Financial Education in Schools Brazil José Alexandre Cavalcanti Vasco Head, Education and Investor Assistance Department Comissão de Valores Mobiliários – CVM (Securities and Exchange Commission of Brazil)

National Strategy for Financial Education 2 Chapter   Section I Introduction Section II Presentation of the main topics of interest (Economy/the Brazilian Financial System / Banks/ Financial Planning/Credit/Investments/ Social welfare/Insurance.) Section III 3.1 – Financial Education (FE) in schools (Educational Support Group – GAP) > CVM 3.2 - Adults Financial Literacy > Central Bank Section IV Governance > PREVIC Section V Conclusion Annexes FE in Schools – Guidelines National Survey on FE – Report  Inventory of FE projects in Brazil / International Experience 4 FE programs (the Central Bank, CVM, PREVIC and SUSEP)

Financial Education in Schools 3 Coordinated by the Brazilian SEC Dec 07: contact made with the Ministry of Education Apr 08: Partnership with Ministry of Education fully established ; presentation of the plan for schools (BM&Fbovespa and WG) May 08: Creation of the Educational Support Group : Financial Sector, Ministry of Education, Municipal and State Departments of Education. Training in Financial Markets for educators and representatives from Departments of Education (States and municipalities) Sept 08: Seminar at the Central Bank (Brasília) – draft. Oct 08: FE guidelines for schools approved Jun 09: Launch of second phase: pilot project (Secondary Education > program “Mais Educação”) Jun 09 - Feb 10: books + pedagogical project for schools

Financial Education in Schools dimensions goals skills actions 4 2 DIMENSIONS

Future Social Level Present Individual Level Past Space Dimension 5 Time Dimension global national regional local individual Social Level Future Present Individual Level Past

dimensions goals skills actions 6 2 7 GOALS

Space-related Goals Time-related Goals 7 Space-related Goals Responsible Consumption and Saving Knowledge and tools for independent decision-making Social awareness Time-related Goals Short-, mid- and long-term planning and decision-making Prevention Enable social mobility

dimensions goals skills actions 8 2 7 10 SKILLS

Skills Web Time-related Space-related Rights and responsabilities awareness S01 Social- and environmental -friendly financial decision making S02 Balancing financial wishes and needs S03 Understanding financial education texts S04 Independent decision making based on financial needs S06 Multiplying financial education knowledge and behaviour S07 S05 Critical attitude towards publicity Financial planning S08 Assessing prevention plans S09 Overcoming financial difficulties S10

dimensions goals skills actions 10 2 7 10 140 ACTIONS

12 Contents

INDIVIDUAL LEVEL 13 Consumption Saving Budget Planning Labour & Income

SOCIAL LEVEL Supply and Demand Interest Rate Inflation Unemployment Markets Financial System Institutions SOCIAL LEVEL

SOCIAL LEVEL INDIVIDUAL LEVEL Supply and Demand Inflation Consumption Saving SOCIAL LEVEL Interest Rate Markets Budget Planning Labour & Income Unemployment Financial System Institutions

Programme SIGN UP questionnaire GROUP 1 Individual LEVEL (short-term situations) Previous knowledge Topic 1 Daily family life Topic 2 Personal goods Topic 3 Social life Planning a dream GROUP 2 individual LEVEL (mid- and long-term situations) Previous knowledge Topic 4 Labour Topic 5 Entrepreneurship Topic 6 Larger projects Planning a dream GROUP 3 SOCIAL LEVEL Previous knowledge Topic 7 Public assets Topic 8 National economy Topic 9 World economy Planning a dream Programme SIGN OUT questionnaire

free delivery no interest discount Real-life contents

Formal contents

Real-life and formal contents

20 Teaching material Student’s book  72 Learning Opportunities: formal and real-life contents + activities + self-assessment questions Teacher’s book  a copy of the student’s book + teaching guidelines + further formal contents

Metadata – Teacher’s book Formal name Personal expenses Informal name Write it down so you won’t forget it Related topic Daily family life Formal Contents Expenses Personal and family budget Financial planning Skills S6 S7 S8 Actions Register and monitor personal expenses Estimate the cost of things Description This activity addresses the need of keeping records of what is purchased and how much is spent on a daily basis to allow greater control over one’s financial life. Students may already be undertaking some kind of register but possibly in an intuitive, inaccurate way and now they will learn to do it systematically. Self- assessment questions What have I learned? ( ) to write down my expenses on a daily basis ( ) to find out exactly how much I spend each month ( ) to estimate the cost of things I usually spend my money on Metadata – Teacher’s book

Implementation and Evaluation 35 Implementation and Evaluation “Mais Educação” Programme schools Regular selected state schools  Evaluation System Regular selected state schools Public Schools supported by Instituto Unibanco (a non for profit organization)

Impact Evaluation (World Bank and Brazilian specialists) Y Before After B B’ Impact A A Change t0 t1 Intervention

Implementation and Evaluation Public schools supported by Instituto Unibanco Ministry of Education Programs: “Mais Educação” “Ensino Médio Inovador” Impact Evalution (World Bank) 100 schools 800 – 1200 schools To be defined 5 States 19 States (tbd) 4 States Trainers Teachers Volunteers Interns Trainers Teachers Trainers Teachers

Implementation April-May 2010 Professores Geradores (Teachers) 1 por escola Multiplicadores (Trainers) 1 for 10 schools 8-hour training 16-hour training 20-hour distance-learning training 20-hour distance-learning training Jun-Nov 2010 Coaching on line Coaching on line

(Item Response Theory) Evaluation Dimensions: Short-term and long-term: Knowledge and Competencies (skills) Attitude (Behavior) Long-term impact: Exams (Item Response Theory) Questionnaire Follow up CPF

Thank you! Comissão de Valores Mobiliários (CVM) 40 Thank you! Comissão de Valores Mobiliários (CVM) The Brazilian Securities and Exchange Commission Contact: vasco@cvm.gov.br National Strategy: www.vidaedinheiro.gov.br CVM’s website: www.cvm.gov.br Investor’s website: www.portaldoinvestidor.gov.br