Minister McGrath announces development of Ireland’s first National Financial Literacy Strategy
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From: Department of Finance
- Published on: 12 July 2023
- Last updated on: 24 January 2024
The Minister for Finance, Michael McGrath, has announced the development of the first National Financial Literacy Strategy for Ireland.
The Minister made the announcement following the launch of the Competition and Consumer Protection Commission’s (CCPC) report on ‘Financial Wellbeing in Ireland: Financial literacy and inclusion in 2023’.
Speaking today, Minster McGrath said:
“The CCPC has undertaken significant work in relation to financial literacy and well-being in recent years, and I look forward to working closely with them and other stakeholders as my department begins its work to develop a National Strategy on Financial Literacy for Ireland.
"The results recently published by the CCPC will give us a clear baseline of the level of financial literacy in Ireland and rich information to use as we progress our work.
"A lot of good work is being done in the area of financial literacy by a range of bodies, both public and private. However, it is clear to me that this work needs to be better coordinated and be guided by an overall national strategy. This is an area I have a personal interest in and I am deeply conscious of the benefits at a societal and individual level of strong financial literacy skills.”
The initial phase of this work will be to conduct a mapping exercise of relevant evidence and analysis. This will involve:
1. Establishing levels of financial literacy and well-being of the population.
2. Gathering information on the existence of and access to financial literacy programmes across the population and specific subgroups.
3. A review of relevant national and international examples, good practice, research and literature to identify operational and replicable practices.
4. Engaging with international peers who have financial literacy strategies in place, learning from their experiences.
5. Identifying areas of financial literacy gaps to be closed.
6. Identifying possible target audiences for interventions.
The work will complement a number of other developments in the consumer protection space, including the development of a National Payments Strategy and the Central Bank’s ongoing Review of its Consumer Protection Code.
Notes
In 2022, the Retail Banking Review recommended that the Department of Finance should seek to ensure that all stakeholders work together so that Ireland is compliant with the OECD High Level Principles on Financial Consumer Protection and the Recommendation on Financial Literacy.
The Irish National Financial Literacy Strategy will be developed in line with the OECD Recommendation on Financial Literacy (2020).
That recommendation is intended as an instrument to assist governments, public authorities and other relevant stakeholders in their work to design, implement and evaluate financial literacy policies.
The 2020 OECD Recommendation on Financial Literacy defines financial literacy as:
“a combination of financial awareness, knowledge, skills, attitudes and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being.”
Relevant links
CCPC press release on launch of Financial Wellbeing in Ireland: Financial literacy and inclusion in 2023: https://www.ccpc.ie/business/ccpc-issues-landmark-report-on-financial-wellbeing-in-ireland/
Retail Banking Review Report: Retail Banking Review
OECD Recommendation on Financial Literacy: https://www.oecd.org/finance/OECD-Recommendation-on-Financial-Literacy.htm