Both the Financial Services Authority and the Basic Skills Agency are committed to supporting those individuals and organisations working to improve the financial capability of themselves and others. The development of the National Strategy for Financial Capability, coordinated by the Financial Services Authority, and the commissioning of a baseline survey into the financial capability of the UK, will both contribute strongly in shaping future progress in this area. Following the recommendations of the Adult Financial Literacy Advisory Group and "Skills for Life", the national strategy to improve adult literacy and numeracy, they were keen to develop a framework that outlined the skills and competences that were deemed necessary for financial capability. The result, the Adult Financial Capability Framework, launched for the first time in 2003, is a document which covers a broad range of money management and consumer issues. This current version is an update of the original framework taking into account how the world of finance and financial education changes over time. The framework is for all those involved in financial capability education including money advisers, teachers, trainers and helpers interested in improving financial capability skills, knowledge and understanding. It aims to bridge the gap between personal finance education which is taught within the school curriculum and full engagement with financial services through the Financial Services Authority adult learning programme "Learn on Line". The framework has three sections covering the three interrelated areas that go together to form financial capability: (1) Financial Knowledge and Understanding; (2) Financial Skills and Competence; and (3) Financial Responsibility. There are three levels in this framework: (1) Basic understanding and developing confidence; (2) Developing competence and confidence; and (3) Extending competence and confidence. The nine components are: (a) different types of money/payments; (b) income generation; (c) income disposal; (d) gathering financial information and record keeping; (e) financial planning--saving, spending, budgeting; (f) risk and return; (g) personal choices and the financial implications; (h) consumer rights, responsibilities and sources of advice; and (i) implications of finance. Appended are: (1) Glossary; (2) Resources; and (3) Organisations involved in developing the framework.