Ewart S Williams: Infusing financial literacy into the school curriculum
Opening remarks by Mr Ewart S Williams, Governor of the Central Bank of Trinidad and
Tobago, at the presentation of certificates for participant of the workshop "Infusing financial
literacy into the school curriculum" hosted by the National Financial Literacy Programme and
the Ministry of Education, Port-of-Spain, 7 August 2009.
* * *
I am truly delighted to be part of this ceremony which, for me, represents the formalization
of a strategic partnership between the Ministry of Education and the Central Bank - a
partnership dedicated to raising the level of financial literacy in the country.
As you know from its inception, the National Financial Literacy Programme (NFLP) initiated
a schools programme which ran concurrently with our regular work-place and public
programmes. Under our schools programme, the NFLP undertook financial literacy sessions
in almost every primary school in Trinidad and Tobago. For this school year, we did 488
primary schools covering 27,860 students. Also, as part of this programme we have just
concluded a secondary schools pilot programme with seven (7) secondary schools
involving 930 students.
The completion of the Train the Trainer Teachers' Workshop initiates a bold new phase in
our programme as it (hopefully) signals the formal inclusion of financial literacy as a
permanent part of the secondary schools curriculum.
As you may know ladies and gentlemen, the ongoing international financial crisis has brought
home to countries all over the world the critical importance of financial education in schools.
In the U.S. there is a growing consensus among policy-makers (and educators) that
country's lack of financial sophistication was one cause of the current economic
problems. These policymakers point to the fact that the economic recession found too
many households buried in debt, stuck with unaffordable mortgages, with far too-little
savings and stung by huge investment losses.
Back home, while we in the Bank were always convinced of the benefits of financial literacy
to our people and to our national aspirations, the severe economic slowdown with which we
are now confronted, as well as the recent challenges in our financial sector, have
underscored to us the need to ramp up the financial literacy programme - in fact, to
make it more of a crusade.
Current economic circumstances for example, have forced families to make ends meet, to
and generally to make difficult consumer choices - a
plan and budget their incomes,
situation for which many people are not prepared.
As for our own financial crisis, if there is one thing that Fantasy Tours, HCU, CLICO and
CIB had in common, it is that
"if it is too good to be true, it is, and may probably be
fraudulent.
Any institution that offers you rates of return that are way out of line with the market, is more
than likely taking you for a ride.
And while, through our NFLP, we will continue our work with adults to shift how they think
about personal finance and to help change their habits, the benefits of working with young
people and in their schools are overwhelming - the rationale is simple "catch them
early and change their path going into adulthood".
It is clear for instance that we need to start early to help our children understand the
relationship between risk and return.
Our schools are an excellent place to teach our children how compound interest works
- that it is great for depositors, but will extend the life and cost of your loan if you are the
borrower.
Our schools should teach our children the basics of debt and credit; how dangerous your
credit card could be, about the importance of paying your bills on time and the
implications of having bad credit. Teaching these concepts in school will save our children
considerable hardships in adulthood.
We must recognize ladies and gentlemen, that financial literacy is a life skill and we
usually learn life skills from our parents or through the school system. But in many cases
our parents lack the financial education themselves. Thus the important role for our
schools.
Teachers I would like to commend you, the teachers, who have participated in these
workshops, for sacrificing a week of your vacation in the interest of your pupils and hopefully
in your own interest since, I hope, you became more financially literate yourselves. I am
grateful that you opted to spend the week with us. I am told that from the moment the notice
was published in the newspapers, there was an immediate and enthusiastic response and
that you continued to demonstrate that enthusiasm throughout the workshops by your active
participation and by your advice and your input all of which helped to make the programme
more meaningful. The dedication that you have shown in this initiative puts a lie to the notion
that our teachers lack commitment. All of you are a credit to your profession. We at the
Central Bank are grateful to the principals of the four schools which were the venues for the
workshops - San Fernando East Secondary; Chaguanas North Secondary; Valencia High
School and St. Joseph's College, St Joseph; we are grateful to Petrotrin, who has been one
of our strongest supporters and sponsors from the inception of the programme. Our gratitude
also to Mr. Lloyd Ince and the staff of the Consulting Interface Ltd (TCIL) who trained
and managed the volunteers as well as to our regular facilitators, without whom the NFLP
would be hard pressed to meet the demand for sessions in communities and to the public. To
the four facilitators who conducted the workshops over the past two weeks, I say a special
thank you.
My sincere gratitude also to the Ministry of Education which has been a fervent supporter
and active participant in our programme. If the Central Bank's NFLP currently enjoys any
success in the schools, it is as a result of the unstinting collaboration of the Ministry,
principals and teachers.
Ladies and gentlemen, we in the Bank have always seen our role as initiating, and nurturing
the National Financial Literacy Programme, then passing it on to others to guarantee the
programme's sustainability. Accordingly, the infusion of the programme into the
secondary school curriculum is indeed a step in the right direction. Let me assure the
Ministry of Education of our continued support and collaboration in an expanded programme
to infuse financial literacy into the school curriculum at every level.
Ladies and Gentlemen, I thank you.