FOR IMMEDIATE RELEASE
Citigroup Inc. (NYSE: C)
March 16, 2007
Citi Taiwan & EduCities Money Quotient Survey Reveals Inadequate Level of Financial Education in Elementary Schools
Taipei – Just as Emotional and Intelligence Quotient (EQ and IQ) can have a big influence on a person's future, so too can Money Quotient (MQ). This was the finding of a survey conducted by Citigroup and NGO, EduCities that measured the MQ levels of middle and high-grade elementary school students in Taiwan.
The survey also showed there is room for improvement in financial education in elementary schools and that there are regional disparities in levels of financial knowledge among Taiwan’s elementary schoolchildren.
Key findings:
- 18% of the schoolchildren surveyed said they learned how to manage money from their teachers.
- 45% learned from their parents
- 19% taught themselves
- And although 96% saved money, only 71% had a savings account,
- And 65% either didn’t have a savings account, or had one but didn’t use it.
- Levels of financial acumen varied greatly among elementary schoolchildren. Children in central Taiwan were more aware about money management basics thanks to parental and teacher support. They had lower levels of understanding however when it came to credit cards and interest rates.
- Most elementary schoolchildren had a good basic knowledge - 85% were aware that banks charge interest on loans, and 91% knew that payment in a credit card purchase occurred after the transaction was made. 88% knew that ATM functions included withdrawals, transfers and balance inquiries. The survey also revealed that nearly 40% of the children kept financial records.
- No significant difference in financial knowledge and behavior between boys and girls, except that more girls (43%) kept financial records than boys (33%).
Overall, the survey results illustrate a need for schools in Taiwan to improve their teaching of financial education. As well, it highlighted the importance of developing financial skills at an early age at home to enable children to distinguish between "needs" and "wants" to build a foundation for their future financial decisions and behavior.
To play their part, Citigroup and EduCities jointly launched the Citi Internet Financial Education Program in 2006. The program aims to teach children a number of financial basics covering saving, banking and understanding needs and wants. The initiative incorporates many features including cartoons and online classes managed by EduCities, a popular Internet platform for children. More than 18,000 school children have participated in an Internet course in its first year.
"As the world’s biggest financial institution, Citi supports financial education so that the next generation can have a good understanding about consumption and value," said Morris Li, Country Officer of Citi Taiwan.
"In addition to classroom education in high schools and elementary schools, our partnership with EduCities will help reach more children through Internet learning. Education has a long-lasting effect, and with our firm commitment to localization, Citi will continue to promote financial education at all levels."
EduCities Mayor, Ovid J. L. Tzeng said, "Through our educational platform combined with Citi's financial expertise, or goal is to make financial education available to many schools in Taiwan."
In the near future, Citigroup and EduCities will soon hold the 2007 Young Financial Professional Competition. Aspiring contestants can sign up on the Internet until April 22. The competition has two phases: an Internet preliminary and a final competition. The Internet preliminary will be held April 1-30. The 20 winning teams and their teachers will participate in the final competition on May 27. The top five teams will win prizes worth a total of NT$560,000. For more details about the competition, please see: http://www.educities.edu.tw/citigroup/2007.
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EduCities
EduCities conducted the first ever MQ survey on middle- and high-grade elementary students via the Internet over a two-month period. It collected results from 2,548 questionnaires completed by elementary school students around Taiwan.
Citi Financial Education
Based on the belief that knowledge is your greatest assetSM, the Citigroup Financial Education Program is a global, company-wide effort to identify, support and implement initiatives that help give individuals, families and communities the tools needed to make sound financial decisions. Citigroup's 10-year, $200 million global commitment is focused in three areas: Personal, Small Business and Institutional Financial Education. Additional information about Citigroup's Financial Education Program, including Citigroup Foundation guidelines, links and resources, and the Citigroup Financial Education Program Curriculum and Facilitator's Guide, may be found at: http://financialeducation.citigroup.com.
Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under the trademark red arc include: Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.