1. 1

2. Economic Classes Income (R$)Population 2009 (mi) Population 2009-2003 ∆ (mi) Class A6,329 -9.603. 25 Class B4,854 – 6,32910.372.39 Class C1,126 – 4,85494.9329.06 Class D705 - 1,12644.45- 2.43 Class E0 – 70528.84- 20.48 2 Changes in income distribution The “new” middle class: 94,9 mi (50% of the population) Source: Fundação Getúlio Vargas (FGV). The New Middle Class: The Bright Side of the Poor (http://cps.fgv.br/en/nmc)

3. The case for a National Strategy 3 1. Changes in income distribution are likely to persist and will have impacts on each market (newcomers). 2. This goes beyond the role of one sole agency. 3. Financial Education should be included in a general effort (partnerships) to increase the financial capability of the population. 4. A National Strategy may provide the framework to integrate programs: sectoral (investments, credit, pensions etc.) and cross-sectoral. 5. Financial literacy (personal finance) in large scale: target children and young people at school. 6. That will not be efficiently reached by a sectoral program alone (e.g. investor education).

4. Timeline – National Strategy on Financial Education ä 2006: Creation of COREMEC (Supervisory and Regulatory Committee of Financial Systems, Capital Markets, Private Insurance and Social Welfare ) ä 2007: COREMEC working group (coordinated by CVM) to draft a National Strategy on FE with partnerships ä 2009: draft of the National Strategy ä Jan/10 : launch of pilot project in schools (secondary education) ä Dec/10: National Strategy approved ä Apr/10: members of the National Committee for Financial Education appointed 4

5. Partnerships ä National Inventory of FE projects (70) ä National Survey on Financial Literacy ä Website: www.vidaedinheiro.gov.br ä Pedagogical support group: financial + educational sector ä Pilot project on schools (coordinated by CVM + Central Bank, Private Insurance Regulator and Pension Funds Regulator) 5

6. National Strategy for Financial Education 6 CONEF (GAP) Schools Other Projects Decree # 7.397 of 2010 Sectorial Programs Crossectorial Programs FE in SchoolsOther Association

7. Financial Education in Schools 7 global Social Level Individual Level T IME D IMENSION Future Present Past S PACE D IMENSION

8. v Responsible Consumption and Saving v Knowledge and tools for independent decision- making v Social awareness ä Space-related Goals Financial Education in Schools Goals

9. ä Time-related Goals v Short-, mid- and long-term planning and decision-making v Prevention v Enable social mobility 9 Financial Education in Schools Goals

10. Financial planning S08 Assessing prevention plans S09 Overcoming financial difficulties S10 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 Space-related Time-related Skills Web

11. 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 Teaching Material

20. States TREATMENT GROUP CONTROL GROUP MunicipalitiesSchoolsStudents MunicipalitiesSchoolsStudents CE24622012 23601959 DF1321105 1321112 MG614360 1015 371 RJ421343513 471363752 SP141805741 341926037 TO1217505 1317514 TOTAL9943913.236 12845213.745 Financial Education in Schools Impact Evaluation in 2010

21. CHALLENGE: multiple actors 5,560 municipalities (primary schools) 5,560 municipalities (primary schools) 27 states (secondary schools and primary) 27 states (secondary schools and primary) Union (universities) Union (universities) OPPORTUNITY: Educational Support Group: 1 representative for the 27 states 1 representative for the 27 states 1 represent. for the municipalities 1 represent. for the municipalities 1 represent. Ministry of Education 1 represent. Ministry of Education Financial regulators Financial regulators SROs + associations etc. SROs + associations etc. Resulting pilot project 900 schools 21 Financial Education in Schools Impact Evaluation in 2010 Challenge in a Federation:

22. Impact Evaluation Survey Instruments (baseline: AUG10 / follow-up: DEC10/next: NOV11) ä 1. Financial Literacy Test: designed to measure financial literacy (competences and abilities) ä 2. Behavior and attitudinal questionnaires to students: v Socioeconomic information; v Financial decision-making and behavior (familiarity, use and access to financial products; savings and investments behavior); v Attitudes towards the financial world (propensity to save, consumption autonomy) ä 3. Parent’s questionnaire: socioeconomic data of the student’s household, financial profile and behavior of student’s family, knowledge and access to financial products. Next Steps ä Parent’s workshop (1 st semester 2011): in treatment schools ä Mai 9-10, International Workshop (Rio de Janeiro): preliminary results from financial education in schools project. 22

23. Treatment Group: 24 municipalities 62 schools 2.012 students Ceará

24. 32 schools 1.105 students Brasília

25. 6 municipalities 14 schools 360 students State of Minas Gerais

26. 42 municipalities 134 schools 3.513 students Rio de Janeiro

27. 14 municipalities 180 schools 5.741 students São Paulo

28. 12 municipalities 17 schools 505 students Tocantins

29. 29 Thank you! National Strategy: www.vidaedinheiro.gov.br