The Financial Competence Framework for Children and Youth of Ukraine is published

An interdepartmental working group consisting of experts from the National Bank of Ukraine, the State Property Fund of Ukraine, the Ministry of Education and Science of Ukraine, and the National Securities and Stock Market Commission has prepared the Financial Competence Framework for Children and Youth of Ukraine (hereinafter – the Framework).

The Framework is a document that describes the key financial competencies of children and young people in Ukraine aged 5 to 18. In particular, it is a set of knowledge, skills, abilities and attitudes in the area of personal finance management and consumption of financial services. This knowledge and skills are the basis for making responsible financial decisions and ensuring and improving their own well-being.

The purpose of the Framework is to promote a common understanding of financial competencies for children and young people among public authorities, educational institutions, private organizations, and citizens who promote financial literacy education.

«The development of financial literacy is a priority for the NBU. According to research, the level of financial literacy among young people is low, and we want to change this. The Financial Competence Framework for Children and Youth of Ukraine is a significant step towards ensuring a consistent and comprehensive approach to the development of state policy in the area of improving the financial literacy of children and youth. The next step is to develop curricula and materials in accordance with the Framework and implement them in the educational process», commented Andriy Pyshnyy, Governor of the National Bank of Ukraine.

The Framework was developed based on the OECD/INFE Core Competencies Framework on financial literacy for youth, created by the Organization for Economic Cooperation and Development (OECD), which was supplemented and adapted to the Ukrainian context, as well as the Financial Competencies Framework for the adult population of Ukraine, and state standards for the relevant levels of education.

«Financial competencies are an integral part of everyone’s life, because the level of their mastery determines how competently we manage our own resources. This Framework will help to form a holistic and universal view of the level of financial literacy among children and youth in Ukraine. And at the same time, it will improve the teaching of financial competencies, including in educational institutions», said Minister of Education and Science of Ukraine Oksen Lisovyi.

It is expected that the widespread practical use of the Framework will contribute to the implementation of the state policy in the field of financial literacy and financial inclusion, as well as to the creation of a platform for the exchange of best practices and experience in the implementation of financial education. In addition, the Framework will ensure the implementation of a competency-based approach and serve as a basis for the implementation of the cross-cutting content area «Entrepreneurship and Financial Literacy» and the educational area «Child in Society. Social and Financial Literacy» in accordance with the requirements of the Basic Component of Preschool Education. In addition, it will contribute to the creation of modern curricula and teaching materials for students and pupils of educational institutions and educators.

«The creation of the Financial Competence Framework for Children and Youth is another step towards building a national consolidated system for the development and implementation of basic financial education. A systematic approach to the dissemination of knowledge on financial literacy and the efforts made by financial regulators and the educational community are aimed at forming a high financial culture of Ukrainian society as a key indicator of the country’s economic security», said Svitlana Rekrut, Managing Director of the DGF.

The structure of the Framework for Children and Youth follows the structure of the Financial Competence Framework for Adults in Ukraine, which divides the competencies into four content sections (each containing topics and sub-topics):

Section I. Money and transactions.

Section II. Financial planning and management.

Section III. Risks and rewards.

Section IV. Financial landscape.

The Framework also identifies the following cross-cutting lines:

• digital financial competencies;
• competencies in the field of sustainable development;
• financial sustainability;
• entrepreneurship;
• civic responsibility.

Each competency is described in three dimensions:

• awareness, knowledge and understanding;
• skills and behavior;
• confidence, motivation and attitude.

In total, the Framework describes approximately 900 financial competencies that students should master by the time they complete preschool, primary (grade 4), basic secondary (grade 9), and specialized secondary education (grade 12).

«Today, market regulators and other government institutions are making every effort to restore the country’s economy and develop all segments of the financial system. But consumers of financial services, instruments, and projects are an important link in these processes. Ukrainian children and young people need to grow up financially aware and acquire the necessary skills, as they are the future of our country. Therefore, the Financial Competence Framework for Children and Youth of Ukraine is an investment in our children for their well-being and the country as a whole», said Ruslan Magomedov, Chairman of the NSSMC.

The framework is available for free use by government agencies, private organizations and civil society at this link.

To make it easier to use, a tool for quick selection of financial competencies in Excel format will be useful. With the help of special tags, educational program developers, financial literacy trainers, and practitioners will be able to select and select the most relevant competencies for specific stages of a child’s or adolescent’s life.