Building Financial Literacy Skills through Entrepreneurship Richard Bernhard Kenan Institute Asia OECD Conference Bali, Indonesia 21-22 October 2008
Agenda Financial literacy situation for Thai youth Challenges in instilling financial literacy in youth Rationale for financial literacy and entrepreneurship Money Wise Program overview Program results Recommendations
Financial Literacy Situation for Thai Youth No financial literacy (FL) topics in standard curriculum Various FL programs outside curriculum Moderate knowledge of FL in Bangkok and limited knowledge outside Bangkok Consumer credit has been easily obtained Consumerism promoted as engine of growth High levels of credit card debt beginning after high school Living-for-today attitude still prevails
Challenges to Financial Literacy Education Competing education needs including math, science and English focused on entrance exams Difficulty integrating FL topics into other subjects in standard curriculum Limited knowledge of teachers in FL and economic basics - math skills generally poor Non-formal FL education difficult to scale and maintain quality Thai s culture is not driven in result-oriented and independent manner like the West Non-school hours available limited FL not considered an urgent need
Rationale for teaching financial literacy through entrepreneurship 97% of all businesses in Thailand are SMEs, most small entrepreneurial ventures Entrepreneurs often use the personal resources for personal and business expenses Entrepreneurship is an interesting and practical vehicle for teaching FL Some realization that building entrepreneurship skills can help address youth development and poverty reduction issues No FL or entrepreneurship skills building within Thai s formal and informal education Basic personal financial and firm level financial management have many of the some concepts: building assets, setting goals, overcoming financial obstacles, communicating about money, budgeting, credit, role of financial institutions, ethical behavior Entrepreneurship builds additional knowledge including start-up and operational costs, revenue sources, capital requirements and financing, developing a cash flow statement, accounting, etc.
Money Wise Young Entrepreneur Program Covers all topics of basic personal financial management Integrates REAL Entrepreneurship & Youth Leadership Components Simplified to fit different youth group (formal vs. informal education) Activity-based learning to equip participants with money management, business plan development and presentation skills Primary target focus are youth who: oexpect to work for a firm, self-employed, entrepreneurs ourban or rural
Financial Literacy Youth Target Groups Primary Education Secondary Education Higher Secondary Higher Education University Levels (undergraduate/graduate levels Community Colleges Vocational Education Community Level/Public Youth Groups
Money Wise Young Entrepreneur Financial Literacy Focus Curriculum Target beneficiaries Approach Institutionalization 1. Entrepreneurship 2. Leadership & Citizenship 1. Money Wise 2. REAL 1. Primary: Secondary Students 2. Secondary: 1.Interactive Workshops 2.Coaching 3.Biz Plan 1. MOE Schools 2. Student Clubs College mentors, teachers, private volunteers 4.Seed grants 5.M&E
Money Wise Partners - Financial Support - Employee volunteers Private Sector K.I.Asia - Project management - Curriculum development - Coaching - Monitoring and evaluation Schools (principals &teachers) College students Youth Clubs - Support club setting - Advise on implementation - Coaching and advising - Organizing students, planning events, etc. - Managing resources - System for replication
Program Development Cycle Develop Implement Replicate OCC Money Wise Curriculum Development, Pilot Testing & Fine Tuning Training, Business Plan implementation Lesson Learned, Project Model Fine-tuning Institutionalizing within curriculum, Students Club, Youth Club Developing a Financial Literacy Model Through Entrepreneurship
Training and Mentoring Master Trainers K.I.Asia & private volunteers Trainers and Mentors Teachers and College students Trainees High School Students
Project s Activities & Learning Levels Awareness Knowledge Motivation Skills or Behavior Change Training Business Plan Contest Using knowledge in real life Continued support and mentoring Peer network student clubs Resources Follow-up and evaluation
Money Wise Young Entrepreneurship Program Results Adapted and piloted new FL, entrepreneurship curriculum 165 high school students and 18 teachers in 9 schools trained 5 Young entrepreneur clubs established 100 students member of through clubs 5 business plans competitions completed and implemented 37 private sector and college mentors participated 85% student satisfaction rates
Recommendations and Conclusions Work to build FL into curriculum in schools & identify more flexible non-formal approach Youth ownership in programs important Teach FL through practical vehicles that provide realworld skills such as entrepreneurship Interactive, activity based-learning best Continuous mentoring after the training Tap private sector expertise Include tangible incentives such as competitions Identify structure for sustaining programming such as school clubs Obtain vital prinicipal, teacher and parent support Make programming fun!
Thank you Richard Bernhard Associate Executive Director Kenan Institute Asia Queen Sirikit National Convention Center 2nd Fl, Zone D, Room 201/2 60 New Ratchadapisek Road, Klongtoey, Bangkok 10110 THAILAND Tel. 662-229-3131; Fax. 662-229-3130 richardb@kiasia.org www.kiasia.org