EUROPEAN FINANCIAL EDUCATION PARTNERSHIP (WP2) NATIONAL FINANCIAL EDUCATION GAP AND NEEDS SURVEY GERMANY

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1 EUROPEAN FINANCIAL EDUCATION PARTNERSHIP (WP2) NATIONAL FINANCIAL EDUCATION GAP AND NEEDS SURVEY GERMANY This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

2 EXECUTIVE SUMMARY (DE) Es gibt in Deutschland eine Vielzahl von Angeboten und Lernmaterialien zur Förderung des Verbraucher- und Finanzwissens für Schüler der Sekundarstufe, doch weisen insbesondere Schüler mit Migrationshintergrund und soziale Benachteiligte z.t. erhebliche Wissens- und Handlungsdefizite auf. Eine intensivere Vermittlung von allgemeinem Finanzwissen in der Sekundarschule scheitert vor allem an den vorhandenen Curricula, die dafür weder Zeit noch Raum lassen. Verschiedene Versuche, ein eigenständiges Schulfach Ökonomische und finanzielle Allgemeinbildung einzuführen sind bislang gescheitert. In der Schulung von Lehrpersonal sowie in der adressatengerechten Anpassung von Lehr- und Lernmaterialien werden wichtige Ansatzpunkte zur Verbesserung der Situation gesehen. Erprobt werden sollten auch neue Vermittlungswege außerhalb der Schule; Jugend- und Freizeitheime, Clubs und soziale Treffpunkte könnten geeignete Orte zur Ansprache dieser Zielgruppen sein. Basierend auf den Ergebnissen der in Deutschland durchgeführten Untersuchungen, verfolgt das deutsche EFEP-Projekt der HWR Berlin einen zweifachen strategischen Ansatz: 1) Zur Vermittlung von Finanz- und Verbraucherwissen an sozial benachteiligte Jugendliche sollen Netzwerke mit Vertretern aus sozialen Organisationen, Schuldner-Beratungsstellen, Banken und Finanzdienstleistern sowie aus öffentlichen Institutionen aufgebaut werden. 2) Darüber hinaus soll in Zusammenarbeit mit den Schulbehörden versucht werden, in den Lehrplänen mehr Zeit und Raum zur Vermittlung von Finanz- und Verbraucherwissen vorzusehen. 2

3 EXECUTIVE SUMMARY (EN) In Germany there are a myriad of activities and learning materials for the promotion of consumer and financial education for secondary school students, but especially students with a migration background and socially disadvantaged youngsters demonstrate considerable deficits of knowledge, skills and competences in financial subjects. The provision of more intensive financial education in secondary schools is hampered by lacks of time and space in the existing curricula. Several attempts have been made to create a unique subject for economic and education in secondary schools but so far none of them has been successful. Appropriate training and support for teachers by external experts as well as customized adaptations of teaching and learning material are seen as important approaches to improve the current situation. In addition, new teaching approaches and communication channels outside the schools should be tested: youth and leisure centers, clubs and social meeting places could be appropriate localities for better addressing these target groups. Based on the findings of the national survey, the German EFEP project will pursue a double strategic approach. 1) To convey financial and consumer knowledge to young migrants and to socially disadvantaged youngsters, networks with representatives from social organizations, debt counseling agencies, banks and financial institutions as well as public institutions should be established. 2) In collaboration with the school authorities it should be tried to provide more time and space in the lesson plans for secondary schools to teach financial literacy issues. 3

4 1. The prevailing situation of Financial Education in schools The case of GERMANY In November 2010 the FORSA Institute presented the results of a most recent study into issues of financial education and consumer rights in Germany. The study, that had been commissioned by the German Federal Ministry for Nutrition, Agriculture and Consumers Rights (BMELV), surveyed the knowledge of 16-year old pupils in secondary schools. Some exemplary results may demonstrate the prevailing situation: About one fifth of the respondents stated, that a cheque account is for «to get reasonable interest rates on savings». 19% believe that a cheque account makes it «easier to save regular small amounts». Almost one in ten respondents (9%) don t know the concept of a cheque account or think that you do not need such an account. Even so 52% know what a cheque account is for. But almost a third of the respondents did not know that interest rates are higher than savings rates. 1 The responsible minister, Mrs Ilse Aigner, participating in the presentation of the survey results and concluding from these findings, saw serious deficits in financial issues and she called for more financial education in schools: Education of consumers must start in schools and must be delivered either as a particular subject or as part of existing lesson plans. She announced to establish in cooperation with the consumer associations a new nation-wide network within the next two years, which should provide better on-line support to teachers. The identified deficits might come as a surprise because a wide range of learning and teaching material for financial education does exist already in Germany. Many promoters who are active at national as well as at regional level engage to supply adults and consumers as well as pupils, students and teachers with appropriate material. At national level the Association of German Banks (Bundesverband deutscher Banken / BdB) has been promoting economic and financial literacy for many years. Over 20 years ago the BdB set up a special unit called Schul/Bank, which is designed to get young people interested in financial issues and making the subject more accessible to them. The Schul/Bank has developed a range of programmes for use in the classroom; it supports teachers in teaching economics and finance, and makes available specially designed educational material. The association has created as special website for both pupils/students and teachers Verbraucherwissen.html 2 4

5 The programme essentially comprises the following elements: Geld-Special (Money Special) is a dedicated internet portal that offers fact sheets and worksheets on managing money, payment services, saving, investing and borrowing. Rund ums Geld (All about Money) is a different kind of book about money. The young people immerse themselves in a story; make their own decisions and in doing so influence how the action develops. Schul/Banker is a competition for students aged from 16 to 19 engaged in running an imaginary bank. Jugend und Wirtschaft is a joint project of BdB and the newspaper Frankfurter Allgemeine Zeitung (FAZ), in which schools and teachers are provided with upto-date material for pupils. In addition a representative from FAZ visits classrooms periodically. The BdB has also called for financial education to be taught as a compulsory subject in its own right. A blueprint for teaching economics at non-vocational schools has been published in order to highlight the importance of putting the subject on the curriculum. The blueprint is available on the website of schulbank.de. Initiative Finanzstandort Deutschland (IFD) is an action group consisting of the main players of the German financial sector. The members of IFD represent all sections of the financial services sector; 3 it operates in cooperation with the Federal Ministry of Finance and the Bundesbank, and is actively involved in raising the level of financial literacy with special focus on secondary schools. The internet portal of IFD has been especially designed for pupils/students and teachers and is jointly maintained by IFD members. 4 The Sparkassen are another very active promoter of financial literacy for pupils in primary schools and secondary schools. Sparkassen Schulservice is publishing journals for pupils and students, newsletters and calendars for teachers, as well as class-room learning and teaching material. E-learning material is also available on the website of the Schulservice. 5 The SCHUFA organization, the nation-wide operating association for the protection of creditors, has developed and is distributing a CD-ROM with learning 3 For the members of IFD see:

6 material and teaching methods. The Charlotte-Checker-Story consists of teaching material for two modules: Module 1: What are credits? is about credit transactions, trust and the SCHUFA Module 2: What to do if money has gone long before the end of the month? is about financial planning, dealing with money and potential debts traps. The Schufa has commissioned also a study, which surveyed how youngsters between 10 and 18 years of age are dealing with money in everyday practice. 6 All in all, youngsters act quite responsible with their money, but a minority of 6% of children and young adults between 10 and 17 years is indebted, with an increasing risk in becoming so in parallel with rising adolescence. 23% of the youngsters mention fast food as the reason for borrowing money, expenses for clothing and entertainment is mentioned by 16% each, 13% mention computer software and 8% blame the costs for their mobile phone. An important initiative for financial literacy and against indebtedness was launched in a joint action of the Federal Ministry of Youth and Family Affairs, consumer associations, debt counselors and Bundesverband deutscher Banken. In recent years the number of indebted young people has grown, which is due to raising consumption needs in combination with a lack of financial literacy. Efforts have been made to increase learning opportunities for to acquire financial and consumer skills in schools. A «toolbox» for to support teaching in secondary general schools and secondary vocational schools has been created consisting of a number of modules, which are adressing different needs of young people. 7 Linked to the promotion of financial literacy in general and in Germany particularly to the prevention of indebtedness is also the FINALIST-project, that was financed by the EU Grundvig programme from 2005 to Several modules for financial education of young adults above 18 years of age have been developed by the partners of this project. The German partners, HWR Berlin and Bezirksamt Kreuzberg-Friedrichshain in cooperation with AWO Schuldnerberatung and Dilab e.v. mainly addressed youngsters with a migrant background and with social disadvantages participating in vocational training. A tuition handbook with 41 6 Lange, E. & Fries, K.: Jugend und Geld Eine empirische Untersuchung über den Umgang von jährigen Kindern und Jugendlichen mit Geld. Münster/München nd_geld_2005.pdf

7 lessons entitled MONEYCARE - Pass auf Dein Geld auf! is available both as CD- ROM as well as in the internet. 9 The experiences made in this project indicate together with the results of other research that the mode of delivery is a most crucial issue when addressing financial literacy issues of young migrants and socially disadvantaged youngsters. 10 Migrants tend to be more exposed to risk when dealing with financial issues than the average population: 11 Compared to the total population, migrants are less likely to make use of financial services. Vast discrepancies appear in the use of cash-cards, onlinebanking and time deposits. Migrants tend to save less than the total population. Half of the participants of the study with a migration background admitted to have no old-age provision. A vast undersupply with existential insurances (e.g. personal liability insurance) combined with an oversupply with less important insurances (e.g. legal defense insurance) was recognized. The standard of financial knowledge is assumed to be rather low. Compared to the total population, fewer information channels are made use of. Concluding from these experiences dealing with financial education of migrants, Evers & Jung (2007) suggest for the mode of delivery to ensure that mechanisms of community participation are applied, that support and compliance from migrant community organizations is ensured, and that NGOs, banks, social service providers as well as the public sector should work together Salman, R. & Menkhaus, B.: Mit Migranten für Migranten. In: Beauftragte der Bundesregierung für Migration, Flüchtlinge, Integration und Gesundheit. Berlin 2006, p Hayen, D. et al.: Migranten und Finanzdienstleistungen. Study carried out on behalf of the Federal Ministry for Consumer Protection (BMVEL), Evers & Jung: Survey of financial literacy schemes in the EU 27. Hamburg 2007, p

8 BOX containing main points of 1. Plenty of learning and teaching material for financial education at secondary school level is available in Germany. Many promoters mostly banks and banking organizations but public authorities also are active in this field providing a wide range of tools. To give an example: The Association of German Banks (Bundesverband deutscher Banken / BdB) has been promoting economic and financial literacy for many years. Over 20 years ago the BdB set up a special unit called Schul/Bank, which is designed to get young people interested in financial issues and making the subject more accessible to them. The Schul/Bank has developed a range of programmes for use in the classroom; it supports teachers in teaching economics and finance, and makes available specially designed educational material. The BdB has also called for financial education to be taught as a compulsory subject in its own right. A blueprint for teaching economics at non-vocational schools has been published in order to highlight the importance of putting the subject on the curriculum. Migrants tend to be more exposed to risk when dealing with financial issues than the average population: Compared to the total population, migrants are less likely to make use of financial services. Vast discrepancies appear in the use of cash-cards, online-banking and time deposits. Migrants tend to save less than the total population and more often they have no old-age provision. The standard of financial knowledge amongst pupils with a migration background and/or from socially disadvantaged groups is assumed to be rather low. They have severe deficits in the relating skills and competences and a growing minority is already indebted. Many of these youngsters are hardly affected by the usual class-room based delivery methods for financial education in schools. Experiences from research suggest to apply a community-based approach to better serve the financial literacy needs of these groups. 8

9 2. The new EFEP Survey 2.1. Methodological remarks Peculiarities of the research approach in Germany The research approach that was applied in Germany deviated slightly from the general approach adopted for the EFEP-project and applied in the other partner countries. The German team conducted a schools survey and an experts survey, due to the specific target group in Germany, i.e. socially disadvantaged youngsters, a survey amongst parents was not seen as appropriate. Furthermore, in Germany the experts survey was split into two phases. Given the sensitive context and following the basic rules for empirical research, the German team undertook a pre-testing of the provided questionnaires first, in order to test its feasibility and to adapt the research instruments to the prevailing circumstances. N=3 experts have been approached in the first step and a further n=4 experts have been asked in the second step, the stakeholder interviews (see 2.2.1), to give their feedbacks to the results of the survey. According to the experts views collected in the pre-test phase, the list of modules, presented in the annex to the questionnaires was modified. Some of the listed modules were assessed as redundant and inappropriate for German pupils. Altogether four modules have been removed and replaced by other themes being proposed by the contacted experts. The subjects that have been removed all dealt with soft skills like team work & decision making, first impression last or wait a minute!. Soft skills like team working are part of every-day learning in German schools, starting from the first year in primary education onwards, pupils are encouraged to work together in teams. The other subjects were dropped due to their weak and unclear relationship to financial education issues; furthermore the interviewed experts put in question if such subjects can be taught in particular lessons instead of being integrated in practical role-plays and longer lasting simulations. Therefore, the German EFEP-partners were recommended not to promote particular workshops of 45 minutes dealing with the soft-skills subjects but to drop these from the list and to include alternative modules, which according to the experts view seem to be closer to financial education needs and more appropriate for the target group of socially disadvantaged youngsters. In the survey itself the newly incorporated subjects later on were agreed most strongly by the respondents (see section 2.2.2), especially in comparison to one soft skills module entitled getting the message. This module has been kept to 9

10 review critically if the changes made had been adequate. In fact, as a result of the survey this module was rated rather useless. In conclusion, these results can be seen as a validation of the methodological approach adopted in Germany. The added value of the peculiar approach is clearly demonstrated Organization of research The sample of the national research in Germany consists of n=20 experts and n=37 teachers from different kind of schools. Starting end of January 2011, the research team contacted schools as well as experts working with migrants and socially disadvantaged youngsters in community settings. A variety of schools have been chosen, consisting of regular secondary schools, schools for technical and vocational education on secondary level as well as secondary schools specialized in certain subjects (trade, domestic services). Altogether n=60 questionnaires have been distributed in n=10 schools. The questionnaires have been delivered personally to the schools on February 1 and 2. The deadline was fixed for February 14 and the research team has collected the filled in questionnaires personally on this day. Thus, for the respondents the survey was undertaken in full anonymity, and with n=37 filled in questionnaires the response rate is rather satisfying. The main criteria for choosing the experts were their direct linkage to socially disadvantaged youngsters and their experience in working with this target group. A variety of experts have been contacted, including street-workers, social workers active in public schools, professionals working in drug counseling agencies and debt counseling organizations, and other experts from NGOs working in community settings. Altogether n=20 experts have been contacted personally, leading to a response rate of 100%. With n=3 the questionnaires have been pretested; with n=4 personal meetings have been arranged to assess and to discuss the results of the survey. The personal interviews focused mainly on two issues. The priority subjects for to promote the financial education of socially disadvantaged groups and the delivery methods that should be applied in order to reach this target group. 10

11 BOX containing main points of 2.1. Due to the specific target group in Germany, a schools survey and an experts survey was conducted. Given the sensitive context a pre-test of the questionnaire was undertaken that resulted into a slight modification. Some of the listed modules were assessed as redundant and inappropriate for German pupils. Altogether four modules have been removed and replaced by other themes being proposed by the contacted experts. The subjects that have been removed all dealt with soft skills like team work & decision making, as these skills are part of every-day learning in German schools. Starting from the first year in primary education onwards, pupils are encouraged to work together in teams. The sample of the national research in Germany consisted of n=37 teachers from different kind of secondary schools and n=20 experts working in community settings with socially disadvantaged youngsters. The main criteria for choosing the experts were their direct linkage to socially disadvantaged youngsters and their experience in working with this target group. The experts included have been street-workers, social workers active in public schools, professionals working in drug counseling agencies and debt counseling organizations, and reprentatives from NGOs working in community settings. Personal interviews have been made with seven experts. The interviews focused mainly on two issues. The priority subjects for to promote the financial education of socially disadvantaged groups and the delivery methods that should be applied in order to reach this target group Survey findings Findings from Schools survey Most of the respondents (n=21) to the schools questionnaire come from public secondary schools; n=3 are familiar with private/free schools and n=10 are conversant with other schools, mainly from the technical and vocational education strand. N=3 respondents did not reply to this question. 11

12 W h a t i s t h e s c h o o l t y p e y o u ' r e m o s t f a m i l i a r w i t h? S e c o n d a r y S c h o l ( P u b l i c l y F u n d e d ) 3 S e c o n d a r y S c h o l ( I n d e p e n d e n t ) 1 0 o t h e r s 3 n o r e p l y The answers to question no A1 indicate that financial education of students is already an issue in the vast majority of schools. In n=30 of the schools, the respondents are referring to, lessons in financial education are given already. In two schools they think about to offer financial education and in n=5 (out of n=37) schools financial education so far is not an issue q u e s t i o n A 1 : D o e s y o u r s c h o o l c u r r e n t l y t e a c h o r d e l i v e r a s p e c t s o f f i n a n c i a l e d u c a t i o n? y e s n o n o, b u t w e a r e c o n s i d e r i n g t h e i n c l u s i o n o f t h i s 2 12

13 Given this background it is not a surprise that in question no A2 a majority of n=26 respondents did not give reasons for not offering tuition in financial education. The meaningful responses to this question differentiate between two kind of reasons: For the first set the main reasons are indicated by n=10 respondents who quote that financial education is not seen as part of the curriculum and another n=10 answers stating that there is no time or space in the curriculum for lessons related to this subject. A second context of justification is seen in the teachers, their qualification and motivation. N=6 respondents quote a lack of available staff resources, n=7 declare that the teachers lack expertise in the subject and n=3 argue that teachers lack the motivation to embark on such activities. Two respondents see difficulties to convey the subject to the students / pupils in their schools. 13

14 question A2: Why do you not currently teach or deliver aspects of financial education to pupils? no reply 26 others 0 teachers lacking motivation to embark on such activities 3 teachers lacking expertise in the subject 7 teachers lacking confidence in the subject 0 not seen as part of curriculum 10 difficulty in teaching the subject to pupils 2 no time or space in the curriculum 10 available teaching resources do not meet our needs available teaching resources too expensive 1 1 lack of staff resources available Question A3 asks for the curriculum areas or subjects in which financial education issues are taught., with business studies / education being the most popular subject, indicated by n=25 respondents. Enterprise education / 14

15 entrepreneurship is mentioned by 5 respondents and maths by n=4. N=5 respondents quote that financial education is not part of a specific subject and is rather taught across the curriculum (n=2). Home / domestic economics is mentioned by n=2 respondents. question A3: Within which of the following curriculum areas or subjects is financial education taught? no reply 7 others 8 don't know 0 not part of specific subject 5 across the curriculum 2 Enterprise Education 5 Business Studies/Education 25 Home Economics 2 English ICT 0 0 Maths The answers to question A4 reveal two different approaches for the tuition of financial education. The first approach is characterised by the provision of lessons as part of the regular programme of lessons, which is indicated by n=22 respondents, and the item integrated into a range of lessons across the curriculum, quoted by n=4 respondents, belongs to the same category. The other approach consists of the provision of occasional lessons, indicated by n=14 respondents, or one of lessons / events (n=11). Special activities, such as 15

16 school banks, pupil councils, charity events, enterprise events, etc are of the same occasional kind and are indicated by n=2 respondents. q u e s t i o n A 4 : H o w i s f i n a n c i a l e d u c a t i o n t a u g h t i n y o u r s c h o o l? n o r e p l y 7 d o n ' t k n o w 0 o t h e r s 1 t h r o u g h s p e c i a l a c t i v i t i e s, s u c h a s s c h o o l b a n k s, p u p i l c o u n c i l s, c h a r i t y e v e n t s, e n t e r p r i s e e v e n t s e t c. 2 i n t e g r a t e d i n t o a r a n g e o f l e s s o n s a c r o s s t h e c u r r i c u l u m 4 o n e o f f l e s s o n s / e v e n t s 1 1 o c c a s i o n a l l e s s o n s 1 4 r e g u l a r p r o g r a m m e o f l e s s o n s Questions A5 (indicated in the following table as A8) asks for the most important resources in teaching financial education subjects in teaching financial education. According to the answers received, three main resources can be distinguished. 16

17 The first one, which is mentioned by n=25 respondents, stresses the external support from experts in the field, enacted by school visits, seminars, lessons, etc. The second main resource is seen in the availability of well-designed / customized teaching material, stated by n=25 respondents, and another n=6 respondents point into the same direction, when stressing web / ICT resources as most important. The availability of teaching staff with ability in teaching financial education is quoted by n=15 respondents as the most important resource. This answer is closely related to a similar statement which also gives a central role to the teachers and their teaching abilities: N=12 respondents mentioned the direct guidance how to deliver financial education in the classroom, for example by dedicated lessons plans, examples, as the most important resource. Altogether, external support, customized learning and teaching material and further training for teachers are seen as the most important resources. Teachers as most important resource are supported by a statement quoting the explicit recognition of teachers undertaking extra teaching load for this subject (n=5). 17

18 question A8: What is the most important resource in teaching financial education in your school? no reply 3 don't know 0 others 0 Teaching staff with experience of teaching financial education 15 Web / ICT resources 6 Well designed/customized teaching material 24 Explicit recognition of teachers undertaking extra teaching load 5 Direct guidance on how to deliver financial education in the classroom (dedicated lesson plans, examples of best practice etc) 12 External support from experts (school visits, seminars etc) Question A6 (indicated in the following table as A9) intends to find our more detailed information on the experiences that have been made with financial 18

19 education in the surveyed schools. The table indicates the median of consent with certain statements in the questionnaire. With a median value of 1,2 (strongly agree), the statement that external support is of good quality finds the strongest consent. The statements that teachers are motivated and students are motivated are at least slightly agreed (median: 2,0). With a median of 2,1 the support by schools administration is still slightly agreed; the same applies for the statement that the material used is adequate and of good quality (median: 2,3), whereas the sufficient availability of external support is rated next to neutral with a median of 2,4. question A9: To what extent would you agree with the following statements in relation to the training material used for delivering financial education courses in your school? teachers are motivated 2 teachers are experienced 2,3 school s Administration is supportive 2,1 pupils are motivated 2 external support is of good quality 1,2 external support (e.g. experts) is sufficient 2,4 the material used is adequate and of good quality 2,2 agree strongly 1 1,5 2 2,5 3 3,5 4 agree slightly disagree slightly disgree strongly In question B1 the respondents are asked if they are aware of other resources for the promotion of financial education. Most of the respondents deny (n=19), n=6 are not sure, n=5 do not provide information to this question, whereas n=7 respondents state that they are aware of other resources. 19

20 question B1: Besides those already used are you aware of other financial education teaching resources available for use in the type of courses that you might be delivering in the future? yes no not sure no reply In question B2 participants are asked to mention some of the resources that they either use already or that they know. A variety of answers have been given which do not allow for aggregation. Some mention films and books, some others newspapers and journals and some teachers refer to self-developed material. But reference is also made to existing material (that has been mentioned mostly in section 1 of this report), such as the material from the Sparkassen or the Moneycare modules, or to the material from consumer associations, Stiftung Warentest or the debt conseling agencies. With question B3 the participants in the survey are asked to evaluate the existing resources for financial education in terms of a number of criteria proposed by the questionnaire. Contribution to the teachers preparation in relation to financial education is seen as best resource and with a median of 2,0 rated as good. With a median of 2,4 the statements contribution to pupils learning and assisting teachers to feel more confident in delivering financial education are rated both as nearly neutral. The statement helping your school to offer a planned and coherent programme of financial education is rated with a median of 2,6 and thus as slightly poor. 20

21 question B3: How would you rate the resources that you know of in terms of the following criteria? assisting teachers to feel more confident in delivering financial education 2,4 contribution to the teachers preparation in relation to financial education 2 helping your school to offer a planned and coherent programme of financial education contribution to pupils learning 2,4 2,6 1 1,5 2 2,5 3 3,5 4 very good good poor very poor In section C the interviewees are asked to assess a number of subjects according to the potential benefits for their students, with the subjects being shortly explained in an annex to the questionnaire. As already said in the introduction part of this national report, the German team has adapted the list of subjects in the annex in order to respond to the particular context of the target group in Germany and making reference to the feedbacks received from a pre-test of the questionnaire that was undertaken with experts in the field. With a median 0f 1,3 the subject dealing with sensible borrowing is rated as very useful, followed by the subject dealing with contractual rights and duties, a German specific subject that was rated with a median 0f 1,4. Another newly incorporated subject ( consumption and advertisements ) has also has achieved strong agreement; its median is 1,5 and the same value is given to the module named managing your money. A second group of modules is rated between very useful and quite useful. This applies for the module on banks, financing and loans which achieved a median 21

22 value of 1,7, as well as for the modules named finance for life and what for do I spend my money? to both of which the respondents attributed a median value of 1.7. question C2: How useful would you consider each of the following training modules? Getting the Message 2,9 From CV to Salary 2,7 It s My Business 2,5 Sensible Borrowing 1,3 Finance for Life 1,8 Managing Your Money 1,5 Banken, Finanzierung, Kredite Wo bleibt mein Geld? 1,7 1,8 Verträge - Rechte und Pflichten Konsum und Werbung 1,4 1,5 1 1,5 2 2,5 3 3,5 4 very useful quite useful of limited usefulness rather useless Banken, Finanzierung, Kredite (banks, financing, loans) Wo bleibt mein Geld? (What for do I spend my money?) Verträge Rechte und Pflichten (Contracts - rights and duties) Konsum und Werbung (consumption and advertisements) 22

23 For a third group of modules the usefulness is seen as limited; this group includes the modules named getting the message (median 2,9), from CV to salary (2,7) and it s my business (2.5). The questions in part D of the questionnaire are of a more general character and intend to focus on major issues for stronger support of financial education in secondary schools. In question D1 interviewees are asked if they are satisfied with the current state of financial education in their school. The majority of respondents (n=21) are not satisfied, n=10 are not sure and n=6 quote that they are satisfied with the current state of affairs. question D1: Are you satisfied with the current levels of support, advice or help in relation to the teaching or delivery of financial education? yes no don't know/not sure With the open question D 2 participants have been asked to state why they are not satisfied with the current levels of support. The variety of given answers fall into five categories. The first and most frequently mentioned one is lacking time to deal with financial education due to the restrictions in the lessons plans and the defaults of the curriculum. Lack of interest from the side of the pupils is addressed in a second bundle of answers. In the third category of answers a lack of external support is mentioned as the reason for dissatisfaction with the current state of affairs. The fourth category is addressing the lack of (continuous) training for teachers in subjects that are related to financial edcuation needs. Finally, some respondents refer to a lack of appropriate teaching and learning material. In the following question D3, which asks for further support or advice, a big majority (n=29) is stating that their school is in need of (external) support, 23

24 whereas only n=2 deny the need for support and n=6 indicate that they are not sure about this issue. question D3: Does your school need any further support, advice or help in relation to the teaching or delivery of financial education? yes no don't know/not sure Question D4 goes into more detail on the kind of support that is needed in order to deliver appropriate financial education. Training of teachers is mentioned most often (by n=32 respondents), followed by a more general statement asking for external financial experts to support delivery in the classroom (n=30). Another focus is put on interactive resources (n=19 entries) and similar resources such as lesson plans, examples of good practice etc. N=17 respondents are demanding additional funding, n=10 would like to have more advice on how to integrate financial education into other lessons. With these last entries the need for more and/or better training of teachers, above mentioned as first priority, is emphasised again. 24

25 question D4: What sort of help does your school would require to deliver financial education? no reply 2 others 0 don't know 1 more training of staff 32 more advice on how to integrate financial education into other lessons 10 external financial experts to support delivery in the classroom 30 interactive resources ( DVDs, CD- ROMS, Websites etc) resources such as lesson plans, examples of best practice etc additional funding Findings from experts survey In Germany, altogether n=20 experts have been approached in a two-step approach, which helped to adjust the questionnaires to the German context (see section 2.1). In their answers to question no. 1, four quarters of the experts who responded to the questionnaire (n=15) declare that there is a very big need for financial education of secondary school students (with social disadvantages). Another n=4 still declare a big need, one respondent did not answer this question. Thus, all respondents either state a very big or at least a big need for financial education of secondary school pupils. 25

26 question 1: How do you estimate the current demand for financial education among pupils? = very big = completely unnecessary 1 no reply The responses to question no. 3 indicate that the majority of the experts (n=11) is aware of the subjects in financial education that are taught so far in secondary schools; n=9 respondents state that they don t know the subjects. question 3:Do you know topics currently offered in relation to the financial education of pupils? yes no 26

27 The effectiveness of the subjects that are currently taught is addressed in question no. 4 and the given responses are quite heterogeneous. Nearly half of the respondents (n=9) did not answer to this question, probably those who answered in question no. 3 that they don t know the subjects that are currently taught. Out for the remaining respondents, n=8 assessed the effectiveness of the subject positive: n=3 assessed them as excellent and n=5 as rather good. question 4: How do you estimate the usefulness of the topics you know? = excellent = very bad no reply With question 7 the experts are asked to assess the potential benefits of a number of subjects students, being shortly explained in an annex to the questionnaire. With a median 0f 1,05 the German specific subject dealing with contractual rights and duties is rated as most beneficial. A second group, which also consists mainly of German specific subjects comes next - rated with median values between 1,3 and 1,4. In detail these are the modules on sensible borrowing, on consumption and advertisement and the module named What for do I spent my money? which are rated with a median value of 1, 3 each, and a module called managing your money with a median value of 1,36. The newly incorporated subject named consumption and advertisements gets a median value of 1,4 and thus also achieves strong agreement. The modules named finance for life (median value 1,63) and the module named banks, financing and loans (median value 1,85) are rated between very useful and rather useful. 27

28 The ratings for the remaining modules are below the category quite useful. From CV to salary gets a median value of 2,2, the median values for the modules it s my business (2,75) and getting the message (2,6) come even closer to the category limited usefulness. question 7: How useful would you consider each of the following training modules? Getting the Message 2,6 From CV to Salary 2,2 It s My Business 2,75 Sensible Borrowing 1,3 Finance for Life 1,63 Managing Your Money 1,36 Banken, Finanzierung, Kredite Wo bleibt mein Geld? 1,3 1,85 Verträge - Rechte und Pflichten 1,05 Konsum und Werbung 1, very useful quite useful of limited usefulness rather useless Banken, Finanzierung, Kredite (banks, financing, loans) Wo bleibt mein Geld? (What for do I spend my money?) Verträge Rechte und Pflichten (Contracts - rights and duties) Konsum und Werbung (consumption and advertisements) 28

29 2.2.3 Stakeholders interviews Stakeholder interviews have been held with experts from financial services as well as with a number of persons working with socially disadvantaged youngsters and migrants in community settings. The main points of discussion have been the appropriateness of the existing teaching and learning materials for the target group envisaged in Germany, i.e. young migrants and socially disadvantaged youngsters in secondary schools adequate locations and settings for the tuition of financial literacy issues to this target group political strategies for structural improvement of financial education for young people. In view of the existing learning and training material some experts raised doubts about its appropriateness for the target group. These experts suggested stronger customization both of the contents as well as for the methods of delivery. Contents should be presented in a more interactive way, with more games and simulations and should be combined with playful methods of delivery. In terms of locations and setting for the tuition of financial literacy issues it was suggested, that classroom teaching should be limited in favor of delivery in community settings close to the local neighborhood of the envisaged target groups. In order to achieve structural improvements and to arrive at sustainable effects, it was suggested to involve a broad range of stakeholders into the delivery of financial education to these target groups. Migrant organizations, social service providers, debt counseling agencies, banks and financial services, school authorities and other public institutions should be approached and mobilized for active participation. 29

30 BOX containing main points of 2.2. As to be expected for Germany, financial education is already an issue in many secondary schools. Nevertheless, the scope of delivery is not considered as being sufficient. Time or space in the curriculum are often short, many teachers lack expertise in the subject. Most financial issues are taught as part of business studies, where respective subjects are integrated into the lesson plans. The tuition of occasional lessons is a second approach. External support, customized learning and teaching material and further training for teachers are seen as the most important resources. External support usually is of good quality but is not sufficiently available. More assistance to teachers preparation for financial education lessons and external experts to support the delivery in the classroom are welcomed. The effectiveness of the subjects that are currently taught is varying; more customization is needed, especially to address socially disadvantaged pupils / students and young migrants. Subjects dealing with sensible borrowing, contractual rights and duties, managing your money, or consumption and advertisements are rated as very useful. Modules on more general issues not directly linked to financial education are rated as being of limited usefulness. The majority of respondents is not satisfied with the current state of financial education in their school. Lacking time due to the restrictions in the lesson plans and the defaults of the curriculum are most frequently given as reasons. Lack of interest from the side of the pupils is addressed a a second bundle of answers and the lack of external support is mentioned in a third category of answers. In order to deliver appropriate financial education more support is needed for training of teachers and external financial experts to undertake class-room delivery. Another focus is put on more interactive resources and examples of good practice. For the socially disadvantaged groups most of the interviewed stakeholders suggested stronger customization both of the contents of the modules as well as for the methods of delivery. They favor delivery in community settings in the neighborhood of the envisaged target groups instead of classroom teaching and suggested to involve a broad range of stakeholders. 30

31 2.3 Discussion of Survey findings and implied Policy implications The review of existing research and available resources for financial education undertaken in section 1 arrived at similar findings as the new EFEP survey. In principle, financial education of pupils / students at secondary school level is well established in Germany. Nevertheless, schools and teachers as well as the contacted experts articulate an additional demand for support from external resources in order to serve the increasingly differentiated needs of young adolescents. The main bottlenecks are in the existing lessons plans, where (too) few time and space is left for the tuition of financial literacy issues, and in the lack of appropriate staff resources. Provision of additional money seems not the appropriate key, schools are longing for more professional expertise and support. The EFEP-project should help to identify more clearly the additional resources that are needed for efficient financial education in secondary schools and it should demonstrate ways of mutual enforcing collaboration between internal staff and external financial professionals. All information that has been gathered proves clearly that certain target groups are severely underserved. These are mainly young migrants and socially disadvantaged youngsters. Thus, the findings definitely have confirmed the assumptions and the particular objectives of the German EFEP-partner. Customization of teaching and learning material and identification of appropriate delivery methods will be among the major tasks of the project. BOX containing main points of 2.3. The findings have proven that the financial education needs of the target group envisaged by the German EFEP partner are clearly underserved. The EFEP project will help to develop a targeted approach to overcome the identified deficits. Customization of teaching and learning material, collaborative networking and identification of appropriate delivery methods will be the major tasks. The interviewed experts suggested that contents should be presented in a more interactive way, with more games and simulations and should be combined with playful methods of delivery. Migrant organizations, social service providers, debt counseling agencies, banks and financial services, school authorities and other public institutions should be approached and mobilized for active participation. 31

32 3. Implications for EFEP project planning and implementation in GERMANY 3.1 Modules The results of the EFEP survey and the interviews with the experts suggested a stronger customization of the modules apart from its contents. In order to serve the education needs of the target group envisaged in Germany, contents should be presented in a more interactive way, with more games, role-plays and simulations. They should allow to have fun and therefore should be presented with playful methods. The German partner will concentrate on the customisation of those modules, which have been rated in the survey as very useful. This concerns the modules that are directly linked to issues of financial literacy and consumer protection, like sensible borrowing, contractual rights and duties, managing your money or consumption and advertisements. Modules with a broader focus intending to convey soft skills will not be taken into consideration. 3.2 Delivery methods As assumed by the German EFEP-partner and confirmed by both the results of existing research and the new survey, identification of innovative delivery methods will be a major challenge. The interviews undertaken with expert stakeholders have given important advice for the implementation of workpackage 4: the development of delivery networks. This network may involve representatives from social organizations, debt counseling agencies, migrant organizations, banks and financial institutions, higher and vocational training establishments active in the sector, professional organizations, school authorities as well as other public institutions. Working with these key stakeholders will help to gain support for the project and to implement the pilot workshops in schools as well as in community settings. Targeted financial education for socially disadvantaged youngsters should not be restricted to classroom teaching only. Together with the network stakeholders the German partnership will investigate for alternative locations and settings in the local neighborhood of the envisaged target groups. In addition, in order to strengthen classroom delivery of financial education in secondary schools, it is advisable to seek close collaboration with regional school 32

33 authorities, with the intention that more time and space in the lesson plans for secondary schools are dedicated for to teach financial literacy issues. BOX containing main points of 3. To serve the particular education needs of the target group envisaged in Germany (young migrants and socially disadvantaged pupils), the contents of the modules will be customized and presented in a more interactive playful way. The German partner will concentrate on the customisation of those modules, which have been rated in the survey as very useful. This concerns the modules that are directly linked to issues of financial literacy and consumer protection for the envisaged target troup, like sensible borrowing, contractual rights and duties, managing your money or consumption and advertisements. The piloting workshops will be focused on these modules that directly deal with financial literacy issues and consumer protection. Modules with a more general focus will not be taken into consideration. The interviews undertaken with expert stakeholders have given important advice for the implementation of work-package 4 of the EFEP-project: the development of delivery networks. This network may involve representatives from social organizations, debt counseling agencies, migrant organizations, banks and financial institutions, higher and vocational training establishments active in the sector, professional organizations, school authorities as well as other public institutions. Identification of innovative delivery methods will be a major challenge. The establishment of a broad stakeholder network should help to implement the pilot workshops in schools as well as in community settings. Besides, collaboration with regional school authorities should help to strengthen and to intensify classroom delivery of financial education by providing more time and space in the lesson plans for secondary schools. 33