The last financial crisis in 2008 has left an indelible mark on citizens’ perception of financial security and more so in their trust in financial service providers. Recent surveys and international trends show that inadequate financial knowledge and practical application thereof also contributes to the perception of insecurity. Nowadays new and increasingly complex financial products are marketed, hence it is indispensable to apprehend the inherent risks of the financial landscape, and manage them properly. Appropriate financial skills and motivation are essential for making good individual and family-level financial decisions. Those in possession of adequate financial knowledge are likely to respond to financial shocks in an appropriate way. Experience gained from the financial crisis also makes the dissemination of general financial literacy essential. The promotion of financial literacy and the development of related programmes are important and urgent at national level in order to avoid or prevent events that cause financial losses to consumers. Accordingly, the Hungarian Government has set, as an outstanding goal, the improvement of the citizens’ financial literacy. The strategy targeting this significant objective covers 7 years, from 2017 to 2023, breaking down its practical implementation into two-year consecutive action plans. One of the first action plan’s targets was to develop a strategy for sharing relevant financial information to citizens via public education and IT tools. That is the context and the main reason why an official website was created with the slogan “Smart Finance” (okosanapenzzel.hu).
The Hungarian strategic goals are as follows:
•To create the framework of strengthening and generalising genuine financial education within the public education system.
•To strengthen the basics of conscious financial behaviour and the households' resilience to financial stress.
•To create an attitude that fosters prudent financial decisions and to establish infrastructures supporting conscious financial consumer behaviour and make them widely known.
•To strengthen the attitude for provisioning for long term financial needs.
•To increase access to financial products and basic financial services, as well as the strengthen financial inclusion.
•To promote the wider use of modern cashless payment instruments.
•To support prudent borrowing.
The primary target group of the strategy and the website are students in the education, but it also intends to reach adults and pensioners. The strategy envisages support for a variety of vulnerable social groups, too.
Proper mastering of financial skills are essential to make citizens more confident, prudent and as well as making reasonable financial decisions. Taking optimal financial decisions ensures a stable and predictable vision for families. That is why it is crucial to establish, continuously develop and foster general financial literacy. Financial education should be strengthened both within and outside formal school education. The new official website is a platform of outside of public education system. Beyond its informative role, it provides background materials for teachers, contains links to other public institutions, and generally to all interested citizens in all age groups. It highlights other available applications in relevant topics.
|Award category:||new solutions to complex challenges - a public sector citizen-centric, sustainable and fit for the future - european or national level|
|Type of activity:|
|Keywords:||financial literacy, financial education|
|Short English description:||The promotion of financial literacy and the development of related programmes are important and urgent at national level in order to avoid or prevent events that cause financial losses to consumers. Accordingly, the Hungarian Government has set, as an outstanding goal, the improvement of the citizens’ financial literacy. The strategy targeting this significant objective covers 7 years, from 2017 to 2023, breaking down its practical implementation into two-year consecutive action plans|
|Organisation:||Ministry of Finance|
|Level of government:||national level|
|Size of organisation:||>100|
|Number of people involved:||1-5|
|EU membership:||EU member|