Finantial literacy education - ECORL Project

1. FINANCIAL LITERACY
EDUCATION

2. Topics
 What is financial education?
 Investment decision criteria
 Investment instruments
 Financial instruments

3. WHAT IS FINANCIAL EDUCATION?

4. Financial education is the process
by which consumers improve understanding of
financial products, concepts and risk OECD
(2005)

5. Through information, instructions and/or
objective advice, consumers develop skills
and confidence

6.  Become more aware of
(financial) risks and opportunities
 Make informed choiches
 Know where to go for help
 Take other effective actions
to improve financial well-being

7. What are the aims of financial education for
consumers?
Review question

8. INVESTMENT DECISION
CRITERIA

9. Risk involves the possibility an
investment's actual return will differ from
the expected return, including the
possibility of losing some or all the
original investment

10.  Systematic Risk is the uncertainty inherent
to the entire national and international
market
 Specific Risk is linked to the company or to
a small group of companies

11.  A return (yield) is the gain or loss of an
investment in a specific period including
incomes and capital gain
 More risk and more potential for higher
incomes, capital gains and losses

12. Can you define the concept and the relationship
between risk and return in financial investments?
Review question

13. INVESTMENT INSTRUMENTS

14.  Stock is a part of the company's asset
and earnings
 Bond (corporate or government) is a
debt investment

15.  Savings Account
 Certificates of Deposit (Cds)
 Mutual funds

16. What is the difference between bond
and stocks?
Review question

17. FINANCIAL INSTRUMENTS

18.  Interest Rate
 Personal loan
 Mortgage loan
 Revolving credit

19. What are the main forms for private
financing?
Review question

20. Summary questions

21.  What are the aims of financial education for
consumers?
 Can you define the concept and the
relationship between risk and return in
financial investments?

22.  What is the difference between bond and
stocks?
 What are the main forms for private
financing?

23. FINANCIAL LITERACY
EDUCATION