Providing High Quality Financial Education in School, Innovative Practices and Effective Approaches - Malaysia’s Experience Ooi See Eim Consumer and Market Conduct Department Central Bank of Malaysia 21 April 2016

Financial education (FE) in Malaysia targets key life events throughout life stages School Tertiary Education Entering Workforce Starting a family Raising a family Retirement Example of Key Life Events Open and operate bank account / pocket money mgmt. Online purchases Obtain study loan Getting a part-time job Use credit card Buy a car/house Pursue hobby Provide guarantee Pursue investments Plan for marriage/ honeymoon Have a baby Childcare Purchase insurance Children’s education Family recreation Change job Healthcare Support immediate & extended family Planning for Retirement Managing retirement fund Support dependents Pursue hobbies/ part-time job Estate planning Unexpected Life Events – e.g. losing job/money, untimely demise, divorce and receiving a windfall Common Elements: Essential financial skills and knowledge Budgeting Saving Spending Managing debt Investing Managing risk Rights & Responsibilities Products & services 2

FE in school evolved from co-curriculum activities to learning in classroom to ensure sustainability and effectiveness Phased-in roll out of FE elements into new school curriculum FE in schools via co-curriculum activities 2016 and beyond 2004 2014/15 1999 Integration of FE elements in school curriculum Financial education website 1998 School financial club 2016 Elevate FIs’ roles as technical experts for reference by teachers Develop FE portal with dedicated sections for school children and teachers Assess on implementation of FE in curriculum 2017 Integrate FE in curriculum for secondary schools 2021 Full integration of FE elements in all school levels 1997 Pocket money book Integrate FE in curriculum for primary schools, starting from year 4 Core subjects (e.g. English Language, Malay Language, Mathematics) Engage school heads, equip teachers with financial management knowledge and skills Develop FE modules, lesson plans, textbooks School adoption programme www.duitsaku.com an interactive online financial education tool aimed to enhance financial literacy among school children Comprise of interactive financial games, quizzes, financial calculations, online pocket money book Total membership of about 113,000 A platform for FIs to educate school children on personal money management Children engaged in money and finance related activities through workshops, visits to FIs and knowledge-sharing sessions Buku Wang Saku (pocket money book), a tool to educate and assist school children to manage their pocket money and to take control of their finances 14 million copies distributed Schools adopted by financial institutions (Fis) Activities carried out by Fis to enhance knowledge on banking and basic financial matters Participated by about 10,000 government-aided schools

Financial literacy elements to empower children to build, manage and protect personal wealth FL2: Financial Responsibi-lity and Decision Making FL1:Money, Source of income and Career Choice FL3:Money Manage-ment and Planning FE Elements FL4:Savings and investment FL6: Risk Manage-ment, Wealth Protection and Insurance FL5: Credit and Debt Management Definition of money, sources of income Factors affecting income eg demographic background, taxation, etc Types of payment instruments Income vs spending decision Make personal financial decisions Usage of financial information Consumer protection law Definition of contracts Benefits of savings/investments including build wealth, achieve financial goals, financial well-being Definition and types Investments Risk and return concept Depositors and investors protection Identify needs and wants Set financial goals Create and record financial plan Alternatives and consequences of financial decisions Definition and types of credit instruments Responsible credit management Rights and responsibilities as borrowers Avoiding debt trap and address credit problem. Protection of identity Common types of risks and basic risk management Purpose and importance of insurance/takaful protection Types of non-insurance protection Complexity increased progressively according to school levels

Collective efforts are important Factors contributing to successful implementation of FE in schools Collective efforts are important Ministry of Education as implementor Establish and grow enabling infrastructure Central Bank plays leadership role Buy-in and understand importance of FE from young Leverage on revision of curriculum Support development and use of teaching aids Implement training of teachers Perseverance in pursuing FE in school Commitment- technical advice & financial support Develop FE standards Trainings/workshops Resource person in capacity building TOT for teachers Support development of teaching aids Teachers’ guides Text books Exposure to school heads School adoption programme FIs as technical experts for teachers’ reference point FE in co-curriculum Pocket money book to inculcate habits to keep financial records www.duitsaku.com an interactive online financial education tool BNM Money Museum and Art Gallery