Why is it important for the ABBL to support financial literacy?
We strongly believe that Luxembourg's banking community has a role to play in raising awareness about the need for the dissemination of financial knowledge. We are convinced that the development of financial literacy skills is essential to equip people with the necessary knowledge required to face the many decisions each one of us is confronted with in our daily lives. Numerous studies conclude that financial literacy is best instilled when learnt from an early age and helps citizens better understand and manage the daily financial aspects of life. As the oldest and largest professional association in the financial sector in Luxembourg, we advocate for the integration of financial literacy into school curricula so that all children in Luxembourg can benefit from this initiative from the beginning of the learning process.
What kinds of initiatives has the ABBL been involved in over the last years?
We used to focus solely on providing information to bank customers but over the years we have developed many projects. To achieve the best possible outcome, the ABBL decided in 2015 to partner with other actors involved in financial literacy. Together with the CSSF, Luxembourg’s financial regulator, NGOs, consumer protection associations, and financial centre representative bodies, the ABBL elaborated the national strategy for financial education. Along with other European banking associations, united under the European Banking Federation, we launched the “European Money Week”, organised annually in most European countries. In Luxembourg during the “Woch vun de Suen” we have been offering two hours of basic advice including how to spend money wisely for 10 to 12-year-olds for five consecutive years.
What are the next steps?
In 2016, we created the ABBL Foundation for financial education, which is dedicated exclusively to promoting and supporting financial education at all levels as well as doctoral research and corporate programmes. The ABBL will continue to support the CSSF in its efforts to develop educational tools addressing important issues such as credit, saving, over-indebtedness, retirement, or managing a personal budget. As of this year, we will also offer high school students the possibility to participate in the European Money Quiz, a competition testing the financial knowledge of 13 to 15-year-olds. Financial literacy will remain a priority for the ABBL and we will continue to develop our activities as well as support others in doing so.
CHALLENGES
Consumer protection
The ABBL is committed to raising awareness among adolescents to address topics such as financing studies and property rental and purchase. With the Luxembourg Chamber of Commerce we launched the “One Minute in Finance” educational videos to inform people about banking matters.
Foster financial skills
The ABBL welcomes the fact that financial literacy has caught the attention of the new Government, which has set goals such as including financial literacy courses in elementary schools, introducing modular financial education courses in high schools and offering open information sessions on various financial topics.
Learn to manage money
Throughout our lives we are faced with important decisions regarding financial planning: how to spend money, how to save, how to prepare for retirement, or how to manage non-foreseeable events affecting our financial situations. The ABBL tries to ensure that young people are able to acquire financial knowledge to help them better manage their money.