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ASIC's Financial Literacy Community of Practice 26 Feb 2016

Delivering Financial Education in Singapore

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MoneySENSE: Singapore’s national financial education programme

• Launched in 2003

• Our national strategy includes: – Educational aims and financial wellbeing outcomes for the

consumer

– Research-based approach to delivering education

– Evaluation of effectiveness of initiatives

• Spearheaded by the Financial Education Steering Committee – Chaired by Monetary Authority of Singapore, with

representatives from other agencies such as Ministries of Education, Health, Manpower and Social and Family Development as well as Central Provident Fund Board, People’s Association and National Library Board

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MoneySENSE: Strategy and Approach

• MoneySENSE aims to equip Singaporeans with the five core financial capabilities to be self-reliant in their financial affairs and help them achieve four financial wellbeing outcomes.

• The four consumer outcomes are: – Managing their cash flow (and living within their means) – Planning ahead for sufficient income for life (including during

retirement); – Buying a home within their means; and – Being financially prepared should unforeseen events like

accidents and illnesses occur (providing for their healthcare needs and financial protection for dependants).

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MoneySENSE: Strategy and Approach • The five core capabilities build on MoneySENSE’s three tiers of

financial literacy.

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Investment Know-how

Financial Planning

Basic Money Management

Understanding money

Understanding yourself, your

rights and responsibilities

Managing everyday money

Planning ahead

Selecting suitable financial products

Our three tiers of financial literacy

Five core financial capabilities

MoneySENSE 3-Prong Approach to Delivering Financial Education

• Encourage financial prudence and building financial capabilities • Broad-based media initiatives, e.g. ad campaigns on single

themes • Raise public awareness of MoneySENSE

Mass Outreach

• Build basic money management skills • Students: challenges, quizzes and games creation competitions • Working adults: Free workplace & public talks by MoneySENSE –

Singapore Polytechnic Institute for Financial Literacy (IFL) • Vulnerable segments: customised outreach by (IFL) and partners

Sharper focus on students, working adults & vulnerable segments

2 • Enhance awareness of new and/or complex products,

transactions (e.g. leveraged transactions), hot topics, e.g. possible scams, financial trends and policies

• In-depth approach via media columns and public seminars, e.g. My Money Seminars

Targeted education on thematic issues

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MoneySENSE Roadmap

Strengthen MoneySENSE Brand and Awareness

Students Young & Starting

Out

Older with

Families

Low Income Seniors

Middle Income w Young Families

Retirees

Targeted Initiatives (Specific Segments)

Broad-Based Initiatives (General Population) Ad campaigns: Spend within your means, Save and Invest

Regularly Info Advertorials, Radio, Community Outreach

Financial Education for Singaporeans

Public Awareness of MoneySENSE

• Start young to build good financial habits & values • Provide tools and resources that turn knowledge into action

and sustain good financial behaviours • Educate consumers at important life events • Step up talks and workshops at workplaces and outreach

where they are

MoneySENSE in 2015

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Broad-based initiatives Three Integrated Ad Campaigns

Applying consistent messaging across

both traditional and non-traditional

marketing channels and using different

channels to reinforce each other

Integrated ad campaign

for critical themes

TV advertising

Social Media

Radio Print ads

Direct marketing

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Campaigns build public awareness and strengthen

MoneySENSE brand

Three Themes for 2015

• Spending within your means >> tackle over-spending as the root cause of over-borrowing on unsecured credit

• Promote long term and regular saving and investing regularly – Umbrella ads (to promote basic investing concepts)

• Know your risk appetite, know your goals • Diversify • Adapt to suit life stage

– Ads to introduce lower cost, simple investment products • Singapore savings bonds (SSBs) • Retail corporate bonds • ETFs*

• Introduction of Direct Purchase Insurance (life insurance you can buy more cheaply without financial advice) & compareFIRST (an interactive web portal that allows consumers to compare similar life insurance products by different insurance companies).

* Ads alerted consumers about complex synthetic ETFs too.

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“Don’t Over-spend”

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“Save and Invest Regularly”

• Add Kellie’s slides on ad campaigns

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Bus Shelter Ad for compareFIRST

Bus Shelter Ad for Direct

Purchase Insurance

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Broad-based initiatives Radio

RADIO 938 LIVE DOLLARS AND SENSE Topics (from May 2015 to Jan 2016)

Capital protected & structured investment

products

Retirement planning

Investing in Bonds Introduction to insurance & life Insurance Needs

Investing in Shares Types of Common Life Insurance Policies

(included Direct Purchase Insurance and

compareFIRST)

Investing in Foreign Currency Financial Advisory Process (included DPI and

compareFIRST)

Investing in Gold Making Life Insurance Claims

Credit and Debit Cards (new rules) Types of Health Insurance

Credit and Debit Cards (Features) MediShield Life, ISPs and Eldershield

Credit and Debit Cards (Fees for foreign

currency & overseas transactions, plus card

safety & double swiping)

Things to watch out for in a Health Insurance Plan

Singapore Savings Bonds Making Health Insurance Claims

ETFs General Insurance – Travel, Personal Accident

Bonds include retail corp bonds General Insurance – motor, who you are dealing

with?

Bankruptcy (MinLaw) Round-up or Re-cap of Key Insurance Topics

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• Ran 4 info advertorial in all 4 national papers

• Topics covered • Prudent borrowing • Investing, retail

bonds, Singapore Savings Bonds and ETFs (in two parts)

• Direct purchase insurance

• Contest sign up rate per series: ~700 entries

Broad-based initiatives Print media

Initiatives for Target Segments

Retirees & Low Income Seniors Lack basic money management skills;

struggle to make ends meet; often attend community events

• Annual active ageing roadshow &

Lifelong Learning (C3A) • PA Senior Academy

Young & Starting Out Low financial literacy but keen;

unsure where to get trusted source

• My Money@Campus • New IFL modules on

Money Management for youths; Fundamentals of Share Investing

Middle Income with Families Low financial literacy but motivated to

enhance lifestyles; want summarised, easy to understand information

• IFL workplace talks and workshops

Older with Families Low financial literacy but looking

to upgrade; juggle with competing priorities

• My Money Seminars • Info-ad series in four

national papers • IFL talks and workshops

2015 Initiatives for Students and “Interested” Segments

2015 Initiatives for Retirees and “Uninterested” Segments

Students Need to start young; like games

& social media • National Economics and

Financial Management Challenge

• Singapore Games Creation Competition

• National Primary Games Creation Competition

Ongoing and Available to All: IFL Public Talks and e-learning, MoneySENSE Website and FB Page

Student segment

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• At primary school, financial literacy concepts are infused into the curriculum. Schools also organise financial education enrichment activities involving board games, quizzes and competitions for students.

• All lower secondary school students learn to apply basic money

management concepts during Food & Consumer Education. For example, budgeting when planning healthy and balanced meals and making informed choices as consumers.

• In 2015, MoneySENSE supported two web-based games creation

competitions to support financial literacy education for students. • MoneySENSE has also supported the National Economics and Financial

Management Challenge 2015, together with the National University of Singapore Economics Society (“ENS”).

• MoneySENSE also launched My Money@Campus for tertiary students who may be keen to start investing but are not sure how to begin.

<Confidential>

National Primary Games Creation Competition

• Participants: Primary

school students

• 81 entries from 40 schools

• Theme: A community of Savvy Savers

• Prize sponsor with the People’s Association

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<Confidential>

Singapore Games Creation Competition

• Participants: Secondary and ITE students

• 164 teams comprising 535 students from 50 schools

• Theme: The Odds Are Never In Your Favour

• Prize sponsor with the National Council on Problem Gambling

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National Economic and Financial Management Challenge

• Participants: Junior College and Polytechnic students

• 71 teams comprising 284 students

• Combines social media with presentations and challenges

• Quizzes on Economics and Financial Management content

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My Money @ Campus • Participants: 335 Tertiary

students

• Theme: Building an affordable investment portfolio

• GOH and keynote speaker: Mr Piyush Gupta, CEO, DBS

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Interested: Young and Starting Out

My Money Seminar Series

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Interested: Older with Families

My Money Seminar Series

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• Series of investor education seminars organised with Association of Banks in Singapore, Singapore Management University (SMU) and Securities Investors Association of Singapore (SIAS).

• Industry practitioners cover features and risks of common financial products, while SIAS and SMU speakers provide independent views on product risks and the importance of diversification and asset allocation.

• Key theme for 2015 was saving and investing regularly for the long term with simple, low cost investment products such as ETFs and Singapore Savings Bonds.

• Outreach: 2,162 members of the public (with highest turnout of 700 for the ETFs seminar in English)

Interested: Older with Families

MoneySENSE-Singapore Polytechnic Institute For Financial Literacy

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• Has vital role in reaching both interested and uninterested target segments.

• Free talks and workshops and availability at workplaces and libraries means easy access for less interested busy adults.

• Provides customised talks for the vulnerable segments.

• Equips social workers with core financial capabilities to support those managing on financial assistance.

MoneySENSE-Singapore Polytechnic Institute For Financial Literacy

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• Tap on SP’s pedagogical expertise to develop and deliver training materials for working adults and students.

• Dedicated team to develop content & deliver programmes

• Active marketing of programmes. Scalable and sustainable.

• Ensures consistent messaging and quality.

• From launch in July 2012 to Nov 2015, IFL has reached 65,000 participants.

Institute for Financial Literacy

Growing Up Starting Out Setting Up Building Up Retirement

-Making Sense Of Your Money -Money Management for Youth

-Financial Planning Begins Now - Are You Borrowing Too Much - Buying A Home Within Your Means -Introduction To Personal Investing

- Understanding Life Insurance - Understanding Basic Health Insurance Schemes - Starting A Family - Introduction To Personal Investing - Share Investing - ETFs

- Building Your Nest Egg - Enrich Your Golden Years Understanding Bonds

-Introduction to Estate Planning - Is The Deal Too Good To Be True?

Sample of IFL Modules Arranged by Life Stage

Customised talks are

available. Example: IFL has talks for families with

special needs children.

Institute for Financial Literacy Evaluation study underway to • Evaluate IFL’s effectiveness in delivering financial literacy

education • Pedagogy

• Content and teaching materials

• Modes of delivery

• Evaluate the impact of IFL’s programmes on participants • Transfer of financial knowledge to action

• Applying knowledge to make sound financial decisions

• Long-term changes in financial behaviour

• Recommend improvements to pedagogy, content and method of delivery

• Provide specific advice on translating knowledge into action

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• Active ageing outreach (C3A)

• PA Seniors Academy

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Partnerships, Roadshows and workshops

Reaching Uninterested Segments

• Equipping social workers

• Talks for low income families at Family Service Centres

<Confidential>

RETIREES

PA Seniors Academy

Image from Today Online

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Thank you

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