The National Bank of Ukraine (NBU) presented its vision of the joint Strategy for Financial Literacy for the financial market and all stakeholders. The Strategy is intended to uniform, coordinate and combine efforts of the state agencies, business and the civic society for improving financial literacy at the national level.
“We intend to provide Ukrainians with skills to survive in the real world full of challenges and changes. We work to create the environment in which wellbeing of Ukrainians can grow by establishing a new financial culture. We are aware that changes in the culture and behavior take a long way. But we are ready to ship off,” said NBU Communications Department Director Nataliia Bondarenko.
The vision of the strategy is based on European aspirations of the country, since a fully-fledged membership in the EU is the strategic goal of Ukraine set out in the Constitution. Consequently, the vision of the strategy is “a financially literate European Ukrainian”. This means that Ukrainian citizens will have sufficient financial awareness and be capable of making responsible decisions on private finances.
Key 5 priority decisions of the Strategy:
1. Change financial culture
Financial culture refers to the knowledge, skills, and attitudes required to help Ukrainians act in a financially responsible way. This also promotes greater financial inclusion levels. It incorporates a whole range of cultures, i.e., taxation, lending, pension provisions etc.
2. Make Ukrainians more European and more financially literate
The citizens are expected to share European values and be ready to live according to European standards, to draw up a private budget, to make responsible financial decisions, to make long-term financial plans, to make savings, to control their financial accounts, and to use loans and manage debts reasonably.
3. Focus on youth
Youth aged from 10 to 24 years (generation Z and Alfa) is the target audience. Focusing on the youth dictates new approaches to education, hence to the entire Strategy.
The agents of change can be the youth that educate their friends, parents, grandparents on financial expertise and skills the citizens need to make reasoned decisions and take responsibility for their own financial behavior.
4. Introduce a central communication platform
A central communication platform under a single brand will unite all stakeholders and events, and become recognizable and help build up trust.
5. Build a financial literacy hub for all Ukraine
The Information and Communications Center is a hub for financial education and communications on the mandate and functions of the NBU and will combine the Visitor center, the Money museum, the Youth education center, and the Teacher training center.
The NBU invites all interested financial market players, state agencies, nonprofit NGOs to join efforts and draft a single action plan on improving financial literacy based on the Strategy.
Active implementation of the Strategy is expected to commence in 2020.
For reference:
Financial literacy particularly facilitates responsible financial decisions. Responsible financial decisions will preserve private financial stability and result in financial stability of the state.
At the same time, financial literacy is an important prerequisite of financial inclusion, since it allows financial service consumers to use their potential to the fullest.
The NBU identifies financial inclusion as one of its strategic goals. Financial inclusion means creating conditions that encourage all segments of the population to use various financial services that are accessible, affordable, regulated, and fitting their needs in order to stimulate economic growth and reduce inequality in society.
Establishment and development of a consumer protection system and a national strategy and measures to improve the financial literacy of Ukrainians, as well as promotion of the cashless economy, will contribute to that goal.
As long-term goals, financial inclusion and financial literacy can be reached only through the coordinated effort of different stakeholders and partners.