The proposal for a National Financial Literacy Strategy for Germany was developed in the context of the Financial Literacy Initiative of the Federal Government of Germany and builds on quantitative and qualitative sources of evidence.
Strengthening Financial Literacy in Germany
Proposal for a National Financial Literacy Strategy
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1. Introduction
Copy link to 1. IntroductionThe Financial Literacy Initiative
Copy link to The Financial Literacy InitiativeThe development of the Strategy takes place in the context of the Financial Literacy Initiative (hereinafter “Initiative”).1 The Financial Literacy Initiative was launched at a national event in Berlin on 23 March 2023 by the Federal Ministry of Finance and the Federal Ministry of Education and Research.
The main objective of the Initiative is to improve the general understanding of financial issues across all individuals in Germany. Financial education is seen as an essential aspect of general education, which fosters equal opportunities, and is a prerequisite to economic independence for individuals.
The Financial Literacy Initiative includes three main pillars:
The National Financial Literacy Strategy, developed with the support of the OECD.
A Financial Literacy Platform,2 which is an online portal that brings together the financial education offer of various stakeholders in Germany, and will allow stakeholders to network and exchange information more effectively.
A fund to support research on financial literacy in Germany, to understand what works best for different target groups and develop targeted financial literacy initiatives.
The Initiative builds on the essential contribution of financial literacy stakeholders. Stakeholders from the public, private and not-for-profit sectors have contributed to the Initiative by responding to a stock taking survey and by actively participating in three important national events organised in the second half of 2023 and in 2024.
Stakeholder workshops
The first stakeholder workshop took place in Berlin on 20 October 2023 at the headquarters of the Federal Ministry of Finance. It was co-organised by the Federal Ministry of Finance, the Federal Ministry of Education and Research and the OECD. The workshop gathered over 100 financial literacy stakeholders from the public, private and not-for-profit sectors in Germany, as well as experts from the OECD Secretariat and the OECD International Network on Financial Education.
The workshop benefitted from the contributions of Federal Minister Lindner and Federal Minister Stark-Watzinger. It gathered stakeholders to discuss:
The need for a National Financial Literacy Strategy in Germany.
The preliminary results of the stocktaking survey undertaken by the OECD among German financial literacy stakeholders.
Case studies from the Federal Ministry of Finance of Austria, and the Financial Consumer Agency of Canada.
The priorities of the future National Financial Literacy Strategy in break-out sessions: its priority target groups and priority areas, as well as the expectations and possible contributions by public, private and not-for-profit stakeholders to the Strategy’s implementation.
A second stakeholder workshop took place on 21 June 2024 in Berlin and it offered stakeholders an opportunity to discuss how to support the implementation of the priority policy areas identified for the Strategy’s preparatory phase (OECD, 2024[1]).
National Conference “Finanzielle Bildung für das Leben”
The National Conference “Financial Education for Life” (Finanzielle Bildung für das Leben) was organised on 5-6 December 2023 in Berlin by the Federal Ministry of Education and Research together with the Federal Ministry of Finance. It gathered over 400 participants mostly from the education community, to discuss the importance of financial education and the future Strategy.
The two-day event benefitted from the contribution of international experts and of the OECD Secretariat. It focused on the relevance of financial education for Germany and in particular on:
financial education on the internet, between education, advice and information
consumer protection and financial education
financial education and lifelong learning
gender gaps in financial literacy
financial education, education for sustainable development and sustainable finance
international experiences in the development of national financial literacy strategies.
Sources of evidence
Copy link to Sources of evidenceThe project to design a National Financial Literacy Strategy for Germany builds on two main sources of evidence: quantitative evidence on financial literacy levels of the German population, and qualitative evidence provided by financial literacy stakeholders on their initiatives and on their views for the future Strategy. These sources of evidence have been complemented by desk research.
Quantitative evidence on financial literacy
The main quantitative evidence was collected by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) using the OECD/INFE Toolkit for Measuring Financial Literacy and Financial Inclusion 2022 (OECD, 2022[2]). Data was collected between 19 September and 18 October 2022 through Computer-Assisted Telephone Interviewing (CATI), on a sample of 1 000 adults representative of the German population (18-79).
BaFin shared the data with the OECD Secretariat, who analysed it for inclusion in the OECD/INFE 2023 International Survey of Adult Financial Literacy coordinated by the OECD International Network on Financial Education (OECD, 2023[3]) and for the purpose of this proposal.
The proposal also builds on quantitative sources of evidence on the financial literacy levels of adults and young people collected by German stakeholders (OECD, 2024[1]).
Qualitative evidence
Qualitative evidence was collected through the participation of stakeholders to the two workshops mentioned above, as well as through a national stocktaking survey. The survey was developed by the OECD in cooperation with the Federal Ministry of Finance and the Federal Ministry of Education and Research. It was distributed in July 2023 among financial literacy stakeholders from the public, private and not-for-profit sectors identified by the two Federal Ministries and with input from the OECD. The survey was also made available on the website of the Federal Ministry of Finance.
Some 122 stakeholders from the public, private and not-for-profit sectors (hereinafter referred to as “financial literacy stakeholders” or “stakeholders”) and 35 individuals responded to the survey, providing information on 177 financial literacy initiatives. Stakeholders active in the field of financial literacy who have not contributed to the survey are not included in the analysis.
The survey questionnaire was structured around the following sections:
the relevance of financial literacy policies and initiatives in Germany and the stakeholders’ expertise
financial literacy initiatives
data and research
existing forms of co-operation
stakeholders’ expectations concerning the National Financial Literacy Strategy.
Box 1.1. Definitions used in this proposal
Copy link to Box 1.1. Definitions used in this proposalFinancial education: The process by which financial consumers/investors improve their understanding of financial products, concepts and risks and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being.
Financial literacy: a combination of financial awareness, knowledge, skills, attitude and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being.
Digital financial literacy: a combination of knowledge, skills, attitudes and behaviours necessary for individuals to be aware of and safely use digital financial services and digital technologies with a view to contributing to their financial well-being.
Financial resilience: the ability of individuals or households to resist, cope and recover from negative financial shocks.
National strategy for financial literacy: a nationally co-ordinated approach to financial education that consists of an adapted framework or programme, which:
Recognises the importance of financial literacy - through legislation where appropriate - and agrees its scope at the national level, taking into account identified national needs and gaps.
Is coherent with other strategies fostering economic and social prosperity such as those focusing on financial inclusion and financial consumer protection.
Involves cooperation with relevant stakeholders as well as the identification of a national leader or co-ordinating body/council.
Includes the establishment of a roadmap to support the achievement of specific and predetermined objectives within a set period of time.
Provides guidance to be applied by individual programmes implemented under the national strategy in order to efficiently and appropriately contribute to the overall strategy.
Incorporates monitoring and evaluation to assess the progress of the strategy and propose improvements accordingly.
Financial well-being: financial well-being is the ultimate objective of financial literacy. Financial well-being takes into account both objective and subjective elements and makes reference to various aspects, such as:
Having control over one’s finances in terms of being able to pay bills on time, not having unmanageable debt and being able to make ends meet.
Having financial resilience against unexpected expenses and emergencies. Having savings, health insurance and good credit, and being able to rely on friends and family for financial assistance can increase consumers’ capacity to absorb a financial shock.
Being able to meet financial goals, such as paying off one’s student loans within a certain number of years or saving a particular amount towards one’s retirement, and being able to make choices that allow one to enjoy life, such as taking a vacation, enjoying a meal out now and then, going back to school to pursue an advanced degree, or working less to spend more time with family.
Sources: OECD (2020[4]), Recommendation of the Council on Financial Literacy, https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0461; OECD (2022[5]), OECD/INFE Guidance on Digital Delivery of Financial Education, https://www.oecd.org/en/publications/oecd-infe-guidance-on-digital-delivery-of-financial-education_c980ce2b-en.html; OECD (2020[6]) OECD/INFE 2020 International Survey of Adult Financial Literacy, https://www.oecd.org/en/publications/oecd-infe-2020-international-survey-of-adult-financial-literacy_145f5607-en.html; OECD (2021[7]), G20/OECD-INFE Report on Supporting Financial Resilience and Transformation through Digital Financial Literacy, https://www.oecd.org/en/publications/g20-oecd-infe-report-on-supporting-financial-resilience-and-transformation-through-digital-financial-literacy_0132c06d-en.html