The OECD Recommendation on Financial Literacy encourages governments to establish and implement national strategies on financial literacy. These strategies recognise the importance of developing financial literacy coherently with other policies that foster economic and social prosperity and provide a framework for cooperation among all relevant stakeholders. Financial literacy is one of several inter-connected policies designed to ultimately promote the financial well-being of consumers, alongside financial consumer protection and financial inclusion.
Germany’s Federal Ministry of Finance and Federal Ministry of Education and Research have sought the support of the OECD to develop this proposal for a National Financial Literacy Strategy (hereinafter “Strategy”). By adopting this proposal, Germany will join all other G20 countries, the 35 OECD Member countries and most European Union Member States that are currently implementing national strategies to support the financial well-being of their citizens.
In Germany, the design of a National Financial Literacy Strategy takes place in the context of the Financial Literacy Initiative launched by the Federal Ministry of Finance and the Federal Ministry of Education and Research in March 2023. This initiative recognises the need to improve the general understanding of financial issues across all generations in Germany and sees financial literacy as a powerful tool to foster equal opportunities. Higher levels of financial literacy would promote the participation of individuals and households in capital markets, support them in planning for retirement and help avoid old-age poverty. They would also be a pre-requisite for self-determination and participation in the economy.
This proposal was prepared by Andrea Grifoni under the supervision of Chiara Monticone and oversight by Miles Larbey, Head of the Financial Consumer Protection, Education and Inclusion Unit, and Serdar Çelik, Head of the Capital Markets and Financial Institutions Division, within the OECD Directorate for Financial and Enterprise Affairs.
The proposal benefitted considerably from the support, input and review of the Federal Ministry of Finance, the Federal Ministry of Education and Research, the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the Deutsche Bundesbank.