Czech National Bank and Ministry of Finance deepen cooperation in enhancing financial literacy

The Czech National Bank (CNB) and the Ministry of Finance (MF) have decided to deepen their cooperation in enhancing the financial literacy of the Czech public. Evaluating adult financial literacy in terms of knowledge, skills and values is the primary objective of the joint project Measuring Adult Financial Literacy in the Czech Republic in 2010, which the two institutions presented to the public today.

The project to measure financial literacy has its roots in the CNB and MF’s long-running cooperation in the interdepartmental Working Group for Financial Education and is a key component of the National Financial Education Strategy approved by the government in May this year. The results of the measurement will be published in November.

“The global financial crisis has demonstrated where imperfect knowledge of products can lead in the now almost fully virtual world of finance. It is not enough to prohibit and punish unfair practices, you have to teach people how to defend themselves,” said Member of the CNB Bank Board Eva Zamrazilová.

“I regard financial education as an important element of consumer protection on the financial market. In order to focus our efforts in the right direction, one of the first steps the state must take is to identify areas where it is important to enhance public awareness,” said Minister of Finance Miroslav Kalousek.

The Czech National Bank has been actively promoting financial education for many years. In 2008, when the CNB was given responsibility for supervision in the area of consumer protection, it distributed more than 4,000 copies of the textbook Financial and Economic Literacy (written by M. Skořepa and E. Skořepová, preface by E. Zamrazilová, published by Scientia) free of charge to primary schools and academic secondary schools. From October 2008 to the end of 2009, a total of 31 seminars on teaching financial literacy took place in various regions of the Czech Republic, attended by 730 teachers.

The Ministry of Finance is responsible for financial market regulation and for consumer protection on the financial market. In 2005 it initiated the first steps towards creating a comprehensive system of financial education in the Czech Republic. Together with the Ministry of Education, Youth and Sports, it prepared the “Financial Literacy Standards” in 2006, which have been gradually implemented in school curricula since 2007. In 2010 it prepared the National Financial Education Strategy together with the CNB and the Ministry of Education.