.5% lower than any other group – Past due events 55.9% less likely Programme Impact • Used in thousands of classrooms nationwide • A million page views per month • Five year goal to reach 20 million people globally by 2013 Information Classification as Needed 8 Presentation Identifier.8 In the UK, we have leveraged these learnings to build Better Money Skills • Launched in September 2008. • Close collaboration with and support from the Citizens Advice Bureau. • 5 star rating from Webuser.co.uk. • Doubled number of unique visitors to the site since launch. • Visitors spending on average 20 minutes on the site, with the most popular pages being the Financial Personality quiz and the Managing your Money and All About Credit sections. Information Classification as Needed 9 Presentation Identifier.9 Banks can use Better Money Skills to raise financial awareness amongst their customers • Launch of Nationwide version of Better Money Skills in 2009. • The Co-operative Bank and AIB are promoting Better Money Skills on their websites. • Visa is looking to launch more sites Europe-wide in 2010, ie. Greece, Romania. Information Classification as Needed 10 Presentation Identifier.10 Better Money Skills is refreshed regularly to reflect consumer spend patterns and behaviour Information Classification as Needed 11 Presentation Identifier.11 Our aim is to educate consumers about Better Money Skills and drive visitors to the site Information Classification as Needed 12 Presentation Identifier.12 Thank you for listening … Information Classification as Needed 13 Presentation Identifier.13