OREANDA-NEWS. December 24, 2012. In 2013 the joint financial literacy project of the Citi Foundation and New Economic School will continue with a new series of courses in 8 cities across Russia. The courses will focuses on a variety of practical personal finance questions: “How to buy a car?” “How to satisfy one’s housing needs?” “How to save a million?” “Who needs insurance?” and “How to avoid falling victim to financial fraud?” The classes will be based on new video lessons which address their topics in a manner that is accessible and interesting for young people. The teachers will act as moderators of discussions arising based on the issues touched upon in the video lessons. The main objective of the courses is to instill in youth the ability to competently use financial services as they take steps to achieve specific goals.

The project plans anticipate the training of more than 60 university teachers, with 6400 students subsequently taking the financial literacy course.

Sergei Guriev, Rector of the New Economic School, said: “Personal finance, as a rule, is not included in the regular curriculum of schools and universities, despite the fact that one’s understanding of personal finance is a major determinant for success in life today. Our courses on financial literacy provide an opportunity for Russian youth to grasp the basic rules and nuances of forming a personal budget and using financial instruments.”

This project is a continuation of cooperation between NES and the Citi Foundation which began in 2008. Earlier as a part of this joint effort practical textbooks on financial literacy were created. Approximately 10,000 students and schoolchildren in Rostov-on-Don, Nizhniy Novgorod, Yekaterinburg, Samara, St. Petersburg and Moscow have taken the educational courses based on these books.

For more than a year Citi and the New Economic School have been leading an Internet project on financial literacy – www.Fgramota.org – with unique multimedia materials which make it possible to learn about personal finance through games and other interactive features. The e-book Financial Literacy, published on the portal, covers specific financial instruments (deposits, loans, shares, mutual funds, etc.) as well as the basics of financial planning and investment. The interactive glossary and tests help the reader effectively engage in self-study of the materials. The online investment game Portfolio provides an opportunity to gain practical skills in capital management using banking, stock exchange and insurance products.

Of the 120,000 visitors of the portal, 7400 people demonstrated good results in the Portfolio game and successfully completed the final test of the e-book. More than 7500 have joined the fan club of the project on Facebook and Vkontakte. The best suggestions put forward to improve the Portfolio game have implemented in the second version, the “people’s” version, of the game.

In 2012 surveys and in-depth interviews were carried out with students who took financial literacy courses organized by NES with the support of the Citi Foundation in 2010.

The survey participants noted that the course influenced their personal finance management strategies and helped them find out about new instruments for investment. Only one in six students who passed the financial literacy course cannot manage their problem with impulsive purchases. Of the respondents, 36% began to use new financial instruments within one and a half years of completion of the program. Four of five participants now have savings in one form or another. Assessing the strongest points of the study program, the students drew attention to the accessible presentation of materials, opportunity for live discussion with instructors and the practical use of the acquired knowledge.