Towards a framework for financial literacy in the context of democracy

Abstract

This paper contrasts the prevailing individualistic approach of financial literacy measurement and financial education with an educational framework that seeks to equip young people to play an active democratic role and to develop a broader understanding of the financial world. In particular, the framework suggests how important dimensions of financial literacy may be addressed in terms of the individual, the financial industry and government.

Keywords:

• financial literacy
• citizenship education
• curriculum policy
• economics education

Acknowledgements

I am grateful to participants in a Financial Literacy workshop at the University of Birmingham 9th/10th November for helpful suggestions particularly with regard to the proposed new framework (table 3). I am also grateful to Neil Davies and two anonymous referees for helpful comments on earlier drafts of the paper.

Notes

1. One of our referees suggested that it would be helpful to have an additional column for enterprise. The rationale for restricting the framework to these columns is that the argument in the paper concerns expanding financial literacy for consumers to financial literacy for citizens. Enterprise education addresses preparation of young people for work (Davies & Hughes, 2013).

2. See for example the resources signposted at the US portals at http://www.mymoney.gov/

or http://www.cde.ca.gov/eo/in/fl/finlitk12.asp or sites in Singapore (http://finlit.sg/programmes/making-sense-of-your-money/); Canada (http://www.canadianteachermagazine.com/ctm_life_skills/fall08_financial_literacy_for_youth) and sites of banks (e.g. http://www.moneysense.ulsterbank.ie/schools/students/credit-worthy/understanding-debt or http://www.amalgamatedbank.com/home/personal/moneysense) which might be expected to be somewhat reticent to highlight examples of problematic behaviour within the financial sector.

Additional information

Notes on contributors

Peter Davies

He is an editor of the International Review of Economics Education and author (with Nick Adnett) of Markets for Schooling: an economic analysis and (with Jacek Brandt) of Teaching Business, Economics and Enterprise: Teaching School Subjects 11–19, both published by Routledge.