Financial Literacy The Serbian Case USAID SERBIA ECONOMIC GROWTH ACTIVITY – October 1 st, 2010

Why spend time and resources on financial literacy ? 1. An informed client makes more and better use of the financial products. 2. An educated client makes informed decisions and is aware of potential risks. 3. Trust in the System is enhanced. 4.Political Leaders and policy makers are educated. 5. Cultivate and inform media. 6. A successful public literacy campaign demonstrates worth of a sound financial system.

Goals of Financial Literacy Campaign 1.Enhance understanding and thus trust in the financial system by stakeholders. 2.Increase support of policy makers in the development of the financial system. 3.Educate the population on the financial system: a. It is the individual’s money to invest B. Individuals have investment choices c. Trust strengthened, the financial system is sound

First Steps in Designing a Financial Literacy Strategy: Who are the decision makers? National Bank Industry Government / Ministry of Finance IMF / World Bank Which criteria will determine how decisions are reached? Consensus or availability of funds One institution drives the policy

First Steps….(continue) What is the duration of the campaign and what are its goals Public information versus public education General information versus individual replies How to Choose the right messages? Institutional info Public opinion research and focus groups Press coverage analysis

Public Attitudes and Fears: How to increase public recognition and its consequences or impact on the economy? Where do people obtain information Collective concerns: Past fears of instability and insolvency Love hate relationship Why dos transition last so long Performance of other countries

Suggested components of a public financial education campaign: Baseline: opinion analysis, identify research data Plan and test: messages and messengers Production and Action: tools, tactics, address concerns opinion leaders Test impact

Direct Contact: Identify potential allies and critics: Allies: Critics:

Channels of Communication: Media Newspapers Magazines / Specialized financial magazines TV Internet Call Centers Radio Brochures available at branches

Challenges Ahead: Enhance understanding of clients and public Provide regularly information Consumer protection Strengthen trust of the public Join efforts to educate public: Financial Literacy Strategy

SEGA Financial Literacy Campaign Train-the-trainer approach – Provided training for librarians of Nis, Novi Sad and Belgrade – Reached over thousand high school students Created internet portal that provides comprehensive information on financial products and services Wide media campaign that included articles and adds in electronic and print media