Systematic approach is needed
Text: Kristina Haavala, Estonian Ministry of Finance
Photo credit: Pixabay
A long term vision, centrally coordinated and systematic teaching, unified and easily accessible teaching materials, as well as the further training of teachers are important for teaching consistent and relevant financial wisdom, becomes apparent from the shaping of financial literacy in the general education and vocational schools of Estonia about the study.
The study ordered by the Ministry of Finance and conducted by Civitta Eesti AS analysed how and with which methods, financial wisdom is taught in the general education and vocational schools of Estonia, as well as recommendations were given, for the systematic teaching of financial knowledge.
One of the main bottlenecks in teaching financial literacy is the lack of a cross-sectoral development document and a long-term action plan for the systematic teaching of financial literacy both in educational institutions and among the general population. The Ministry of Finance and the Ministry of Education and Research, together with partners, have organized a number of events and activities, but these have mostly focused on the economy and business rather than on the financial literacy of the individual. Furthermore, there is no comprehensive overview of what activities are offered and to whom. Another issue is that the topics of financial literacy have not been addressed systematically in the curriculum throughout the educational path.
Key findings and observations:
The teaching of financial wisdom should already begin in kindergarten or primary school. The acquisition of knowledge of financial wisdom in children and youth, is most effective when the school and home make thought through cooperation.
The theoretical knowledge of financial literacy, in recent years has improved among Estonian students. The knowledge of financial wisdom does not significantly depend on the mother tongue, place of residence or gender of the student.
It is desired to be seen in the case of general education, a stronger integration of the subjects of financial wisdom, in a thought through manner, in subject syllabi, in a manner that does not burden teachers and students.
The compilation of a personal budget, making salary related calculations, the creation of a student company, company visits, as well as presentations by external lecturers, are preferred the most, as effective teaching methods.
Financial wisdom subjects are treated sufficiently, in connection with areas of specialisation, according to the evaluations of representatives of vocational schools and the development of financial literacy should not be a separate aim, in vocational schools.
There is not to a large extent available traditional courseware that purely treats the subject of financial wisdom. It is required to gather the existing materials into a unified source, from where all teachers could use them.
The current level education of teachers, does not treat the subjects of financial wisdom. It would be important to centrally and from a single information source, to offer further training to future, as well as current teachers.
The teaching of financial wisdom strongly depends on the motivation and attitudes of the teacher, as the workload of teachers is large and the aims of teaching have not been agreed upon unambiguously. It is thus required in schools, for the teaching of knowledge of resultful and systematic financial wisdom, a cross sectoral vision, as well as a long term action plan, for educational institutions.
"The results of the study will be used as an input for the development of the directions of financial education trends in the coming years and in the compilation of a new Estonian financial literacy programme", said Bret Metsküla, the coordinator of financial wisdom, at the Ministry of Finance..
A total of 187 persons, from 15 general education schools and 6 vocational schools, were interviewed from July until October of 2020, in the framework of the study. Three target groups were included in the data collection: parties connected to the teaching of children and youths, parties connected with teaching teachers and experts in the field. The target group connected to the teaching of children and youths, was in turn divided into four sub-target groups: school management, teachers, parents and students.