COUNCIL OF MINISTERS OF THE REPUBLIC OF BELARUS NATIONAL BANK OF THE REPUBLIC OF BELARUS RESOLUTION

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1 COUNCIL OF MINISTERS OF THE REPUBLIC OF BELARUS NATIONAL BANK OF THE REPUBLIC OF BELARUS RESOLUTION January 17, 2013 No. 31/1 Minsk Joint Action Plan of Government Agencies and Financial Market Participants on Improving Financial Literacy of the Population of the Republic of Belarus for With a view to consolidating the activities of government authorities and financial market participants on improving financial literacy of the population of the Republic of Belarus, it is hereby resolved by the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus that: 1. The attached Joint Action Plan of Government Agencies and Financial Market Participants on Improving Financial Literacy of the Population of the Republic of Belarus for (hereinafter referred to as the Joint Action Plan) and the Actions under the Joint Action Plan of Government Agencies and Financial Market Participants on Improving Financial Literacy of the Population of the Republic of Belarus for (hereinafter referred to as the Actions under the Joint Action Plan) be adopted. 2. The Interagency Coordination Council on Improving Financial Literacy of the Population established in pursuance to Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No.1009/165 dated November 2, 2012 On the Interagency Coordination Council on Improving Financial Literacy of the Population (National Legal Internet Portal of the Republic of Belarus, November 7, 2012, 5/36447), shall monitor the implementation of the Actions under the Joint Action Plan stipulated in clause 1 hereof and, based on the monitoring results, produce recommendations and suggestions for the implementing agencies.

2 3. Republican government agencies and other government institutions reporting to the Government of the Republic of Belarus, regional executive committees, and Minsk City Executive Committee shall submit the reports on implementation of the Actions under the Joint Action Plan stipulated in clause 1 hereof to the National Bank of the Republic of Belarus by the 15th day of the month following the reporting quarter. 4. This Resolution shall enter into force on the date of its adoption. Prime Minister of the Republic of Belarus Chairperson of the Board of the National Bank of the Republic of Belarus M. Myasnikovich N. Ermakova

3 APPROVED Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 31/1 dated January 17, 2013 JOINT ACTION PLAN of Government Agencies and Financial Market Participants on Improving Financial Literacy of the Population of the Republic of Belarus for CHAPTER 1 GENERAL PROVISIONS Significant complication of the present-day financial system, acceleration of the globalization process, and emergence of a wide range of new complex financial products and services generate problems to people which they are not always prepared to settle. It is due to the fact that citizens often lack financial knowledge, skills of planning household budget, and ability to make rational decisions regarding the use of financial products and services. The last decade has been marked by the growing importance of improving financial literacy of the population in many countries. This is quite natural since appropriate level of financial literacy helps to raise the living standard of people, contributes to economic development, and increases public welfare as a whole. A financially literate person is one who has necessary knowledge, understanding, skills, and confidence to make the right financial decisions in practice and act according to specific circumstances. All citizens need basic knowledge and practical skills in the area of finance. They give children an idea of the value of money and lay the foundation for further development of budgeting and saving skills. Financial education can help young people to solve the problem of financing education or housing through financial planning, borrowing, and effective management of credit resources. Adults need financial education to manage their personal finances, optimize the savings/consumption ratio, assess risks, and make sound decisions when investing savings, as well as use various financial products and services and plan pensions. A literate consumer of financial services is better protected against financial fraud. Relevance of the problem of inadequate financial literacy of the population manifested itself when the global financial and economic crisis evolved and an excessive debt burden, lack of savings, and inability to take rational steps to protect own savings aggravated greatly.

4 2 Therefore, the issues of improving financial literacy should be addressed at the government level. In many countries the process of improving financial literacy started in the form of individual initiatives of public and private organizations which were aimed at assisting the citizens in the management of their personal finances and informing them about certain financial products and services. The process gradually evolved into national programs or strategies, as well as supranational initiatives of the EU, World Bank, OECD, and other international organizations. Taking into account strategic directions of development of the economy of the Republic of Belarus, financial literacy becomes a critical factor in achieving the targets and it should be assigned a high degree of significance. Thus, the Program of Social and Economic Development of the Republic of Belarus for approved by Decree of the President of the Republic of Belarus No. 136 dated April 11, 2011 (National Register of Legal Acts of the Republic of Belarus, 2011, No. 43, 1/12462) sets the priorities for social and economic development of the country, which include the growth of human potential, innovative, hi-tech and competitive economy, and entering the group of top 30 countries in terms of doing business. For the purpose of achieving these priorities, it is important to ensure the development of the financial market, which is able to generate the necessary financial capacity and provide the quality of financial services and products to meet the growing needs of the economy and the population. Appropriate level of financial literacy contributes to the improvement of citizens living standard, inflow of private investors resources to the economy of the country, development of competition in financial markets, strengthening financial stability, and raising social welfare. To achieve positive results in the efforts to improve financial literacy of the population of the Republic of Belarus, cooperation of a wide range of persons concerned representatives of the public, private, and nonprofit sectors is needed. As the global experience shows, no organization can improve financial literacy of citizens on its own. Consumers of financial services as well as the Government of the Republic of Belarus, the National Bank of the Republic of Belarus, and other government agencies and financial institutions are interested in improving financial literacy of the population. All of them can make their contribution to the development of the system of financial literacy in the Republic of Belarus. In order to consolidate the efforts designed to enhance the financial literacy of households, it is important now to develop a comprehensive document aimed at improving financial literacy of the population of the Republic of Belarus that will help to set priorities, avoid overlapping, establish sustainable partnership relations, and develop a national approach to attaining the planned objectives.

5 3 This Joint Action Plan was worked out with account of recommendations of the World Bank on the development and implementation of national strategies of financial education and financial education programs and is based on the experience of Russia, Kazakhstan, Poland, Great Britain, Brazil, Malaysia, and other countries that are engaged in the national programs designed to improve financial literacy of the population. For the purpose of achieving the objectives of the Joint Action Plan, it should be strongly supported at the state level and by all interested parties. This Joint Action Plan has been designed with account of the following national program documents: - Program of Social and Economic Development of the Republic of Belarus for approved by Decree of the President of the Republic of Belarus No. 136 dated April 11, 2011; - Strategy of Development of the Banking Sector of the Republic of Belarus for approved by Resolution of the Board of the National Bank of the Republic of Belarus No. 73 dated March 3, 2011; - Program of Development of the Securities Market of the Republic of Belarus for approved by Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 482/10 dated April 12, 2011 On the Program of Development of the Securities Market of the Republic of Belarus for (National Register of Legal Acts of the Republic of Belarus, 2011, No. 46, 5/33654); - Program of Development of the Insurance Activities for approved by Resolution of the Council of Ministers of the Republic of Belarus No. 631 dated May 20, 2011 On the Republican Program of Development of the Insurance Activities for (National Register of Legal Acts of the Republic of Belarus, 2011, No. 60, 5/33822); - Program of Development of Micro-financing in the Republic of Belarus for approved by Resolution of the Board of the National Bank of the Republic of Belarus and the Ministry of Finance of the Republic of Belarus No. 464/128 dated November 1, 2010; - Concept of Development of the Payment System of the Republic of Belarus for approved by Resolution of the Board of the National Bank of the Republic of Belarus No. 29 dated February 26, 2010; and - Program of Development of Transit Capacity of the Republic of Belarus for approved by Resolution of the Council of Ministers of the Republic of Belarus No dated December 20, 2010 (National Register of Legal Acts of the Republic of Belarus, 2010, No. 312, 5/33044).

6 4 CHAPTER 2 FEASIBILITY STUDY The current state and development prospects of the Belarusian economy are characterized, inter alia, by the following factors: - expanding consumer sector of the financial market and increasing diversity and complexity of financial products; - assuring a higher level of economic and social stability at the expense of growth of personal savings and their efficient use; and - high importance of individual financial decisions in assuring the welfare of the population and personal responsibility for them. At present, the level of consumption of financial services by the population of the Republic of Belarus with respect to a sufficiently developed, although irregularly distributed, financial infrastructure remains relatively low. According to the World Bank s studies, access to finance, as measured by the percentage of population having a valid bank account, remains at the level of 16%. Despite a relatively good physical accessibility of banks and a wide network of branches and offices (especially in urban areas), financial literacy of the population of the Republic of Belarus is at a low level, and the rates of growth of the use of financial services by the population are insignificant. Insufficient financial literacy of the population of the Republic of Belarus is one of the reasons for the lack of inflow of individual investors funds in the economy of the country, which brings about the problems related to the financial safety of citizens, threatens stability of the financial system, and, finally, adversely affects the growth rates of the population s welfare. Up to the present day, the data and materials that could be used as the basis for elaboration of the state policy and legislation related to the establishment of the national system of improving financial literacy have not been, practically, collected and analyzed in the Republic of Belarus. There are no special laws and regulations that would contribute to a large extent to improvement of financial literacy of the population. However, in recent years, the Government of the Republic of Belarus, National Bank, Ministry of Finance, Ministry of Economy, Ministry of Labor and Social Protection, as well as other government agencies, have been making certain efforts within their competence to improve the current situation. At present, the National Bank of the Republic of Belarus in concert with the International Alliance for Financial Inclusion are implementing the project Measuring the Access to Finance: Development of Evidence-based Policy of Access to Finance in Belarus. At the first stage of the project a preliminary study of availability of financial services for individuals and businesses was conducted through a republic-wide public opinion poll, performed by the Institute of Sociology of the National Academy of Sciences of Belarus (the

7 5 survey of a representative sample of 2,000 citizens of the Republic of Belarus). The study presents a detailed analysis of access to finance in the Republic of Belarus, which provided the data for the calculation of the overall index of financial inclusion - an effective tool for assessing the level of usage of financial services in the country, which will help to make a deeper analysis in the future when conducting a survey of a more wide group of citizens. The first results of the survey showed that there is a lot to be done to involve the population in the usage of financial services and improve their financial education. According to the survey, 14.1% of the population do not use financial services, 38.6% of the population are users of the basic level (i.e., they use 1or 2 financial products). Less than half of the population (47.2%) only are active or advanced users of financial services (i.e., they use 3 or more financial products). At the same time, the most often used services are mandatory services related to receiving salaries and compulsory insurance. The lending services are used by one third of the population only (33.7%). One fifth of the population (19%) places their savings in financial instruments. Speaking of sex and age, on average, men are more active users of financial services than women (50.9% of men and 44.1% of women use financial products actively and widely). Young people from 16 to 25 years (43.3% of active users) and respondents over 65 years old (15.6% of active users) use financial services least of all. The most active are the age groups of years and of years (63.2% and 58.4% of active and advanced users correspondingly). = = Residents of cities and urban type settlements are more active users of financial services, while residents of rural areas are least active. In rural areas the majority of residents (60.7%) do not use financial services or they are users of the basic level. In cities such users comprise less than a half (49.1%). The character of numerous inquiries of citizens to the government agencies also evidences the inadequate level of financial literacy of the population. Thus, during 2012 H1, the National Bank received 1,239 inquiries (an increase by 28% compared with the same period of 2011) of the citizens regarding the issues related to functioning of banks, lending, attracting deposits, functioning of the ATMs, self-service terminals, electronic money, as well as requesting the explanation of the procedures for performing foreign exchange transactions and refunding or compensating deposits of the Soviet period. An important problem related to the lack of knowledge and skills of citizens of the Republic of Belarus in the area of financial education is the absence of planning of personal or family budget. The majority of citizens do not save for any unforeseen reduction in income or unforeseen expenses,

8 6 despite the fact that such situations are likely to occur even in favorable periods of economic development of the country. As a result, a large number of people may face financial difficulties, even in the case of emergence of insufficient problems. An alarming feature which was revealed in the course of the study is the existence of two opposite approaches in the citizens perception of their level of financial literacy. There is a category of citizens the representatives of which consider that financial concepts are very complicated and assess their level of financial knowledge as inadequate. Citizens of the other category often overestimate their understanding of financial issues and, consequently, do not realize the extent of their ignorance. As a result, citizens of both categories take groundless financial decisions or become victims of financial abuse and fraudulent schemes. In recent years, several cases of fraud involving financially illiterate citizens have been observed in the Republic of Belarus, including as a result of activities of the so-called financial pyramid schemes. In this regard, counteraction against such structures should be based, primarily, on improving financial literacy of the population, dissemination of information about the risks of involvement in the pyramid schemes in the mass media and on the web sites of law-enforcement agencies. Improving of financial literacy will ensure financial security of the households, increase their welfare, and contribute to the stability of the country. Financial pyramids cause damage both to the citizens and to the state. The greatest damage is the significant reduction of the households confidence in the financial sector and its products. It is also important to note that insufficient financial literacy of citizens does not contribute to the development of certain financial instruments and financial market segments. Thus, improvement of financial literacy can increase the demand for products and services of the insurance sector and the securities market. As it is evidenced by the research data related to the assessment of the population s financial literacy, the level of information asymmetry between the consumers of financial products and services and their suppliers is very high. Even relatively simple financial products are often complicated for people who lack fundamentals of financial literacy. Citizens ignorance with regard to available, understandable and reliable channels of investing money deprives them of opportunities to receive profits from their property and money to the full extent. The low level of knowledge about adequate use of certain financial products, as well as about their rights as consumers of financial services, makes the issue of improving financial literacy even more important. Summarizing the above-mentioned one can formulate the most pressing problems, which result in the errors in investment and financial decisions of citizens (households):

9 7 - absence of family budget planning and family strategies of planning revenues and expenditures; - lack of understanding of key financial terms and mechanisms, and use of this information for grounded financial decisions; - inability of the population to make well-grounded decisions based on the analysis of all available information related to the use of particular products or services; spontaneity of financial decisions; - intention of the population to shift responsibility for their financial decisions to the state; - inability of people to assess risks in an adequate manner; - lack of awareness of citizens about investment opportunities and opportunities related to the conduct of operations in the financial markets; a low level of awareness about insurance, securities and investments; - absence of legal knowledge in the field of protection of consumers rights in the financial markets; - nonavailability of professional financial advice to the majority of citizens; and - inability to use government instruments (incentives, tax deductions, and other). CHAPTER 3 OBJECTIVES, TASKS, AND EXPECTED RESULTS Financial literacy generally means the knowledge of financial institutions and products offered on the market, the ability to use them in case of necessity, and understanding consequences of personal actions. It is also the ability to use this information to make intelligent decisions that include the decisions regarding spending and saving, the choice of the corresponding financial instruments, budget planning, and accumulation of resources, for example for education or a life of ease at a mature age. Financial literacy includes three interrelated components: attitudes, knowledge, and skills. Attitudes are a basis of financial literacy. Here we mean the culture of financial behavior, which starts from planning a family budget, including longterm planning. Unless financial planning knowledge and skills are developed, people are habitual of living only for today. Knowledge should include at least a minimal understanding of risks and profits, interest rates, inflation, the difference between cash and non-cash payments, mortgage, principles of functioning of the financial market, the nature and functions of financial institutions, financial instruments, as well as understanding of the basics of legal and fiscal literacy, knowledge of the minimum financial vocabulary, etc.

10 8 Skills are the ability to read the contract and understand information contained therein, to compare the offers of different financial institutions, the ability to calculate the amount of interest on the loan, and many other things. In this regard, financial literacy of the population in the framework of the present document shall mean the ability of the citizens of the Republic of Belarus to: - manage their personal finances effectively; - maintain records of expenses and income of households and perform short-term and long-term financial planning; - optimize the savings/consumption ratio; - understand the peculiarities of various financial products and services (including securities market instruments and investments), possess up to date information about the situation in financial markets; and - make well-grounded decisions regarding financial products and services, and knowingly take responsibility for such decisions. The main objective of the present Joint Action Plan is to develop rational financial behavior of citizens of the Republic of Belarus when making decisions about their personal finance, and improve the efficiency of protection of their rights as investors and consumers of financial services. With a view to achieving the objective of the present plan it is necessary to develop and implement a set of measures aimed at achieving the following key objectives: - establishing sustainable institutional mechanisms for implementation of the present Joint Action Plan involving republican government agencies and local executive and managing bodies, financial institutions, public organizations, educational establishments and enterprises of public and private sector; - drawing the citizens attention to the measures provided for in the present Joint Action Plan, increasing their awareness of the need to improve their financial knowledge (through the specialized surveys, mass media, and speeches of senior government officials); - ensuring staffing capacity for the implementation of the present Joint Action Plan; - developing, testing and distribution (informing financial products and services consumers) of educational programs and tools aimed at improving financial literacy, using both formal and non-formal institutions and channels of children and adults education, as well as a broad range of information materials on protection of rights of consumers of financial products and services; - establishing a system of effective and accessible information resources in the area of financial literacy and protection of rights of the financial products and services consumers; conducting a large-scale information campaign;

11 9 - supporting a wide range of initiatives of all categories of population aimed at improving financial literacy on a competitive basis, promoting financial education, and enhancing protection of rights of the financial products and services consumers; - ensuring capacity building for government bodies and financial institutions in the area of protection of the rights of the financial products and services consumers, including development of personnel s skills, improving the status of information disclosure and understandable presentation of information to the financial markets participants; and - building up a socially responsible behavior of the suppliers of financial products and services with respect to consumers and establishing transparent and unbiased models of promotion and provision of financial services. For the purpose of ensuring an efficient implementation of the present Joint Action Plan, its measures should provide for a comprehensive approach. It means that improvement of the financial literacy should refer to the set of issues related to the various aspects of the financial markets functioning, including banking, insurance, and securities markets. These activities should be accompanied by improvement of legal literacy. For example, a full-fledged inflow of public funds into the financial market is impossible without raising overall financial literacy to a level that allows citizens to make well-grounded decisions, primarily, with respect to the distribution of income between savings and consumption, and then the distribution of savings between different forms, including between bank deposits and investment in other financial market instruments. The comprehensive nature of the problems related to the households financial literacy and the need to cover a wide range of citizens necessitated the participating of numerous government agencies in the implementation of the Joint Action Plan the National Bank of the Republic of Belarus, Ministry of Finance, Ministry of Economy, Ministry of Education, Ministry of Labor and Social Protection, Ministry of Taxes and Duties, Ministry of Trade, Ministry of Information, National Academy of Sciences of the Republic of Belarus, and others. Coordination of efforts of all participants is critical to developing strategic direction, avoiding overlapping, and maximizing involvement of the persons concerned. Each government agency must ensure the implementation of the present Joint Action Plan within its authority through the appropriate departmental and industry-specific programs with a wide support from financial institutions, non-governmental organizations (associations), educational establishments, the mass media, and employers profit-making and nonprofit organizations.

12 10 The aims and objectives of this Joint Action Plan correlate with departmental and sectoral programs, which incorporate provisions on the enhancement of financial literacy of population, including those related to the development of the banking sector, securities market, insurance market, and small and medium enterprises (microfinance). This approach will allow to integrate measures designed to improve financial literacy that are taken in the framework of institutional and sectoral development programs into the Joint Action Plan and to enhance their effectiveness by linking the Joint Action Plan to the measures that are already being implemented or are planned. Moreover, it will enable all stakeholders to join the Plan and will make the latter develop efficiently. The Joint Action Plan is aimed at addressing particular issues of the population, i.e. not so much at promoting modern financial instruments as at ensuring information security for consumers of financial products and services. The approach to enhancing financial literacy is based on the consideration of the citizens practical problems and rests on the budget and income of specific target groups, including those who just start their career, the unemployed, the youth, students, pensioners, people facing serious financial problems, individual entrepreneurs that just start their businesses, etc. Therefore, measures provided for by the Joint Action Plan should be implemented in an interactive manner allowing the participants to report their problems and needs so that they could be provided then with the advice and assistance needed. Activities provided for by the Joint Action Plan incorporate measures aimed at creating a training system for teachers and providing professional development for those who will conduct training programs: banks and insurance companies employees, professional securities market participants, social workers, and other persons engaged in working with clients. An essential condition for the effectiveness of measures contained in the Joint Action Plan is the use of feedback. Financial moods will be monitored with the help of regular polls (via the mass media, websites, and social services). This will make it possible to take preventive measures and mitigate the identified problems through outreach services. A special research group could be formed as an effective step as well. In the course of the Joint Action Plan implementation special emphasis should be made on ensuring objectivity and impartiality of educational programs. It is unacceptable that under the guise of educational and outreach activities marketing or promotion of specific financial products or services offered by some institution were performed. Without having their own financial skills, people may misinterpret information provided by the media, which may entail social and economic risks. In this regard it is necessary to pursue a uniform information policy which implies that news on the economy and state economic policy should be

13 11 accompanied by explanatory remarks. Not only ordinary citizens need such explanations, but also journalists and company managers. The main condition for implementing a unified information policy is having a policy coordinator, which would determine, among others, key requirements to official speeches and provide such conditions that would allow people to receive correct and understandable comments and expert opinions. The main expected result of the Joint Action Plan implementation is an increase in specific indicators that characterize the level of financial literacy of population and the degree of its involvement in investment processes in the financial market. Quantitative indicators characterizing the positive dynamics of the level of financial literacy of the population of the Republic of Belarus and its involvement in investment processes may include indicators which demonstrate a stable growth of: households savings; the volume of retail banking services; the volume of insurance services for individuals; natural persons investments in the securities market; and the share of non-cash turnover in the volume of paid services provided to households. The expected immaterial changes characterizing the positive dynamics of the level of financial literacy of population include: the development of citizens' skills in financial planning and building provisions for contingencies; the development of a new way of thinking among citizens, which would be oriented towards active economic behavior consistent with their financial capacity; the destruction of the paternalistic stereotype of behavior (the reduction of high expectations of the state financial support); an increase in the confidence of consumers of financial products and services in the financial sector; and an increase in the overall economic activity of population as well as lending of support to entrepreneurship and establishment of new businesses. CHAPTER 4 RESOURCE SUPPORT FOR THE JOINT ACTION PLAN The main sources of financing the Joint Action plan will be funds of: financial institutions (banks, insurance companies, professional participants of the securities market, microfinance institutions) as part of programs designed to raise the financial literacy of clients, including corporate ones;

14 12 employers (profit-making and nonprofit organizations) interested in improving the financial education of their employees; public organizations (associations); and institutions involved in implementing projects. The existence of various programs and plans aimed at enhancing financial literacy proves high government priorities in this area, which may encourage sponsors to provide financial support for financial education initiatives. Partners may assist in implementing of the Joint Action Plan through the provision of personnel (volunteers), facilities, educational materials, etc. This Joint Action Plan designed to enhance financial literacy provides the background for negotiating the possibility of implementing a number of measures in the framework of international projects and programs funded by international financial institutions. CHAPTER 5 MECHANISM OF IMPLEMENTATION With a view to developing a strategic direction, avoiding overlapping, and maximizing the involvement of stakeholders in the implementation of the Joint Acton Plan a coordinating body the Interagency Coordinating Council for Improvement of Financial Literacy of Population of the Republic of Belarus (hereinafter the Interagency Coordinating Council) was established in pursuance of joint Resolution of the Council of Ministers of the Republic of Belarus and the National bank of the Republic of Belarus No. 1009/15 On Interagency Coordinating Council for Improvement of Financial Literacy of Population dated November 2, 2012 (National Legal Internet Portal of the Republic of Belarus, November 7, 2012, 5/36447). The Interagency Coordinating Council is comprised of representatives of the National Bank of the Republic of Belarus, Ministry of Finance, Ministry of Economy, Ministry of Taxes and Duties, Ministry of Education, Ministry of Information, National Academy of Sciences of the Republic of Belarus, and other government agencies of the Republic of Belarus, as well as international organizations and the Association of Belarusian Banks. The Interagency Coordinating Council is chaired by the representative of the National Bank of the Republic of Belarus. The Council will be the main facilitator in implementing the state policy in the field of enhancing the financial literacy of population. Almost all countries engaged in improving the financial education of population have determined an organization to perform the leading and coordinating role. In many countries, including Armenia, Poland, Malaysia, Singapore, the Philippines, etc., this role is assigned to the central bank.

15 13 At present, the National Bank is actively working on strengthening the potential of the Republic of Belarus in the field of enhancing the financial literacy and availability of financial services for various categories of the population as well as on building a nation-wide system for financial literacy improvement. The National Bank is promoting cooperation with banks, other financial institutions, and international organizations in this area. Activities related to enhancing the financial literacy of population should be based on a public-private partnership. It is necessary to ensure that financial education initiatives are comprehensively supported by the state, with the resources of government agencies, financial institutions, the mass media, public organizations, and profit-making and nonprofit organizations being used. It is beneficial for banks and other financial institutions when consumers of their products and services have an understanding of financial issues and are involved in the financial sphere instead of being just outside observers that often treat financial products and services with suspicion. Citizens that are confident in their abilities to manage their personal finances are more likely to apply to financial institutions for products or services offered thereby. In this context, financial institutions and their professional associations and unions, including the Association of Belarusian Banks, the Belarusian Association of Insurers, unions of entrepreneurs, etc., should play a significant role in the development and implementation of financial education programs. For instance, many banks are already developing corporate programs aimed at enhancing the financial literacy of their clients and these programs may be incorporated in the activities under the Joint Action Plan. With a view to coordinating the activities of banks in this field, the Committee on Financial Literacy was set up under the Association of Belarusian Banks. Many citizens that are supported by various public organizations (associations) face financial difficulties. The improvement of financial literacy could help them cope with a difficult financial situation and, which is more important, prevent it. In this regard, it is reasonable to involve non-government organizations and associations, including the Consumer Rights Protection Society, public associations of the disabled, the youth, pensioners, veterans, the Belarusian Women's Union, Belarusian Red Cross Society, etc., in the implementation of measures provided for by this Joint Action Plan. Employers and trade unions should be as well interested in improving the financial literacy of employees, as it would help to reduce financial difficulties that employees may face. As a result, they would be more devoted to doing their jobs instead of being distracted by their financial problems. As the experience of many countries evidences, the provision of financial education at work proves to be highly efficient. Moreover, it makes it possible to deliver financial knowledge to more people.

16 14 It is impossible to effectively implement measures provided for by the Joint Action Plan without cooperating closely with the mass media as one of the main channels used to inform the public. In this regard, the media should be assigned the key role in covering financial issues in an objective and understandable manner. It is necessary to actively promote international cooperation in order to adopt the experience of other countries in implementing national programs designed to enhance the financial literacy of population. Currently, a number of international organizations are implementing several projects in the field of financial literacy improvement, these projects having already been tested and having proved to be efficient and successful. In this regard, it is reasonable to further cooperate in this field with the World Bank, the Alliance for Financial Inclusion, other international financial institutions, and use the experience of Russia, Kazakhstan, Armenia, Poland, Germany, and other countries in implementing the mentioned national programs. It is reasonable to classify all measures to implement the Joint Action Plan according to: - the deadlines (immediate measures and long-term measures). Immediate measures are aimed at achieving financial stability of households and preventing mass economic errors. Long-term measures lay foundation for economic culture and create mass stereotypes of effective financial behavior; - the target groups (general public, students, pensioners, schoolchildren, etc.). It is necessary to conduct a nationwide survey into different groups and their needs; and - the tools used (media, administrative, and educational actions, explanatory work, and special actions). Media actions shall include: - the establishment of a single information center having responsibility for setting the goal of the actions and the officials speeches which corresponds to the state information policy in the financial market; - the identification of the main speakers on financial issues; - education for journalists and media staff (the manner in which they present information determines how citizens perceive certain measures and steps taken by government agencies); - the preparation of articles, radio and TV programs, films, TV series, TV commercials of a social nature and the conduct of information campaigns to promote financial literacy; and - public discussion of initiatives and programs for enhancing financial knowledge in the clubs, at the conferences and seminars, in TV programs, etc.

17 15 Administrative actions envisage: - the establishment and maintenance of the Internet portal on financial literacy which will be the main information resource of the present Joint Action Plan. All education materials shall be available for posting on other sites with mandatory reference to their source; - the deployment of the network of financial education centers on the basis of centers for social protection of the Ministry of Labor and Social Protection; - the establishment of the system for monitoring the level of households financial literacy and the efficiency of the state policy measures to increase this level as well as sociological monitoring of the risk groups (pensioners, single parent families and families with many children, etc.); and - the development, based on international practice, of advanced training programs in the field of financial education for public servants, employees of financial institutions, social workers, etc. Educational actions envisage: - actions aimed at training teachers who will conduct financial literacy classes as well as developing, based on international practice, methodological materials, lesson plans, lectures, teaching strategies, etc to assist the teachers working at educational institutions of different levels; - the inclusion of issues relating to financial education, economics, and finance in the curricula of educational institutions and methodological and learning materials on related subjects; - actions aimed at training the financial literacy teachers of educational institutions as well as developing methodological materials; and - the allocation of the learning hours in the higher education programs with a view to organizing special courses in which lectures will be delivered by leading specialists of financial institutions and government agencies regulating financial markets. Direct explanatory work and special actions: - holding roundtable discussions; - organizing call centers and "hot lines"; - providing Internet resources with up-to-date information which is needed by households for making decisions on financial issues; - organizing production of special brochures, newsletters, etc.; - holding workshops in various formats and for various target groups; - developing methodological (including interactive materials and handouts) information and learning materials, games, quizzes, and investment calculators and making them available on the Internet and in the mass media; and - organizing themed financial actions contests, themed weeks, etc.

18 16 Financial Education in Institutions of General Secondary Education Providing schoolchildren with financial knowledge helps to prepare the future generation for managing their finances, as people at a young age can learn easily and their attitude towards personal finance is formed in their childhood. It is necessary to establish close cooperation with institutions of general secondary education and it is appropriate to include financial education into the subjects that already exist (mathematics, social science, The Man and the World, etc.). In addition, financial education will achieve greater degree of success if it is interactive and relates to the issues important for students. For example, websites provide an opportunity for students to participate in contests, games, competitions, and other actions related to personal financial management. Teachers should also be trained to acquire knowledge, skills, and confidence needed for providing financial knowledge. International practice has shown that teachers (along with many other groups of the population) in many countries are not able to control their personal finances well enough. Methodological materials for institutions of general secondary education should be accurate and up-to-date, easily understandable and adaptable; they should not promote brand products and services; they should be devised in partnership with teachers and should be tested in institutions of general secondary education. Financial education may also be provided to children through extracurricular activities in the form of savings clubs, optional financial education, debates, theatrical performances, children's TV programs and games, contests, competitions, and visits to financial institutions to get familiarized with banking, insurance, and basic financial knowledge. Financial Education for Youth Even if young people have received financial education in institutions of general secondary education, the subsequent financial education through vocational, secondary special and higher education will be useful for them when their responsibility for the management of their personal finances increases. Financial education can potentially be provided through special courses, extracurricular activities (such as clubs and associations), as well as social initiatives and financial planning workshops. A website developed by young people and maintained thereby can play an important role in their training. Training and tutorial support of volunteers

19 17 (students, representatives of youth organizations (associations), etc.) who act as financial advisors to others should become a key element in the work with young people. Other possible channels to provide financial education to youth are TV and radio programs, magazines, SMS, social media, and websites that are popular among young people and youth organizations. On-the-job Financial Education Briefings, discussions, workshops, corporate training, a series of money management educational actions, and financial advice to be included in the corporate media are among on-the-job financial education actions. Volunteers from financial institutions may become trainers for this target group provided that they will not advertise products or services of their institutions. Work with the Mass Media Financial education may be provided through traditional and new mass media, including TV, radio, newspapers, magazines, websites, and social media. Their efficiency will be higher if the content is entertaining and the audience is involved directly. The Internet portal a resource where one can see reference data of all participants in the present Joint Action Plan via links and references (different websites aimed at enhancing financial literacy, education programs, publications, etc.) should become an important channel to provide financial education. This will help to avoid dispersion of information and will increase confidence in it, because users may not know which sites are truly objective and credible. Various guidelines, budget planning tools, planning blocks, tips, warnings, and games will be posted on this Internet portal devoted to financial education. There can be sections for such specific groups of the population as children, college and university students, young people, parents, teachers, employers, volunteers, pensioners, scientists, and so on. Users will be visiting financial education websites with great pleasure if they are visually appealing, interactive, and widely publicized. Linking to a variety of popular sites is an effective method to direct traffic to the financial education website. Publications are also a useful means of promoting financial education, as every copy of the publication can be read by several people. One can use a

20 18 number of different publications, including flyers, brochures, articles in newspapers and magazines, handbills and posters. Information campaigns are another powerful instrument for sharing financial knowledge with households and drawing attention to the resources and programs. Various tools and communication technologies should be used to reach a diverse audience in the course of campaigns, including the Internet and social media (eg, Facebook, Twitter, YouTube), TV, radio, and print media (for example, brochures, advertisements, and posters). Other Programs of Information and Explanatory Work Financial education may be also organized through seminars, road shows, exhibitions, theatrical performances, games, and mobile operators. Financial education may prove to be particularly effective if it is based on examples drawn from people s life (in such situations people may become more perceptive to financial education), such as obtaining a passport, entering the university or college, getting married, having children, entering a new job, starting a business, buying a house or a car, and preparing for retirement. Financial education may be provided by organizations and individuals whom people trust and with whom they contact in the course of their everyday life, such as municipal services, women, youth, and civil organizations (associations), etc. Many of these organizations need support in terms of resources, training, or funding so that they could effectively provide financial knowledge. Other types of financial education programs include programs to provide education for women and pensioners, weeks to promote financial education, and individual financial consultations. They must be accompanied by training programs for teachers and trainers in order to give them appropriate knowledge and skills with a view to carrying out effective work aimed at providing financial education. CHAPTER 6 CONTROL OF THE IMPLEMENTATION OF ACTIONS An assessment of the effectiveness of actions taken during the implementation of the present Joint Action Plan requires monitoring to be carried out both as part of annual nationwide survey into the qualitative changes in the level of financial literacy and behavioral stereotypes of citizens in the financial sector and through evaluations of individual actions in the sphere of financial education in order to determine the level of their efficiency and feasibility of their further implementation.