I am turning in this blog post to the new financial literacy module that will be added to the Programme for International Student Assessment (PISA) in 2012. PISA’s group of financial literacy experts met in Melbourne at the end of September and finalized the questions that will be asked of 15-year-old high school students in 18 countries. I wrote about this module in a previous post (see link below) and it is time for an update.
I have the honor of chairing the financial literacy experts group, and an honor it is because the group is composed of some of the most accomplished and knowledgeable people in the field of financial literacy from a number of countries. Because the importance of financial literacy was first acknowledged outside the school system and was first dealt with by policy makers and regulators, many of these experts come from Treasury departments or hold jobs in central banks, regulatory authorities, or are involved with other government agencies. Nonetheless, the work has been academic in nature, meaning we went through a very rigorous process of designing a set of questions that can measure financial literacy in many different countries.
Our first task was to design a financial literacy framework to help us define the objectives of the module and the areas to cover when designing questions (The framework can be accessed on the OECD web site—the link is below). The development of the framework followed a sequence of six steps:
• Development of a working definition for the domain and description of the assumptions that underlie that definition;
• Identification of a set of key characteristics that should be taken into account when constructing assessment tasks for international use;
• Operationalization of the set of key characteristics that will be used in test construction, with definitions based on existing literature and experience in conducting other large scale assessments;
• Evaluation of how to organise the set of tasks constructed in order to report to policy makers and researchers on achievement in each assessment domain among 15-year-old students in participating countries;
• Validation of the variables and assessment of the contribution each makes to understanding task difficulty across the various participating countries; and
• Preparation of an interpretative reporting scheme for the results.
It was a long journey for all of us. We started this work in June 2010 with a meeting in Boston and we worked steadily for a year and a half. We met at regular intervals, each time in a different country, which also reminded us that our focus was to design questions that could be answered in different economic settings and different educational systems.
The OECD has been a pioneer in financial literacy and adding a new module on financial literacy in 2012 in PISA in countries that have not even formally introduced financial education in school speaks of their long-term vision and their capacity to lead and draw the attention of countries toward important topics such as financial literacy. I particularly like the statement that the OECD displays on the top of their PISA webpage:
“Are students well prepared for future challenges? Can they analyse, reason and communicate effectively? Do they have the capacity to continue learning throughout life? The OECD Programme for International Student Assessment (PISA) answers these questions and more, through its surveys of 15-year-olds in the principal industrialised countries. Every three years, it assesses how far students near the end of compulsory education have acquired some of the knowledge and skills essential for full participation in society.”
This statement serves to remind us that financial education is as important as the traditional subjects taught in school: As I have mentioned often, just as it was not possible to live in an industrialized society without print literacy—the ability to read and write, so it is not possible to live in today’s world without being financially literate. The financial crisis has put economic news on the front pages of newspapers almost daily, requiring individuals not just to be abreast of concepts such as deficit, national debt, and interest rate spread but also to evaluate the economic reforms that political leaders are proposing. Not only are young people required to make one of the most important decisions of their lifetime— whether to invest in higher education—during high school, but they are also confronted with numerous decisions of economic consequence: having a car, a cell phone contract, a bank account, and a debit or credit card. Financial literacy is an essential tool for anyone who wants to be able to succeed in today’s society, make sound financial decisions, and—ultimately—be a good citizen.
We, on the PISA committee, are only at the beginning of our journey. Our next meeting has been scheduled for Heidelberg, Germany, next September, so we fly to yet another country. I have collected little items from those trips to remind me of our meetings. From our trip in Australia, I brought home a little yellow road sign that hangs in my study. It says: “Kangaroos, next 15 km.”
To read the financial literacy framework, please see below:
http://www.pisa.oecd.org/dataoecd/8/43/46962580.pdf
My previous blog on PISA:
http://annalusardi.blogspot.com/2010/09/comparing-financial-literacy-of-young.html
We are All Blacks!
This has been a busy fall so far with a lot of travelling (I am on my way to Sweden), starting a new financial literacy seminar series (more in future blogs), and keeping up with my newly acquired interests: football and rugby! It has been a season full of exciting games, including the Rugby World Cup, which was held in New Zealand. I am extremely happy to announce that the New Zealand All Blacks are the World Cup champions! I am ecstatic and wish I were in New Zealand to celebrate their victory. What could be sweeter than winning the World Cup when your country is the host and your fans are in the stadium? I can only imagine the explosion of joy in Eden Park in Auckland at the end of the match with France (and the sense of relief as well since the score was so close, I could hardly breath...).
I will celebrate this great victory by writing about New Zealand and the role they have played in the field of financial literacy. Under the leadership of feisty Diana Crossan, the Retirement Commission has done a lot of innovative work on financial literacy. I mentioned in a previous post that they have one of the best national web sites dedicated to improving the financial literacy of the population. They were also one of the first countries to conduct a second national financial literacy survey in order to measure financial knowledge over time and therefore assess their progress in improving financial literacy. They have many programs targeted to specific groups of the population, recognizing that different people have different needs and different economic circumstances. One group of great interest is the Maori, and specific programs have been designed for them as well. While small and without a big budget, the Commission is a mighty group. And to better communicate the focus of their work, they have recently changed their name from Retirement Commission to the Commission for Financial Literacy and Retirement Income. The main lesson here is not to underestimate the power and ingenuity of what one institution—however small—can do for financial literacy. And while New Zealand is a small country, it has been a model to look to for financial literacy.
I have one recommendation for Diana Crossan: go to that talented captain of the All Blacks, Richie McCaw, show him your muscles (figuratively, I mean), and ask the team to support financial literacy. I am sure a lot of New Zealanders would pay attention. In my view, sport and financial literacy go very well together (wink)!
But for now, congratulations to the All Blacks and to New Zealand for being World Champions and hosting the World Cup. Bravi!
I will celebrate this great victory by writing about New Zealand and the role they have played in the field of financial literacy. Under the leadership of feisty Diana Crossan, the Retirement Commission has done a lot of innovative work on financial literacy. I mentioned in a previous post that they have one of the best national web sites dedicated to improving the financial literacy of the population. They were also one of the first countries to conduct a second national financial literacy survey in order to measure financial knowledge over time and therefore assess their progress in improving financial literacy. They have many programs targeted to specific groups of the population, recognizing that different people have different needs and different economic circumstances. One group of great interest is the Maori, and specific programs have been designed for them as well. While small and without a big budget, the Commission is a mighty group. And to better communicate the focus of their work, they have recently changed their name from Retirement Commission to the Commission for Financial Literacy and Retirement Income. The main lesson here is not to underestimate the power and ingenuity of what one institution—however small—can do for financial literacy. And while New Zealand is a small country, it has been a model to look to for financial literacy.
I have one recommendation for Diana Crossan: go to that talented captain of the All Blacks, Richie McCaw, show him your muscles (figuratively, I mean), and ask the team to support financial literacy. I am sure a lot of New Zealanders would pay attention. In my view, sport and financial literacy go very well together (wink)!
But for now, congratulations to the All Blacks and to New Zealand for being World Champions and hosting the World Cup. Bravi!
Financial literacy, the Maori, and … rugby
I am just back from Australia and New Zealand and will write first about my trip to New Zealand. I was invited to attend a meeting at the University of Otago with representatives of the Maori population, who have become interested in financial literacy. If you do not know the Maori, they are the indigenous people of New Zealand and represent about 15% of the population today. Their name is derived from “Ma-Uri,” which means “children of Heaven.” Maori comprise many “iwi” (tribes), “hapu” (subtribes), and “whānau” (extended family units). Having originated in Polynesia, they brought with them the rich culture of the region, where song, dance, art, and oratorical skills were significant, especially as there was no written language at that time. On my visit to New Zealand a couple of years ago, I went to Rotorua, a town settled by the Maori on the North Island. This time, I was in Dunedin, on the South Island of New Zealand, home of the Ngāi Tahu. See below a picture of the formal greeting among the Maori.
In one of the papers that is part of an international comparison of financial literacy across countries, which I have edited for a special volume of the Journal of Pension Economics and Finance, a research group in New Zealand headed by Pension Commissioner Diana Crossan documented differences in financial literacy among the new Zealanders of European descent and the Maori population; the Maori tend to know less. However, this is not the case for the Ngāi Tahu, and one explanation offered for this finding is the fact that Ngāi Tahu have promoted a series of programs aimed to increase financial literacy and saving. A description of Whai Rawa, their matched saving initiative, is provided on the web page noted at the end of this post. The meeting at the University of Otago was about trying to measure the effectiveness of the new initiatives and changes in the well-being of this population over time.
It felt special to sit among this group. The meeting opened with the traditional Maori greetings, and much of the discussion and questions were led by one of the Ngāi Tahu representatives. He was just as one would expect a chief to be: charismatic, wise, and pragmatic. His questions to me were remarkably similar to the ones I often hear when I travel around the world: What is the business case for financial education? What works? and How do we know that it works? But there were major differences, too. The Ngāi Tahu’s planning horizon is very long. Their vision is “For us and our children after us” (Mō tātou,ā, mō kā uri ā muri ake nei). They feel strongly about their community and about sustainability of resources over time. I came away with not only a deeply felt respect for such foresight but also admiration for this capacity to lead and look ahead.
You may know about the Maori from the “haka,” or war dance, that the New Zealand rugby team performs before each game (if you have not seen it, you have got to watch the video posted below). I like the haka for many reasons. First, it shows how much the Maori traditions have been embraced by the population in general. Maori or not, every player in the rugby team plays the haka very seriously. Second, one wants to build up energy at the beginning of an important event. Third, it scares the hell out of the opposing team. And this brings me to my next topic: rugby! New Zealand is currently hosting the Rugby World Cup. Their national team is the All Blacks, and I spent a good part of my time in New Zealand watching rugby. The All Blacks are amazing players and I was glued to the TV for hours. On Sunday, I went to the stadium in Dunedin to watch Italy against Ireland. We (Italy) did not win, but we put up a good fight against the Irish; it was a good game. On the first leg of my trip back to the U.S. on Air New Zealand from Dunedin to Auckland, the flight safety video was done by the captain and the coach of the All Blacks and everything on the plane was about the All Blacks, including pictures of the players on the coffee cups. Believe me, they are irresistible! One advertisement said: “we are crazy about rugby.” Well, for a week I was too.
Kia ora.
http://www.facebook.com/pages/Financial-Literacy-Center/119369231450239
http://www.ngaitahu.iwi.nz/News/2011/Whai-Rawa-Five-Years-of-Saving-Success.php
http://www.youtube.com/watch?v=6f3fvUvOiLQ&feature=related
In one of the papers that is part of an international comparison of financial literacy across countries, which I have edited for a special volume of the Journal of Pension Economics and Finance, a research group in New Zealand headed by Pension Commissioner Diana Crossan documented differences in financial literacy among the new Zealanders of European descent and the Maori population; the Maori tend to know less. However, this is not the case for the Ngāi Tahu, and one explanation offered for this finding is the fact that Ngāi Tahu have promoted a series of programs aimed to increase financial literacy and saving. A description of Whai Rawa, their matched saving initiative, is provided on the web page noted at the end of this post. The meeting at the University of Otago was about trying to measure the effectiveness of the new initiatives and changes in the well-being of this population over time.
It felt special to sit among this group. The meeting opened with the traditional Maori greetings, and much of the discussion and questions were led by one of the Ngāi Tahu representatives. He was just as one would expect a chief to be: charismatic, wise, and pragmatic. His questions to me were remarkably similar to the ones I often hear when I travel around the world: What is the business case for financial education? What works? and How do we know that it works? But there were major differences, too. The Ngāi Tahu’s planning horizon is very long. Their vision is “For us and our children after us” (Mō tātou,ā, mō kā uri ā muri ake nei). They feel strongly about their community and about sustainability of resources over time. I came away with not only a deeply felt respect for such foresight but also admiration for this capacity to lead and look ahead.
You may know about the Maori from the “haka,” or war dance, that the New Zealand rugby team performs before each game (if you have not seen it, you have got to watch the video posted below). I like the haka for many reasons. First, it shows how much the Maori traditions have been embraced by the population in general. Maori or not, every player in the rugby team plays the haka very seriously. Second, one wants to build up energy at the beginning of an important event. Third, it scares the hell out of the opposing team. And this brings me to my next topic: rugby! New Zealand is currently hosting the Rugby World Cup. Their national team is the All Blacks, and I spent a good part of my time in New Zealand watching rugby. The All Blacks are amazing players and I was glued to the TV for hours. On Sunday, I went to the stadium in Dunedin to watch Italy against Ireland. We (Italy) did not win, but we put up a good fight against the Irish; it was a good game. On the first leg of my trip back to the U.S. on Air New Zealand from Dunedin to Auckland, the flight safety video was done by the captain and the coach of the All Blacks and everything on the plane was about the All Blacks, including pictures of the players on the coffee cups. Believe me, they are irresistible! One advertisement said: “we are crazy about rugby.” Well, for a week I was too.
Kia ora.
http://www.facebook.com/pages/Financial-Literacy-Center/119369231450239
http://www.ngaitahu.iwi.nz/News/2011/Whai-Rawa-Five-Years-of-Saving-Success.php
http://www.youtube.com/watch?v=6f3fvUvOiLQ&feature=related
Geocoding And Its Importance to Businesses
The value of geo-location and geo-targeting technology is manifold. It has done wonders for businesses in any sector in driving up customer awareness and increasing its sales. With location intelligence technology, businesses can better identify business solutions and make better business strategies.
In the marketing sector, GIS data has helped advertisers better target their products and services to the right audience. By appending demographic data to latitude and longtitude data, marketers are able to identify where specific consumers are located. They can therefore create marketing ads that caters to the interests of a specific target group and hence, boost profit.
Furthermore, insurance companies can better set premiums and make accurate underwritings that are based on a client’s specific location. If they are for instance, located in hurricane or flood prone areas, insurance companies can account for such factors in their insurance rate estimates, as well as make other offers that would help customers better cope with the financial responsibility in case their property gets hit with an occurrence.
Geocoder technology are also being used by the average consumer. Think about. How many times have used Google Maps or GPS mobile app to look for a specific restaurant or to find directions to a specific venue?
Many businesses have also incorporated geospatial technology into their online presence as well. Nowadays, if you were to visit a store’s website and inquire about their weekly flyer, the site would usually ask for your postal code which will then provide customers’ specific sale offerings that are available in their area. Through integrating GIS data into their website, businesses are able to provide a more enhanced and personalized experience for online visitors and even drive traffic into their retail store.
Geospatial technology is as important to consumers as it is to businesses. This blog post hopefully has helped you better understand the workings of geospatial technology and its value.
Mortgage Broker Role In Home Shopping
In business, there are many activities that are to be done. Investing is one of this main activities people do. Investment can be stocks, savings accounts or even real estate. Real estate examples can be a house, apartment, condos and even land.
Purchasing real estate is really a big kind of investment. It is not like shopping at the mall for a pair of boots. It is a bit more serious and it entails a large sum of money. People should get help before they make this important decision. The assistance comes from mortgage brokers Toronto. The broker is not necessarily the person that gets you a house. They are the person in charge of realizing the financial situation with the price of the home. They need to make sure the people can afford the dream house chosen. The first thing to they do is study the buyer’s financial situation. The persons will need a down payment for the first instalment of the house. The remaining price is almost improbable to pay in cash. This is why they need a loan. The broker revises the financial situation and they decide on what kind of loan the person we can get. Secondly, they are to revise the rates the person will borrow in. The rate and the info will determine how long the person will need to finish the loan.
The Toronto mortgage broker is extremely important in this exchange. They are the ones that ensure that the dream of getting a job is realistic depending on the financial standing. People should get help because it is extremely important.
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