02 October 2023

Speech by Commissioner McGuinness at the launch of the joint EU/OECD-INFE financial competence framework for children and young people

Because knowing about money and understanding it is in my view essential, at every stage in life, and we need to start early. I really want to say how grateful I am that we are at this position where we're launching something so important. And launching it with the OECD.

Because knowing about money and understanding it is in my view essential, at every stage in life, and we need to start early.

I really want to say how grateful I am that we are at this position where we're launching something so important.

And launching it with the OECD.

And here I really want to welcome OECD Deputy Secretary-General Yoshiki Takeuchi – please a round of applause, because it's fantastic you're here.

And of course a big welcome to the students – it's really super you're here.

We've had a lovely conversation – not to prepare but just to say hello to each other and to discuss this topic, and we'll have a conversation very shortly.

Because today is about you – it's about young Europeans.

And it was so important for us to have young people here – also to bring down the average age a little.

That matters too – and I know we'll have a good engagement.

What we're essentially doing here today is launching something that's about you and your relationship with money.

We want to help you understand how money works and the many decisions you're going to have to take about money – right now and of course into the future.

Most of us have dealt with money at various stages. What I would really like to achieve from this event, and its impact, is that people are more confident to ask questions about money and the financial system and indeed about the economy – because it all exists together.

Now we have a big title for what we're talking about today – and that's ‘financial competence framework'.

In simple terms, it's about what you need to know about money.

And there's a few points I'm going to address in more detail.

One of them is what we mean by the term ‘financial literacy' – why it's important, particularly for young people.

Secondly, what are the European Commission alongside the OECD doing about it.

And a crucial question for me is why are we doing this work.

So ‘financial literacy' – what is it?

Very simply – it's about knowing your way around money and what to do with it.

I keep saying this – that money matters – especially when you only have a small amount of it.

So what you do with it is really important, and it starts at a young age.

So some of you might get pocket money from your parents – if you help around the house, or just because you're you.

But I hope you help around the house also.

Then when you get a bit older and have a part-time job.

That gives you financial independence. You can go out with friends and you can choose to spend your money, because you've earned it.

You can spend all of it, or you can spend some and save the rest.

And then the money that you have and you use could take very different forms.

You might use cash.

Or you might have a savings account or indeed a debit card....

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