Financial literacy Definition and building blocks The investment is co-financed by the Republic of Slovenia and the European Union under the European Social Fund. Financial literacy | Definition and building blocks DEFINITION OF FINANCIAL LITERACY BUILDING BLOCKS OF FINANCIAL LITERACY Financial literacy is a person's ability to employ financial knowledge in order to: 1st BUILDING BLOCK • Use financial concepts and procedures in various life situations; Financial skills; understanding and use of financial concepts, procedures and • Analyse, substantiate, evaluate and effectively communicate his/her ideas and results when strategies; communication as the basis of financial literacy formulating, solving and interpreting financial problems in various life situations; • Make responsible/informed decisions by recognising the differences between desires, 1.1. Understands messages with financial contents capabilities and actual needs; 1.2. Knows and uses financial terminology and symbolism • Become aware of the role of financial skills and the importance of proper education in this field for a quality everyday and professional life. 1.3. Presents, substantiates and evaluates his/her own thought processes 1.4. Recognizes, understands and uses mathematical concepts in financial circumstances 1.5. Knows and uses appropriate procedures and tools under different circumstances List of abbrevations: 1.6. Predicts and assesses solutions, substantiates claims and decisions FP – financial literacy NA-MA POTI – Scientific and Mathematical Literacy: 1.7. Uses different strategies when solving problems relating to the field of finance The Development of Critical Thinking and Problem-solving 2nd BUILDING BLOCK Solving problems relating to the field of finance in various contexts (educational and work, home and family, personal, social) 2.1. Discusses various real life problems; 2.2. Discusses situations using mathematical modelling. | 2 Financial literacy | Definition and building blocks 1st BUILDING BLOCK Financial skills; understanding and use of financial concepts, procedures and strategies; communication as the basis of financial literacy 1.1. Understands messages with financial contents BASIC EDUCATION PRE-SCHOOL EDUCATION UPPER SECONDARY SCHOOL ages 1-6 FIRST EDUCATIONAL CYCLE SECOND EDUCATIONAL CYCLE THIRD EDUCATIONAL CYCLE ages 15-19 ages 6-9 ages 9-12 ages 12-15 a) (Receives) Understands simple a) (Receives) Understands simple a) (Receives) Understands simple a) (Receives) Understands simple, a) (Receives) Understands simple, oral, graphic messages with messages with financial and structured messages with structured and complex structured and complex financial contents. contents; financial contents; messages (financial documents, messages (financial documents, b) Independently obtains b) Sums up messages with financial data) with financial financial data) with financial information from oral and financial contents, extracts contents; contents; written sources. the essence and the required b) Uses appropriate reading b) Uses appropriate information, and creates a new strategies during comprehensive reading strategies during message; reading of financial texts and comprehensive reading of c) Independently obtains when solving tasks; financial texts and when solving information from oral and c) Sums up messages with tasks; written sources. financial contents, extracts c) Sums up messages with the essence and the required financial contents, extracts information, and creates a new the essence and the required message; information, and creates a new d) Independently obtains message; information from credible d) Independently obtains sources. information from credible sources. | 3 Financial literacy | Definition and building blocks 1st BUILDING BLOCK Financial skills; understanding and use of financial concepts, procedures and strategies; communication as the basis of financial literacy 1.2. Knows and uses financial terminology and symbolism BASIC EDUCATION PRE-SCHOOL EDUCATION UPPER SECONDARY SCHOOL ages 1-6 FIRST EDUCATIONAL CYCLE SECOND EDUCATIONAL CYCLE THIRD EDUCATIONAL CYCLE ages 15-19 ages 6-9 ages 9-12 ages 12-15 a) During conversation/symbolic a) When describing a situation, a) When describing a situation, a) Knows, understands and uses a) Knows, understands and uses play the learner uses some the learner uses some financial the learner uses some financial some financial terms* (see financial terms* (see Note everyday financial terms* terms* (see Note 1). terms* (see Note 2) and Note 2), symbols, acronyms or 2), symbols, acronyms or (see Note 1). symbols. abbreviations; abbreviations; b) Writes down a worded financial b) Writes down a worded financial message using symbols and vice message using symbols and vice versa; versa; c) Sensibly uses financial language c) Sensibly uses financial language in other contexts too. in other contexts too. Some financial terms are suggested below, which the preschool teacher/school teacher can choose from throughout the educational periods according to the situation or the subject matter. Note 1: Note 2: e.g. money (euro, cent); money distribution; coin; banknote; invoice; price; e.g. goods (essential, non-essential); bank office; deposit; electronic banking (privacy and security); types of bank payment; bank; bank account; cash machine; cash withdrawal; exchange accounts; handling of payment instruments (money transfer, payment of a Universal Payment Order (UPN), direct office; debit card; discount; saving; money box; allowance; charity; debit, etc.); ethical consumption; interests; annual interest rate; payment of interests; discount; credit (loan); spending (consumption). currency; exchange rate; receipts; expenses; lender; borrower; guarantor; secured loan; taxes; inflation/deflation; investments (funds); financial records; debt management; retirement planning; budget; insurances. | 4 Financial literacy | Definition and building blocks 1st BUILDING BLOCK Financial skills; understanding and use of financial concepts, procedures and strategies; communication as the basis of financial literacy 1.3. Presents, substantiates and evaluates his/her own thought processes BASIC EDUCATION PRE-SCHOOL EDUCATION UPPER SECONDARY SCHOOL ages 1-6 FIRST EDUCATIONAL CYCLE SECOND EDUCATIONAL CYCLE THIRD EDUCATIONAL CYCLE ages 15-19 ages 6-9 ages 9-12 ages 12-15 a) Gets involved in conversations a) Gets involved in conversations a) Participates in a discussion with a) Participates in a discussion with a) Participates in a discussion with about simple, everyday about everyday situations with financial contents; financial contents; financial contents; situations with financial financial contents; b) Assesses his/her own work b) Assesses his/her own work b) Assesses his/her own work contents; b) Assesses his/her own work according to the set criteria. according to the set criteria. according to the set criteria. b) Assesses his/her own work according to the set criteria. according to the set criteria. 1.4. Recognizes, understands and uses mathematical concepts in financial circumstances Note: see the descriptors under mathematical literacy 1.5. Knows and uses appropriate procedures and tools under different circumstances a) Learns about and researches a) Learns about and researches a) Knows and uses certain a) Knows and uses mathematical a) Knows and uses mathematical various simple everyday various everyday situations with mathematical procedures procedures and tools when procedures and tools when situations with financial financial contents by: observing, and tools when researching solving problems with financial solving problems with financial contents by: observing, one-to-one-corresponding, situations and solving tasks with contents (e.g. when buying and contents (e.g. when taking out describing, one-to-one- comparing, sorting and financial contents; selling various goods, when a loan, when buying and selling corresponding, comparing, organizing elements, etc.; b) Learns about practical saving money, at sales, etc.); various goods, when saving sorting, organizing, etc. b) Uses mathematical procedures financial procedures (e.g. cash b) Knows practical financial money, etc.); and tools when solving tasks withdrawal/deposit, paying procedures (e.g. choosing a b) Knows and uses practical with financial contents. payment orders, etc.). bank account, cash withdrawal, financial procedures (e.g. cash deposit, dedicated savings, opening a bank account, setting etc.). up a direct debit, financial security planning, etc.). | 5 Financial literacy | Definition and building blocks 1st BUILDING BLOCK Financial skills; understanding and use of financial concepts, procedures and strategies; communication as the basis of financial literacy 1.6. Predicts and assesses solutions, substantiates claims and decisions BASIC EDUCATION PRE-SCHOOL EDUCATION UPPER SECONDARY SCHOOL ages 1-6 FIRST EDUCATIONAL CYCLE SECOND EDUCATIONAL CYCLE THIRD EDUCATIONAL CYCLE ages 15-19 ages 6-9 ages 9-12 ages 12-15 a) Expresses his/her desires and a) Makes and explains his/her a) Suggests solutions based on the a) Suggests solutions based on the a) Suggests solutions based on the assesses the possibilities of financial decisions; data, experience and financial data, experience and financial data, experience and financial realizing them. b) Assesses desires and adapts knowledge; knowledge; knowledge; their realization to his/her b) Assesses desires and adapts b) Assesses desires and adapts b) Assesses desires and adapts financial capabilities. their realization to his/her their realization to his/her their realization to his/her financial capabilities; financial capabilities; financial capabilities; c) Makes and evaluates his/her c) Understands the differences c) Understands the differences financial decisions. between desires, needs and between desires, needs and financial capabilities in life financial capabilities in life situations; situations; d) Makes and evaluates his/her d) Makes and evaluates his/her financial decisions and assesses financial decisions and assesses the financial consequences. the financial consequences. 1.7. Uses different strategies when solving problems relating to the field of finance a) Uses known strategies when a) Uses known mathematical a) Uses known mathematical a) Uses different mathematical a) Uses sensible mathematical solving situations. strategies when solving strategies when solving strategies when solving strategies when solving problems; problems; problems; problems; b) Forms different questions based b) Forms different questions and b) Forms different questions and b) Forms different questions and on the given situations; similar problems based on the similar problems based on the new problems based on the c) Assesses the suitability of given situations or problems; given situations or problems; given situations or problems; implemented strategies when c) Assesses the suitability of c) Assesses the suitability of c) Assesses the suitability of solving problems; the choice of strategies when the choice of strategies when the choice of strategies when d) Experiences problem solving solving problems; solving problems; solving problems; as a challenge and a creative d) Experiences problem solving d) Experiences problem solving d) Experiences problem solving activity. as a challenge and a creative as a challenge and a creative as a challenge and a creative activity. activity. activity. | 6 Financial literacy | Definition and building blocks 2nd BUILDING BLOCK Solving problems relating to the field of finance in various contexts (educational and work, home and family, personal, social) 2.1. Discusses various real life problems; 2.2. Discusses situations using mathematical modelling. Descriptors of the 2nd building block of mathematical literacy apply. | 7 Collection NA-MA POTI ISSN 2820-4182 Collection editor: Jerneja Bone Financial literacy Definition and building blocks Original title: Finančna pismenost; Opredelitev in gradniki Authors: mag. Mateja Sirnik, Vesna Vršič, Irena Simčič, Fanika Fras Berro, dr. Francka Lovšin Kozina, dr. Nik Stopar, mag. Simona Pustavrh, Simona Vreš, Ana Kretič Mamič, Viktorija Ternar, Kristina Angelov Troha, Danica Petric, Tanja Kokalj, dr. Simon Brezovnik Translation: Ensitra prevajanje, Brigita Vogrinec Škraba, s. p. Design: Simon Kajtna Layout: ABO grafika, d. o. o., Igor Kogelnik Published by: Zavod RS za šolstvo Representative: dr. Vinko Logaj On-line edition Ljubljana, 2022 Available: https://www.zrss.si/pdf/Financna_pismenost_gradniki_ANG.pdf The investment is co-financed by the Republic of Slovenia and the European Union under the European Social Fund. Publication was created in a project NA-MA POTI, 2016–2022, project leader: Jerneja Bone. Kataložni zapis o publikaciji (CIP) pripravili v Narodni in univerzitetni knjižnici v Ljubljani COBISS.SI-ID 121320451 ISBN 978-961-03-0721-1 (PDF) | 8 | 9