Adele Atkinson - 2014 Conference on Global and European Trends in Financial Education in Istanbul


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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

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Adele Atkinson - 2014 Conference on Global and European Trends in Financial Education in Istanbul

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 13. Questions? Comments? Interested in participating in the 2015 adult financial literacy measure? Please contact: OECD/INFE financial education publications and International Gateway Thank you