This presentation by Adele Atkinson was made during session 4 at the High-level Conference on Global and European Trends in Financial Education held on 22-23 May 2014 in Istanbul, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm

1. OECD TOOLS TO MEASURE
FINANCIAL LITERACY AND
IDENTIFY CORE
COMPETENCIES
Adele Atkinson, PhD
Policy Analyst
Financial Education and Consumer Protection Unit
High-level conference on global and European trends in
financial education
22-23 May 2014 - Istanbul, Turkey

2. • Measuring Financial Literacy
– OECD/INFE measurement tool (use supported by
G20 leaders in 2013)+ used in international measure
in 2010; second one planned for 2015
– OECD PISA financial literacy assessment (future
participation encouraged by G20 leaders 2013 and
APEC leaders in 2012)
• Development of an international core-
competency framework for youth (draft expected to
be presented to G20 leaders in September 2014)
2
Outline

3. Behaviour
9 Q
Keeping
track of
money
Making
ends meet
Choosing
and using
products
Short and
long term
planning
Knowledge
8 Q
Simple and
compound
interest
Inflation-
time value
of money
Risk and
return
Risk
diversification
Attitudes
4 Q
Propensity
to save vs
spend
Time
preference
(present vs
future)
Risk
preference
(explanatory
variable)
Financial
inclusion
Awareness
of products
Holding
and using
products
Savings
habits
Socio-
demographic
information
Age
Gender
Education
Work
Income
3
Questionnaire content

4. Knowledge
Maximum of 8
points
(High score 6+)
Behaviour
Maximum of 9
points
(High score 6+)
Attitudes
Maximum of 5
points
High score is >3
2 combined
measures
1) Overall score
Maximum 22
2) Number of
high scores
4
Analysis of financial literacy scores

5. 5
% with high financial knowledge score
45% 46%
57%
61%
58%
69%
60%
51%
40% 41%
49%
33%
53%
57%
Albania
Armenia
CzechRepublic
Estonia
Germany
Hungary
Ireland
Malaysia
Norway
Peru
Poland
SouthAfrica
UnitedKingdom
BVI

6. 6
% with high financial behaviour score
39% 41%
48%
27%
67%
38%
57%
67%
59% 60%
43% 43%
51%
71%
Albania
Armenia
CzechRepublic
Estonia
Germany
Hungary
Ireland
Malaysia
Norway
Peru
Poland
SouthAfrica
United
Kingdom
BVI

7. 7
% with positive attitudes
69%
11%
62%
46%
63%
69%
49%
53%
57%
71%
27%
54%
49%
67%
Albania
Armenia
CzechRepublic
Estonia
Germany
Hungary
Ireland
Malaysia
Norway
Peru
Poland
SouthAfrica
UnitedKingdom
BVI

8.  An international measure of financial literacy of youth
 2012: Participation (voluntary) in 18 jurisdictions:
Australia, Belgium (Flemish), China-Shanghai,
Colombia, Croatia, Czech Republic, Estonia, France,
Israel, Italy, Latvia, New Zealand, Poland, Slovak
Republic, Slovenia, Spain, Russia, and USA
• Data on levels of financial literacy by
– country/economy
– maths/reading score
– socio-demographics
– experience with money
To be repeated in 2015
PISA cognitive assessment of
15-year-olds’ financial literacy

9. The PISA financial literacy assessment
framework: processes, content and context
Processes: mental strategies or cognitive
approaches
 Identify financial information
 Analyse information in a financial context
 Evaluate financial issues
 Apply financial knowledge and understanding
Content: areas of knowledge
and understanding
 Money and transactions
 Planning and managing finances
 Risk and rewards
 Financial landscape
Contexts: applicable
situations
 Education and work
 Home and Family
 Individual
 Societal

10. Level 1 
Level 2 
Level 3
Level 4
Level 5

Described proficiency scale
Level 2 is the baseline: i.e. minimum
level necessary for 15-year-old
students to participate effectively
and productively in society. Students
who fail to reach this level will
struggle to perform basic financial
tasks in real life.
Level 5 students can apply
their understanding of a
wide range of financial
terms and concepts to
contexts that may only
become relevant to their
lives in the long term.
(OECD 2014, forthcoming)

11. • Building on various resources:
– OECD/INFE work on financial education in
schools
– PISA financial literacy assessment framework
– PISA analysis and described proficiency scale
– National learning and assessment frameworks
– Expert knowledge and feedback from INFE
members
• Describing expected level of knowledge;
• awareness of key content; and
• behaviours and attitudes towards applying these
in real life situations
An international core-competency
framework, describing expected outcomes

12. • The availability of tools to measure financial literacy
among adults and youth makes it possible to:
– Described levels of financial literacy
– Compare across countries/groups/policies
– Identify changes over time
• Expert judgment and robust analysis can identify
proportions with sufficient financial literacy
• In-depth study can provide a description of core
competencies and the order in which they are developed
Conclusion

13. Questions? Comments?
Interested in participating in the 2015 adult
financial literacy measure?
Please contact:
adele.atkinson@oecd.org
OECD/INFE financial education publications and
International Gateway
www.financial-education.org
Thank you