Strengthening Financial Literacy in Germany

3. Vision and objectives

Definition of financial literacy

The Strategy adopts the globally recognised definition of financial literacy developed by the OECD and used also by the European Commission (European Union/OECD, 2022[8]; OECD, 2020[4]; 2017[9]). Financial literacy is defined as:

A combination of financial awareness, knowledge, skills, attitudes, and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being.

Vision and main objectives

Vision

It is proposed that that Strategy adopts the following vision:

All people living in Germany possess the financial awareness, knowledge, attitudes, and skills supporting effective financial behaviours with regards to their day-to-day money management, their long-term financial planning, and their capacity to cope with financial risks.

Higher levels of financial literacy contribute to equality of chances, to financial well-being, and to effective participation in the economy.

Timeline

It is suggested that the Strategy has a time horizon of 5 years from its adoption. The implementation of the Strategy can be supported by the development of annual action plans, which would offer details on the projects to be undertaken during the year and explain how these will address the priority areas identified by the Strategy.

Before the end of its implementation, the Strategy as well as its impact will be evaluated, as detailed in the section (see Monitoring and evaluating the Strategy).

Main objectives

The proposal for a Strategy identifies the following main objectives:

A. Increase the financial well-being of adults and young people in Germany by supporting sound financial behaviours, with a particular focus across the following policy areas:

• Saving for the long-term and for retirement

• Participating in capital markets

• Managing budgets, preventing over-indebtedness and using credit responsibly

• Strengthening digital financial competences and using digital financial services safely

• Meeting sustainability preferences

B. Encourage the design and implementation of evidence-based financial literacy initiatives.

C. Support further coordination among financial literacy stakeholders.