Financial Capability
The Scottish Government wants to tackle the causes of poverty rather than only treating its symptoms. For financial inclusion, this means ensuring that people have the skills and understanding to make the best use of financial products. We do this by supporting financial education.
In schools, the Curriculum for Excellence aims to provide a seamless education from age 3 to 18 and is taking a fresh look at what is being taught in schools, to ensure that all young people can be successful learners, effective contributors, confident individuals and responsible citizens. In the new draft outcomes and experiences for Social Studies pupils will be taught how to manage budgets and to reconcile that they may not always be able to afford things that they want. These outcomes sit alongside draft guidance for teachers on promoting numeracy across the curriculum, which among other things, is intended to help pupils manage money and plan their finances.
Young Scot provides a free web-based and telephone service, targeting all 16-26 year olds, which gives information about money and finance related topics, and signposts young people to specialists for more in depth advice and counselling.
In 2005, the Scottish Government funded pilot projects with Citizens Advice Scotland and 6 member bureaux to deliver financial education to a range of vulnerable groups and with the Greater Easterhouse Money Advice Partnership, to provide financial education in a community setting.
The Financial Services Implementation Group established a Financial Capability Delivery Group, which has mapped the wide range of financial education projects being undertaken throughout Scotland.
Learning Connections undertook a survey of financial learning outwith schools and has commissioned case studies to help develop good practice.
The Financial Services Authority (FSA) leads the UK's National Strategy for Financial Capability. In 2006, the FSA published results from its Survey of Financial Capability, which established a baseline for the financial capability of the UK population on 5 dimensions - being able to manage money; keeping track of your finances; planning ahead; choosing financial products; and staying informed about financial matters. This identified low levels of financial capability across the UK, especially among young people. The FSA has supported a range of projects and resources to improve financial capability, including the moneymadeclear website.
In 2007, the UK Government set out its long-term approach to financial capability in Financial Capability: the Government's Long Term Approach, and established an independent feasibility study, led by Otto Thoresen, Chief Executive of AEGON UK, to research and design a national approach to generic financial advice (subsequently referred to as 'money guidance'). The aim is to ensure greater access to high quality affordable financial advice for those most vulnerable to the consequences of poor financial decision-making. The study's final report was published in March 2008.