Strengthening Financial Literacy in Germany

5. Implementation roadmap

The implementation roadmap sets out a series of proposed measures that can be implemented to reach the Strategy’s main objectives. These proposed measures are intended to be implemented over the time frame of the Strategy (i.e. five years).

The implementation roadmap addresses the three main objectives of the Strategy:

• The first objective (Main Objective A) is increasing financial literacy with regard to the five policy areas identified in the Strategy’s preparatory phase. Some of the measures presented for each policy area address specific groups of the population.

• The second and third objectives (Main Objectives B and C) focus on the quality and effectiveness of financial literacy initiatives. In particular, the proposal lays out specific measures to encourage the design and implementation of evidence-based financial literacy initiatives (Main Objective B) and support further coordination among financial literacy stakeholders (Main Objective C).

The suggested measures under each objective should be implemented, or their implementation should be coordinated, by the leading authority or governing mechanism which Germany should establish to guide the implementation of the Strategy. These measures have been chosen according to financial literacy needs (OECD, 2024[1]) as well as feedback received from German financial literacy stakeholders.

The implementation roadmap should consider both short-term key performance indicators (KPIs) and possible long-term impact indicators. Their use will facilitate the Strategy’s implementation, as well as its monitoring and impact evaluation.

KPIs include whether a measure has been implemented as planned, the number of people reached and, as relevant, the number of stakeholders or partners cooperating in the design and delivery.

Long-term impact indicators measure changes over time which are not immediate outputs of the Strategy, such as the participation rate of retail investors. While it would be difficult to attribute changes in the long-term impact indicators exclusively to the implementation of the Strategy, as these can be influenced by the general macroeconomic context or other government measures, long-term impact indicators can nonetheless be used to measure changes in outcomes that the Strategy seeks to influence.

Increase the financial well-being of adults and young people in Germany by supporting sound financial decisions

The implementation of the Strategy should support individuals and households across different policy areas1, by offering them access to financial literacy initiatives adapted to their needs, with the ultimate objective of increasing their financial well-being.

For each policy area the proposal suggests a set of measures to increase financial literacy. The measures are presented according to their main goal:

• Raising awareness.

• Supporting positive financial decisions.

• Finally, the proposal identifies basic financial literacy content for each policy area, to be incorporated in financial literacy initiatives in line with established competence frameworks (European Union/OECD, 2022[8]; 2023[10]; OECD, 2018[11]).

It is proposed that the Strategy addresses the whole population. However, the implementation of some of the suggested measures would be particularly relevant for some groups of the population. These groups have been identified considering their levels of financial literacy, digital financial literacy, financial resilience, and financial well-being, as well as the number of financial literacy initiatives currently tailored to their needs. When the measures presented in the proposal are addressed in particular at one or more groups, this is indicated.

The proposal identifies six groups of the population who would benefit from targeted financial literacy support across the five policy areas:

• Individuals with low levels of income and/or education (LI), such as the 8% of adults who struggle with over-indebtedness, as well as the unemployed, immigrants and refugees: they have on average low levels of financial literacy and have limited access to tailored financial education (OECD, 2024[1]).

• Women (W): on average they have lower financial knowledge and confidence and they save less than men (OECD, 2024[1]). As they often have more fragmented work careers than men, they tend to have lower retirement income. Despite this, few freely accessible financial education initiatives have a gender angle.

• Employees (WA): overall, only 53% of employees are confident they made a good job at planning their retirement, including just 40% of all working-age adults in East Germany. Few initiatives are carried out in the workplace (OECD, 2024[1]).

• Owners of micro, small and medium-sized enterprises (MSMEs) and the self-employed (ENTR): overall, only 62% of the self-employed are confident they made a good job at planning their retirement, including just 40% of all working-age adults in East Germany (OECD, 2024[1]). The offer of financial literacy initiatives for owners of MSMEs is very limited.

• Young people (Y): more evidence is needed on their financial literacy needs, and current provision of financial education in schools could be better coordinated. Future efforts can build on their eager-ness to learn about financial literacy: 81% of young people aged 14-24 would like to learn about retirement provision options in school, 87% about money management, and 73% about investment options (Bankenverband, 2021[12]).

• Elderly people (EP): they are the target of a relatively low number of financial literacy initiatives. They display low levels of trust towards the financial services provided by online banks and FinTechs (OECD, 2024[1]). They would benefit from resources to acquire the knowledge and skills to identify threats and protect their assets and their personal data online.

At the end of this section, Table 5.6 provides further details on how to address the financial literacy needs of these groups of the population, by identifying key financial actions faced by individuals in these groups, and by indicating the stakeholders who are best suited to deliver financial education to them.

1. Saving for the long-term and for retirement

Financial literacy can support individuals facing the challenges linked to saving for the long-term and planning their retirement, such as understanding the public pension system as well as occupational and private pensions, estimating their retirement income needs, and assessing risks related to private pensions and long-term investments (OECD, 2016[13]). Higher levels of financial literacy on saving for the long-term and retirement are particularly relevant in Germany given the responsibility of individuals to provide privately for their retirement to supplement public pensions (Bucher-Koenen and Lusardi, 2011[14]).

The evidence collected in Germany highlights different levels of participation in the pensions system according to socio-economic characteristics and the lack of confidence in retirement planning of a significant proportion of adults:

• While most adults in Germany actively save (88%), only 60% set long-term financial goals.

• Around 54% of adults in Germany plan to draw on a private pension plan (such as endowment insurance plans and Riester pensions) or an occupational pension (56% and 51% respectively), but those on low incomes are less likely than those on medium and high incomes to indicate that they will fund their retirement through occupational or private pensions: just 37% for those on low incomes vs. 60% for those on high incomes with regards to occupational pensions, and just 37% vs. 65% with regards to private pensions. It is important to note that financial literacy does play a role in whether individuals set money aside for retirement, irrespective of their income: adults in Germany with high financial literacy are 70% more likely to hold pensions products and 120% more likely to hold investment products than those with low financial literacy, after accounting for socio-demographic characteristics (OECD, 2024[1])

• Only 52% of adults in the working age population feel confident or very confident they have done a good job at planning their retirement. Confidence is higher for men (61% vs. 44% for women) and for those living in West Germany (55% vs. 40% in the East), it is positively associated with age and income, and it is higher among the self-employed than among employees (62% vs. 53%). Holding of retirement products in itself is not a sufficient condition to feel confident about retirement plans: just 62% of all adults who hold some kind of retirement product are confident about their retirement plans.

  Measures to support individuals in this area are presented in Table 5.1.

Table 5.1. Proposed measures to increase financial literacy on saving for the long-term and for retirement

Measures are categorised according to their main goal; when they apply particularly to one or more groups of the population this is indicated

Main goal	Raise awareness	Support positive financial decisions
Measure	Organise an annual event with the participation of public, private and not-for-profit stakeholders on retirement and pensions (“pension day”), to raise awareness of the importance of planning ahead for retirement and of the characteristics and opportunities offered by occupational and private pensions. Develop a communication campaign targeted to young people with role models to stress the importance of saving for the long-term and for retirement. (LI), (Y), (W) Communicate the importance of long-term saving and retirement through employers with a particular focus on private and occupational pension. This could be done in cooperation with federal and state-level employer associations. (WA) Communicate on the availability of the “digital pension overview”,2 which provides an individual overview of pension entitlements from all three pillars.	Design a financial literacy initiative for the workplace to provide employees with the knowledge and skills needed to plan ahead and choose pensions products, and which could be delivered in cooperation with federal and state-level employer associations. (OECD, 2022[15]). (WA) Design and deliver financial literacy initiatives on long-term saving for retirement for women to help them make effective decisions about retirement, taking into account the needs of women from different income brackets and the consequences of fragmented work careers on retirement income. Consider their dissemination in maternity wards. (W) Organise games and competitions to familiarise students or young people with the concept of planning ahead. (Y) Design and deliver financial literacy initiatives for low income households to encourage small-scale savings, explaining the possibility of receiving subsidies. (LI)
	Strengthen basic financial literacy
	Ensure that financial literacy initiatives focus on fostering long-term financial attitudes, explain the benefits of interest compounding, provide a general understanding of the German pension system, and explain where to seek information and advice with regards to retirement planning.

Note: Individuals with low levels of income and/or education (LI); Women (W); Employees (WA); Owners of micro small and medium-sized enterprises (ENTR); Young people (Y); Elderly people (EP).

Possible long-term impact indicators

• Increase in the % of adults who set long-term goals (baseline 60% in 2022).

• Increase in the % of adults in the working age population who feel confident they have done a good job at planning their retirement (baseline 52% in 2022).

• Increase in the % of the adult population who plan to fund their retirement through occupational and private pensions (baseline 51% and 56% respectively in 2022).

2. Participating in capital markets

Higher levels of financial literacy can help individuals in Germany to make informed decisions regarding long-term investments, to generate returns on savings and additional income, acquire assets, contribute to funding retirement, or accumulate wealth for future generations.

Evidence collected in Germany indicates relatively low but rising levels of retail investments in capital markets:

• German households allocate 12% of their financial wealth in stocks and shares, which is a relatively low share and is below the EU average; they allocate 13% in mutual funds (OECD, 2022[16]).

• The number of retail investors in Germany has increased in particular following the COVID-19 pandemic: in 2020 almost 3 million new investors started to invest in capital markets, with around one third of them under the age of 40 (Deutsches Aktieninstitut, 2020[17]). Some 18% of the population aged 14 and above (12.3 million people) hold shares, equity funds and exchange-traded funds (ETFs) (Deutsches Aktieninstitut, 2023[18]).

• Younger generations increasingly participate in capital markets. Investors under the age of 40 represent one third of all investors, compared to one fifth in 2013. Shareholders under the age of 30 rose by 40% in 2022 compared to the previous year (Jonas, Hoffmann and Binder-Tietz, 2022[19]). These young investors are more likely than older generations to follow recommendations from social media or influencers (12% vs. 4% for the whole population), from friends, family or acquaintances (41% vs. 24% for the whole population) and from product advertising (13% vs. 6% for the whole population).

Measures to support individuals in this area are presented in Table 5.2.

Table 5.2. Proposed measures to increase financial literacy on investments

Measures are categorised according to their main goal; when they apply particularly to one or more groups of the population this is indicated

Main goal	Raise awareness	Support positive financial decisions
Measure	Organise communication campaigns for the whole population to support a responsible investment culture. Use the campaign to address misconceptions preventing participation in capital markets. Organise a communication campaign featuring role models for women, to encourage informed participation in capital markets. (W) Organise communication campaigns on social media about investments targeted at young adults, in light of their increasing propensity to invest and of their reliance on advice found on social media. (Y)	Design and deliver financial literacy initiatives for existing and potential retail investors to educate on the opportunities and risks linked to the participation in retail capital markets, help them understand their risk appetite and choose the most appropriate investment products. (W) (WA) (Y) Design and deliver financial literacy initiatives for owners of micro, small and medium enterprises to improve their ability to use a broad range of available financial instruments, including alternative and digital ones. (ENTR) Design and deliver pedagogical resources which build on the power of gamification to familiarise students with the functioning of the stock markets and long-term investments (Y)
	Strengthen basic financial literacy
	Ensure that financial literacy initiatives address concepts such as risk and reward, time value of money, as well as a general understanding of the underlying functioning of capital markets, its opportunities and risks.

Note: Individuals with low levels of income and/or education (LI); Women (W); Employees (WA); Owners of micro small and medium-sized enterprises (ENTR); Young people (Y); Elderly people (EP).

Possible long-term impact indicators

• Increase in the % of adults who hold investment products (baseline 17.6% of adults in 2023).

• Increase in the % of women who hold investment products (baseline 13.2% of adults in 2023).

3. Managing budgets, preventing over-indebtedness and using credit responsibly

Use of credit by informed consumers within the context of an appropriate financial consumer protection framework can have positive effects on financial well-being and resilience, by allowing individuals to smooth consumption, cope with an income shortfall, or to acquire assets such as property (OECD, 2019[20]). However, the use of credit products can also lead to significant consumer detriment and unsustainable levels of debt, in particular among the most financially fragile sectors of the population (OECD, 2019[21]).

Evidence collected in Germany indicates that:

• Most adults in Germany report keeping track of their money (79%) and watching their personal financial affairs (86%). At the same time, a non-negligeable percentage of the population displays low levels of financial resilience: around 30% of adults report not having money left at the end of the month, and 25% could not cover living expenses for at least three months if they lost their main source of income. Budgeting is a behaviour to improve financial well-being and may encourage adults to behave in financially prudent ways.

• Over 80% of adults in Germany hold some form of credit products, and while this does not lead to unsustainable levels of debt for most people, around 8% of the population is over-indebted (Peters et al., 2023[22]), 6% report that that they have too much debt (OECD, 2024[1]) and almost 600 000 people sought help from debt advice centres (German Federal Statistical Office, 2023[23]).

• Financially squeezed consumers are particularly at risk of defaulting on their credit commitments: 14% of adults in Germany declare that income has not always covered living expenses in the previous 12 months. Among these, 30% borrowed from friends or family, 22% used authorised overdraft or line of credit, 16% used a credit card for a cash advance of to pay for bills or buy food. (OECD, 2023[3])

• Almost half (44%) of young people aged between 16 and 25 have used Buy Now, Pay Later products (SCHUFA, 2023[24]), and almost 30% of adults who sought the help of debt advice centres in 2022 owed money to online or mail order dealers, representing a 3% increase over the previous five years (German Federal Statistical Office, 2023[23]).

Measures to support individuals in this area are presented in Table 5.3

.

Table 5.3. Proposed measures to increase financial literacy on short-term money management and on credit

Measures are categorised according to their main goal; when they apply particularly to one or more groups of the population this is indicated

Main goal	Raise awareness	Support positive financial decisions
Measure	Promote existing initiatives at the state and municipal levels that support individuals with unsustainable levels of debt, and which include a financial literacy component. (LI) Provide social workers with financial education training, so that they will be able to address financial literacy topics as part of their responsibilities. (LI) Organise communication campaigns targeted at young people addressing the risks of an unsustainable use of credit products. (Y)	Develop financial literacy initiatives targeting individuals at risk of over-indebtedness, building on the expertise of stakeholders who are currently providing debt advice. (LI) Create digital tools to allow consumers to compare the features and cost of different credit products. Design digital tools such as budget planners to help individuals and households keep track of their spending as well as their credit commitments, which are free, without commercial purposes and protect the personal data of the users. Design basic financial literacy online courses for the unemployed, focused on effective budgeting , which could be made available on the KURSNET portal of the Federal Employment Agency. (LI)
	Strengthen basic financial literacy
	Ensure that financial literacy initiatives nurture sound financial behaviours such as short- to long term budget planning (weekly, monthly, annually), understanding and comparing credit contracts, and knowing where to find advice in the event of a negative financial shock.

Note: Individuals with low levels of income and/or education (LI); Women (W); Employees (WA); Owners of micro small and medium-sized enterprises (ENTR); Young people (Y); Elderly people (EP).

Possible long-term impact indicators

• Increase in the % of adults who budget especially among vulnerable audiences (baseline 79% in 2022).

• Reduction of the % of adults who report they have too much debt (baseline 6% in 2022).

4. Strengthening digital financial competences and using digital financial services safely

New digital financial products and services may affect the way in which consumers make financial decisions and product choices (OECD, 2020[4]). While the digitalisation of financial products and services can bring benefits, it also contributes to the complexity of retail finance, in particular for the most vulnerable, and it exposes them to new risks such as digital financial exclusion, online scams and frauds or personal data hacks. These risks are compounded by low digital literacy and low digital financial literacy.

Evidence collected in Germany indicates that:

• Some 7% of adults in Germany have been victim of frauds and scams, and these are most likely to take place through digital means (OECD, 2024[1]).

• Some 42% manage often or very often financial products and services (including savings, investments credit and insurance) completely online. Almost 90% use online banking to carry out their everyday transactions and over 70% can set up and use their banking app intuitively and manage its security features (SCHUFA, 2023[25]). However almost 70% of adults have never enjoyed the opportunities offered by open banking and used digital tools to have an overview of several personal financial accounts.

• Digital financial knowledge: only 43% of adults know that a digital financial contract does not require signature of a paper contract to be considered valid, and just 65% that crypto-currencies do not have the same legal tender as banknotes and coin.

• Digital financial behaviours: Just 43% of adults check if the provider is regulated before buying a financial product online, and just 20% regularly change the passwords on websites they use for online shopping and personal finance.

• Digital financial attitudes: only 56% of adults think that it is not safe to shop online using public Wi-Fi networks, and just half think it is important to read terms and conditions when buying something online.

• Moreover, despite the widespread use of digital technology to carry out financial transactions, only under half of adults in Germany feel very comfortable using digital financial services (European Commission, 2023[26]), and just 17% of adults in Germany trust the financial services provided by online banks and FinTechs (OECD, 2024[1]). The percentage is lower among women (13%) and seniors (8%). Even for young adults (18-29), who are the group of the population for whom trust is the highest, the percentage is only 35%.

Measures to support individuals are presented in Table 5.4.

Table 5.4. Proposed measures to increase digital financial literacy

Measures are categorised according to their main goal; when they apply particularly to one or more groups of the population this is indicated

Main goal	Raise awareness	Support positive financial decisions
Measure	Organise a communication campaign on cybersecurity and fraud prevention with regards to digital financial services, taking into account in particular the risks faced by young people and elderly people (EP), (Y) Organise a communication campaign on the opportunities offered by digital financial products amongst adults to reduce levels of mistrust.	Ensure that elements of digital financial literacy are addressed across all financial literacy initiatives implemented in Germany. Areas to focus on include understanding and using open banking and account aggregation tools, personal data protection. Extend the reach of existing initiatives on digital financial literacy addressed at senior citizens and plan in-person trainings on digital financial literacy in senior citizens' advice centres or meeting points. (EP)
	Strengthen basic financial literacy
	Ensure that financial literacy initiatives explain the use of the most common digital financial products and address the need to adopt basic security precautions in digital financial transactions.

Note: Individuals with low levels of income and/or education (LI); Women (W); Employees (WA); Owners of micro small and medium-sized enterprises (ENTR); Young people (Y); Elderly people (EP).

Possible long-term impact indicators

• Increase in the % of adults who feel confident or very confident using digital financial services (baseline 44% in 2022).

• Increase in the digital financial literacy score measured with the OECD/INFE methodology (baseline 64/100 in 2022).

• Decrease in the % of adults who have been victim of frauds and scams (baseline 7% in 2022).

5. Meeting sustainability preferences

The financial sector has a key role to play in facilitating the mitigation, adaptation, and transition of economies towards a more sustainable pathway. Sustainable finance has gained prominence for financial markets and among institutional investors. This has been accompanied by a rising interest in sustainable finance among financial consumers (OECD, 2023[27]) In Germany, over 80% of adults are concerned by the climate crisis and perceive a very strong or strong impact of climate change in Germany in the form of persistent dry spells, low water levels and droughts (BMUV and UBA, 2023[28]).

Evidence collected in Germany shows high levels of awareness but low levels of holding of sustainable financial products (OECD, 2024[1]):

• Sustainable financial products are known by 65% of the adult population, but just 15% of adults in Germany hold financial products labelled as sustainable.

• Around half (49%) of respondents strongly disagree or disagree with the statement “it is more important to invest in companies that are making a profit, rather than in companies that strive to minimise the impact of the environment”.

Measures to support individuals in this area are presented in Table 5.5.

Table 5.5. Proposed measures to increase financial literacy on sustainable finance

Measures are categorised according to their main goal; when they apply particularly to one or more groups of the population this is indicated

Main goal	Raise awareness	Support positive financial decisions
Measure	Organise a communication campaign on sustainable finance, which explains the impact that individual financial decisions can have on the environment as well as characteristics and risks of sustainable financial products.	Design and deliver initiatives for relevant target groups (such as young people or retail investors) which cover sustainable financial products and related risks such as greenwashing, as well as financial planning for climate-related risks (OECD, 2023[27]). (WA) (Y) Design pedagogic materials that explain key terms relating to sustainable finance and which can be made freely available online.
	Strengthen basic financial literacy
	Ensure that financial literacy initiatives mention the link between individual financial decisions and the environment and the existence of sustainable financial products.

Note: Individuals with low levels of income and/or education (LI); Women (W); Employees (WA); Owners of micro small and medium-sized enterprises (ENTR); Young people (Y); Elderly people (EP).

Possible long-term impact indicators

• Increase in the % of adults who hold sustainable financial products (baseline 15% in 2022).

• Increase in the % of adults who are aware of sustainable financial products (baseline 65% in 2022).

Box 5.1. Helping consumers navigate digital financial education offers and strengthening the digital delivery of financial education

The digital delivery of financial education is the most common approach chosen by financial literacy stakeholders in Germany. As of 2023, around 85% of initiatives were delivered through digital media or included a digital component. These initiatives encompass websites, e-learning platforms, mobile applications, videos, social media, or podcasts.

For consumers, the digital delivery of financial education can bring several benefits: it can facilitate learning opportunities, support the reinforcement of financial literacy core competencies as well as incentivise positive financial behaviours (OECD, 2021[29]; 2022[5]). However, individuals might not be aware of where to find learning resources adapted to their needs or might not possess the adequate digital skills or tools to use digital financial education resources.

As part of the Financial Literacy Initiative, the Federal Ministry of Finance has created an online financial literacy platform (www.mitgeldundverstand.de) which currently links to the financial literacy initiatives of public authorities in Germany. This website should service as a reference point for consumers in Germany when it comes to money matters. As part of the Strategy’s implementation, the website is expected to expand its offer and increasingly link to the initiatives of private and not-for-profit stakeholders.

The initiatives should meet quality criteria to be defined as part of the Strategy’s implementation, to ensure that consumers find financial literacy content that is up to date, relevant, and of high quality.

Addressing the financial literacy needs of different groups of the population

While the Strategy addresses the financial literacy needs of all people living in Germany, it also identifies groups of the population who would benefit from targeted financial literacy support. This support could focus on key financial actions which are particularly relevant (but not exclusive) to different groups of the population.

Table 5.6 presents these actions and highlights which stakeholders are best suited to address the needs of different groups of the population.

Table 5.6. Financial actions that would benefit from targeted financial education for different groups of the population, and stakeholders best suited to address their financial literacy needs

Groups of the population	Financial actions which would benefit from targeted financial education	Stakeholders best suited to address each group
Individuals with low levels of income and/or education (LI)	Saving for the long-term and for retirement Setting up a savings plan with small contributions Managing budgets, preventing over-indebtedness and using credit responsibly Draw and keep short- and long-term budget plan under difficult financial conditions Absorbing negative financial shocks (unemployment, sickness) Taking up a loan	Social workers, debt advice centres, municipal social service, professional training or qualification programs
Women (W)	Saving for the long-term and for retirement Plan for retirement taking into account variations in employment status Participating in capital markets Making first investment in capital markets	Employers, community centres (e.g. maternity wards), role models, vocational information centre of the Employment Agency (Berufinformationszentren, BiZ)
Working adults (employees) (WA)	Saving for the long-term and for retirement Contributing to a workplace pension and understanding its tax implications Participating in capital markets Making long-term investment plans based on individual income levels and risk appetite	Employers, industry associations, trade unions, adult education centres
Working adults (owners of micro small and medium-sized enterprises (MSMEs) and the self-employed) (ENTR)	Saving for the long-term and for retirement / Participating in capital markets Making effective choices with regards to planning for retirement Choosing appropriate sources of financing for the business Making long-term plans to run and grow a business Managing budgets, preventing over-indebtedness and using credit responsibly Separating business and personal finances	Trade offices (Gewerbeämter), German Chamber of Commerce and Industry, (DIHK), business development banks, debt advice centres
Young people (Y)	Saving for the long-term and for retirement / Participating in capital markets Making first saving and investment decisions based on individual risk profile Knowing where to go for advice and understanding the difference between financial marketing and advice Managing budgets, preventing over-indebtedness and using credit responsibly Understanding the possible risks associated with consumer credit and Buy Now, Pay later products Strengthening digital financial competences and using digital financial services safely Effectively managing their finances online while protecting personal data and being resilient to digital scams and frauds, especially with regard to risks linked to social media	Schools, universities, social media / finfluencers, employers, public authorities (first contact), parents, guidance councilors and social workers in youth centres
Elderly people (EP)	Strengthening digital financial competences and using digital financial services safely Effectively managing their finances online while protecting personal data and being resilient to digital scams and frauds	Community centres, traditional mass media (television, newspapers), day care for elderly, police

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

The design of financial literacy initiatives should build on a systematic use of research and quantitative evidence, in particular of financial literacy levels. The use of evidence in the design phase should be complemented by adequate monitoring3 and evaluation4 processes, to understand if an initiative is meetings its objectives and if resources, both human and financial, are used efficiently. This contributes to increase the effectiveness of financial literacy initiatives (see also Box 5.2).

Evidence collected in Germany through a survey among financial literacy stakeholders (OECD, 2024[1]) indicate that:

• 67% of initiatives currently implemented in Germany have been designed taking data and research (on financial literacy and beyond) into account.

• Less than 70% of initiatives include monitoring and just around 40% of initiatives use Key Performance Indicators (KPIs).

• Very few stakeholders have carried out rigorous quantitative evaluations, for reasons which include lack of financial or human resources, or personal data protection concerns.

Measures which would support the design and implementation of evidence-based financial literacy initiatives include:

• Collect evidence on financial literacy levels of young people in cooperation with academia and consider the participation of all states in the 2029 PISA Financial Literacy Assessment.

• Continue to collect evidence on financial literacy of adults.

• Encourage the use (and possible adaptation) of EU competence frameworks to design financial literacy programmes (European Union/OECD, 2022[8]; 2023[10]).5

• Promote the sharing of information about the results of quantitative financial literacy measurements and foster collaboration between researchers and policy makers, and across researchers.

• Support the adoption of a common monitoring and evaluation approach by all financial literacy stakeholders, which would include the collection of standardised information on participants to financial literacy initiatives.

• Socialise among financial literacy stakeholders the evidence gathered thanks to the fund established by the Federal Ministry of Education and Research, and more generally encourage stakeholders to share results from monitoring and evaluating their activities.

• Organise events to train financial literacy stakeholders on monitoring and impact evaluation approaches.

• Encourage the collaboration between stakeholders implementing financial literacy initiatives, academia and researchers in the design and impact evaluation of financial literacy initiatives.

Key Performance Indicators

• Number of states participating in the PISA Financial Literacy assessment option in 2029.

• Increase in the % of initiatives which are designed building on evidence (baseline 67% in 2023).

• Increase in the number of initiatives which are designed using competence frameworks (baseline less than 5 in 2023).

• Increase in the number of initiatives which undergo rigorous evaluation (baseline less than 5 in 2023).

Box 5.2. Strengthening the effective delivery of financial education

Financial literacy stakeholders should ensure that their initiatives are delivered effectively, in ways which are more likely to have positive effects on the financial well-being of the groups of the population they address (OECD, 2020[4]). Among the approaches that support effective delivery of financial education are:

• Base programme design on well-defined core competencies frameworks covering knowledge, attitudes, skills and behaviour, and developing content adapted to the current competencies, experience, literacy, numeracy of the target group.

• Pilot initiatives, pedagogical resources and delivery methods on a small scale before rolling out more widely.

• Consider key teachable moments related to important financial decisions, for example, weddings, pregnancies, new jobs, moving home, divorce, retirement, unemployment.

• Design initiatives that allow participants to experience what they are learning, emphasise the relevance of financial literacy and frame its acquisition in a positive fashion.

• Deliver initiatives of sufficient length and quality, and which take place in environments conducive to learning such as schools, adult education centres or the workplace.

• Make appropriate use of trained trainers and trusted partners, with adequate familiarity with the group of the population addressed.

Support further co-ordination among financial literacy stakeholders

The OECD Recommendation on Financial Literacy (OECD, 2020[4]) invites governments to take effective measures to facilitate coordination, and avoid duplication of efforts, inefficient use of resources, and ensure that all relevant target groups have access to financial literacy.

Currently there are no coordination mechanisms between federal and state authorities in Germany with regards to financial literacy policies and initiatives.

• The establishment of a formal and sustained dialogue between relevant federal and state authorities, including collectively through the Standing Conference of the Ministers of Education and Cultural Affairs of the Länder in the Federal Republic of Germany (Ständigen Konferenz der Kultusminister der Länder in der Bundesrepublik Deutschland, KMK) would be beneficial. Such dialogue should build on the exclusive responsibility over education of the states and would facilitate the implementation of financial literacy initiatives particularly in the school context (KMK, 2013[30]).

Around 70% of financial literacy stakeholders report some kind of collaboration with other public, private and not-for-profit stakeholders. In around 40% of cases, this is a formalised collaboration, through established partnerships.

• The implementation of the Strategy should further facilitate a permanent dialogue among all stakeholders and encourage the exchange of knowledge and information:

  • Among financial literacy stakeholders working on similar topics or with similar target groups, through regular networking events, to facilitate collaboration when possible. Priority should be given to stakeholders working with the most vulnerable groups (such as over-indebted individuals, migrants).

  • Between representatives of financial services providers and consumer advocates, to identify good practices in financial education in areas such as investments or credit.

  • Among public stakeholders working on education for sustainability, such as the Sustainable Finance Advisory Committee of the German Federal Government, BaFin, and the KMK and its agenda on Education for Sustainable Development, to inform the content of financial literacy initiatives on sustainability.

Almost 100 financial literacy initiatives in Germany are delivered in a school setting, mostly targeting students in secondary schools, both gymnasiums (grades 5-13) and vocational schools. Coordination mechanisms could be put in place to ensure that stakeholders do not target primarily the same kind of schools or grades, that all relevant financial literacy competences are addressed, and that teachers are supported in their delivery of financial literacy content. Measures include:

• Organise events and other channels to discuss and share information about the implementation of financial literacy initiatives in schools, to sustain a permanent dialogue among financial literacy stakeholders and relevant representatives of the education community.

• Support and strengthen the teaching of financial literacy in schools by centralising the pedagogical resources available for teachers in a single portal.

• Design a financial literacy training programme for teachers, flexible enough to be delivered across all German states.

Key Performance Indicators

• Implementation of a financial literacy training for teachers available across all states.

• Creation of a single portal hosting pedagogical resources for teachers.

• Organisation of regular events for financial literacy stakeholders.

• Establishment of a regular dialogue between federal and state authorities.

Possible long-term impact indicators

• Increase in the number of students who receive financial education in German schools.

• Evidence of greater coordination among stakeholders, such as establishment of new partnerships, collaboration in the implementation of initiatives, or sharing of resources.

Notes

← 1.  For additional details on each of the five policy areas, please see the Strategy’s preparatory study (OECD, 2024[1])

← 2.  https://www.rentenuebersicht.de/

← 3.  Monitoring refers to a set of activities that track the implementation of an initiative, including through gathering specific Key Performance Indicators (KPIs) of the initiative at regular time intervals, such as the number of individuals the initiative reaches, the resources used, etc. In the case of digital initiatives, such data gathering/monitoring can be automated to track enrolment, dropouts, contact hours, etc.

← 4.  Evaluation generally refers to the process of assessing whether the initiative is reaching the set “objectives” and “expected outcomes”. Typically, the evaluation is less frequent or regular than monitoring efforts, but it builds on data gathered through the monitoring process and other quantitative and qualitative inputs, to provide a detailed analysis of the impact of the initiative on the end beneficiary.

← 5.  For a detailed explanation of the content of these frameworks and their objectives, please see Box 4.1 in OECD (2024), Financial literacy in Germany: Supporting financial resilience and well-being, OECD Business and Finance Policy Papers, https://doi.org/10.1787/bf84ff64-en