Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Students’ financial literacy:
results from PISA 2015
Wednesday 24 May 2017
OECD, Paris
PISA 2015 Financial Literacy:
Results in Brief
• On average across OECD countries and
economies, 22% of students do not
have basic financial skills
• Only about 12% of s...
Some 56% of 15-year-olds in participating OECD
countries and economies have a bank account,
19% have a prepaid debit card
...
• On average across participating OECD countries and
economies, 84% discuss money matters with their
parents at least once...
• PISA data reveal that 38% of the variation
in financial literacy is not explained by
mathematics and reading skills
• Ma...
PISA 2015 Financial Literacy:
Framework, Rationale
and Results in Detail
PISA in brief – 2015
In 2015, over half a million students…
- representing 28 million 15-year-olds in 72 countries/economi...
“knowledge and understanding of
financial concepts and risks, and the
skills, motivation and confidence to apply
such know...
What does financial literacy mean
for the lives of 15-year-olds?
•…if they go to the cinema, will they still have enough m...
Financial literacy content, context and processes
Content
Money and transactions
Planning and managing
finances
Risk and r...
Financial literacy content
Content
Money and
transactions
Planning and
managing finances
Risk and reward
Financial landsca...
The PISA financial literacy test
• In 2015, around 48 000 students were assessed in financial
literacy, representing about...
15
Sara receives this invoice in the mail
Sample Question: INVOICE
Content: Money and transactions, it involves awareness ...
16
Each month, Jane’s salary is paid into her bank account. This is Jane’s pay slip for July
Sample Question: PAY SLIP
Con...
17
Sara receives this invoice in the mail
Sample Question: INVOICE
This is a hard item – Level 5 on the
financial literacy...
18
David banks with ZedBank. He receives this e-mail message
Sample Question: BANK ERROR
Question 1: Which of these statem...
Students increasingly need
financial skills
Many young people face financial decisions and are
consumers of financial serv...
0
10
20
30
40
50
60
70
80
90
100
Chile
Poland
Russia
Italy
Lithuania
SlovakRepublic
B-S-J-G(China)
Spain
UnitedStates
OECD...
0
10
20
30
40
50
60
70
80
90
Italy
Spain
UnitedStates
Canadianprovinces
Chile
Australia
OECDaverage-10
SlovakRepublic
Russ...
• Percentage of students in Australia at bachelor’s,
master’s or doctoral levels who had a public
student loan in 2013/14
...
0 10 20 30 40 50 60 70 80 90
Peru
Brazil
Chile
Lithuania
Russian Federation
Slovak Republic
China
Italy
Belgium
Poland
Spa...
What the results tell us?
1. What are the current needs and gaps in financial literacy of
students across countries and within countries?
2. What ar...
Students’ performance
in financial literacy
What are the needs and gaps across and within countries?
Mean performance in
financial literacy
B-S-J-G (China)
Belgium (Flemish)
Canadian
provinces
Russia
Netherlands
Australia
U...
Figure IV.3.6
13 22 22 13
19 20 20 20 22 22
25
32 35 38
48
53
33 11 24 22
17 15 6 8
10 12 6
4 6 3
1
3
80
60
40
20
0
20
40
...
Figure IV.3.6
13 22 22 13
19 20 20 20 22 22
25
32 35 38
48
53
33 11 24 22
17 15 6 8
10 12 6
4 6 3
1
3
80
60
40
20
0
20
40
...
Variation within each country is wider than the variation between
countries at the mean
Figure IV.4.1
Percentage of studen...
Varying opportunities to improve
students’ financial literacy
What are the main factors (gender, socio-economic and immigr...
-30
-25
-20
-15
-10
-5
0
5
10
15
Lithuania
SlovakRepublic
Poland
Australia
Spain
Brazil
OECDaverage-10
Netherlands
Canadia...
0
10
20
30
40
50
60
Peru
Brazil
Lithuania
Chile
SlovakRepublic
Spain
Italy
Poland
Russia
UnitedStates
OECDaverage-10
Austr...
300
350
400
450
500
550
600
650
Peru117
Brazil78
Chile103
SlovakRepublic80
Lithuania71
Spain79
UnitedStates97
OECDaverage-...
440
450
460
470
480
490
500
510
Never or hardly ever Once or twice a month Once or twice a week Almost every day
Scorepoin...
Immigrant students score 26 points lower in financial literacy than
native-born students of similar socio-economic status
...
Is financial literacy only about
mathematics and reading?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Russia 45
Brazil 47
Slovak Republic 48
Italy 52
Canadian provinces 53
Lithuani...
Financial literacy skills may go beyond or
fall short of the ability to use the knowledge that students acquired
in compul...
Learning by doing
What are students’ current experiences with
money matters ?
Are these related to financial literacy?
0
10
20
30
40
50
60
70
80
90
100
Netherlands
Australia
Canadianprovinces
Belgium(Flemish)
OECDaverage-10
Italy
UnitedState...
On average, students who hold a bank account perform better in
financial literacy than students of similar socio-economic ...
0
1
2
3
4
5
6
7
Russia
Italy
SlovakRepublic
Canadianprovinces
Chile
Spain
Australia
Belgium(Flemish)
OECDaverage-10
Lithua...
Financial literacy and
financial decisions and life aspirations
How is financial literacy related to students’
financial b...
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SlovakRepublic
Belgium(Flemish)
Italy
Poland
Lithuania
OECDaverage-10
Canadian...
1.00
1.50
2.00
2.50
3.00
3.50
Try to borrow money
from a family
member
Try to borrow money
from a friend
Save up to buy it...
Top-performing students in financial literacy are more likely than low-
performing students to report that they expect to ...
Top-performing students in financial literacy are more likely than low-
performing students with similar characteristics t...
What do the results mean for policy?
Financial
literacy
skills for
all
students
Address the
needs of low-
performing
students
Tackle socio-
economic
inequaliti...
What are countries already doing?
An increasing number of countries is developing
targeted initiatives in and out of school
• 10 out of the 15 participating countries and economies
are implementing a national strategy for financial
education spec...
• Several countries started introducing some financial literacy
elements in the school curriculum into existing subjects
(...
• Videos, competitions, interactive tools, events
(money weeks, savings day), museums, serious
games
…complementary to sch...
• Continue to collect and share evidence on policy
effectiveness through the OECD/International
Network on Financial Educa...
www.oecd.org/finance/financial-education
SecretariatINFE@oecd.org
Thank you
Find out more about our work at www.oecd.org/p...
Students' Financial Literacy: Results from PISA 2015
Upcoming SlideShare
Loading in …5
×

Students' Financial Literacy: Results from PISA 2015

44,147 views

Published on

This presentation provides an overview of PISA 2015 Results (Volume IV): Students’ Financial Literacy. This assessment explores students’ experience with and knowledge about money and provides an overall picture of 15-year-olds’ ability to apply their accumulated knowledge and skills to real-life situations involving financial issues and decisions. Find the publication here http://www.oecd.org/education/pisa-2015-results-volume-iv-9789264270282-en.htm

Published in: Government & Nonprofit
  • Hey guys! Who wants to chat with me? More photos with me here 👉 http://www.bit.ly/katekoxx
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Students' Financial Literacy: Results from PISA 2015

  1. 1. Students’ financial literacy: results from PISA 2015 Wednesday 24 May 2017 OECD, Paris
  2. 2. PISA 2015 Financial Literacy: Results in Brief
  3. 3. • On average across OECD countries and economies, 22% of students do not have basic financial skills • Only about 12% of students across participating OECD countries and economies are top performers, as they can tackle the most difficult tasks Too many students lack basic financial skills 22%
  4. 4. Some 56% of 15-year-olds in participating OECD countries and economies have a bank account, 19% have a prepaid debit card Young people are already financial consumers and will soon encounter complex financial decision, like student loans Some 64% earn money from some type of work activity 56% 64% But fewer than one in three students have the skills to manage a bank account 31%
  5. 5. • On average across participating OECD countries and economies, 84% discuss money matters with their parents at least once a month • Students who do so tend to perform better in financial literacy Students acquire financial skills from their parents… But up to what their parents can transmit them • But financial skills are strongly related to the socio-economic background of their family • Advantaged students score 89 points higher in financial literacy than disadvantaged students 84% 89 score points
  6. 6. • PISA data reveal that 38% of the variation in financial literacy is not explained by mathematics and reading skills • Many features of financial literacy are unique to the subject • The symposium this afternoon will discuss several school programmes Schools are well positioned to teach students what they may not be able to learn from their parents or by themselves 38%
  7. 7. PISA 2015 Financial Literacy: Framework, Rationale and Results in Detail
  8. 8. PISA in brief – 2015 In 2015, over half a million students… - representing 28 million 15-year-olds in 72 countries/economies … took an internationally agreed 2-hour test in science, mathematics, reading, collaborative problem-solving and financial literacy … - Goes beyond testing whether students can reproduce what they were taught… … to assess students’ capacity to extrapolate from what they know and creatively apply their knowledge in novel situations - Total of 390 minutes of assessment material … and responded to questions on… - their personal background, their schools, their well-being and their motivation Parents, principals, teachers and system leaders provided data on: - school policies, practices, resources and institutional factors that help explain performance differences - 89,000 parents, 93,000 teachers and 17,500 principals responded
  9. 9. “knowledge and understanding of financial concepts and risks, and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve the financial well-being of individuals and society, and to enable participation in economic life” Financial literacy in PISA
  10. 10. What does financial literacy mean for the lives of 15-year-olds? •…if they go to the cinema, will they still have enough money for the bus fare home? Or would it be better to buy pizza and invite friends home? Balance their priority and plan what to spend money on •…a games console will need new games, a motorbike will need fuel, tyres and services Remember that some of the purchases have ongoing costs • …Some emails that look like they came from their bank might not be legitimate, they should know what to do if they are not sure Being alert to possible fraud •…If their phone gets stolen, they should ask their parents if it is covered by their household insurance Knowing what risk is and what insurance is meant for •…they should know that if they buy a computer on credit they will have to pay interest on the loan, on top of the advertised price for the compute Make an informed decision about credit
  11. 11. Financial literacy content, context and processes Content Money and transactions Planning and managing finances Risk and reward Financial landscape Processes Identifying financial information Analyse information in a financial context Evaluate financial issues Apply financial knowledge and understanding Contexts Education and work Home and family Individual Societal
  12. 12. Financial literacy content Content Money and transactions Planning and managing finances Risk and reward Financial landscape • Coins and notes • Different ways of making payments • Understanding bank statements • Saving and spending • Credit and debt • Financial decision making • Investment and saving • Diversification • Using credit • Volatility of the market • Exchange rates • Consumer rights and responsibilities • Understanding of the wider financial, econom ic and social system
  13. 13. The PISA financial literacy test • In 2015, around 48 000 students were assessed in financial literacy, representing about 12 million 15-year-olds in the schools of the 15 participating countries and economies • Students in countries and economies that participated in the financial literacy answered – a two-hour combination of tasks in science, reading and mathematics – A one-hour test in financial literacy (43 items) after the core assessment – Questions about their experience with money such as discussing money matters with parents, basic financial products and sources of money (through a ‘money management questionnaire’) – … in addition to the standard questions about their personal background
  14. 14. 15 Sara receives this invoice in the mail Sample Question: INVOICE Content: Money and transactions, it involves awareness of the different forms and purposes of money and handling simple monetary transactions such as everyday payments The main task is to know the purpose and demonstrate a basic understanding of an invoice This is an easy item – Level 1 on the financial literacy scale (below baseline) Question 1: Why was this invoice sent to Sarah? A. Because Sarah needs to pay the money to Breezy Clothing. B. Because Breezy Clothing needs to pay the money to Sarah. C. Because Sarah has paid the money to Breezy Clothing. D. Because Breezy Clothing has paid the money to Sarah.
  15. 15. 16 Each month, Jane’s salary is paid into her bank account. This is Jane’s pay slip for July Sample Question: PAY SLIP Content: Money and transactions and the context is education and work Question 1: How much money did Jane’s employer pay into her bank account on 31 July? A. 300 zeds B. 2500 zeds C. 2800 zeds D. 19600 zeds The main task is read the pay slip and to recognise that Jane’s employer will only pay net salary into her bank Process: Identify financial information This is a relatively hard item – Level 4 on the financial literacy scale
  16. 16. 17 Sara receives this invoice in the mail Sample Question: INVOICE This is a hard item – Level 5 on the financial literacy scale Content: Money and transactions This item focuses on students’ ability to apply financial knowledge and understanding Question 3: Sara notices that Breezy Clothing made a mistake in the invoice. Sara ordered and received two T-shirts, not three. The postage fee is a fixed charged. What will be the total of the new invoice? 131 Zeds
  17. 17. 18 David banks with ZedBank. He receives this e-mail message Sample Question: BANK ERROR Question 1: Which of these statements would be good advice for David? Dear ZedBank member, There has been an error on the ZedBank server and your Internet login details have been lost. As a result, you have no access to Internet banking. Most importantly your account is no longer secure. Please click on the link below and follow the instructions to restore access. You will be asked to provide your Internet banking details. https://ZedBank.com/ Reply to the e-mail message and provide his Internet banking details Yes / No Contact his bank to inquire about the e-mail message Yes / No If the link is the same as his bank’s website address, click on the link and follow the instructions Yes / No This is a hard item – Level 5 Content: financial landscape, because Internet banking is part of what students are likely to experience now or in the near future. This item focuses on students’ ability to evaluate financial issues
  18. 18. Students increasingly need financial skills Many young people face financial decisions and are consumers of financial services. They are likely to face growing complexity and risks in the financial marketplace as they move into adulthood.
  19. 19. 0 10 20 30 40 50 60 70 80 90 100 Chile Poland Russia Italy Lithuania SlovakRepublic B-S-J-G(China) Spain UnitedStates OECDaverage-10 Belgium(Flemish) Canadianprovinces Australia Netherlands % Students holding a bank account Students holding a bank account who perform below proficiency Level 4 More than 70% of students hold a bank account in Australia, Belgium (Flemish), the Canadian provinces and the Netherlands Table IV.5.13b At Level 4, students can apply their understanding of less common financial concepts and terms to contexts that will be relevant to them as they move towards adulthood, such as bank account management […]. They can interpret and evaluate a range of detailed financial documents, such as bank statements […] Students who have a bank account but do not reach proficiency Level 4
  20. 20. 0 10 20 30 40 50 60 70 80 90 Italy Spain UnitedStates Canadianprovinces Chile Australia OECDaverage-10 SlovakRepublic Russia Lithuania Poland B-S-J-G(China) Netherlands Belgium(Flemish) % Working outside school hours (e.g. a holiday job, part-time work) Working in a family business Occasional informal jobs (e.g. baby-sitting or gardening) Any work activity (working outside school hours and/or working in a family business and/or occasional informal jobs) Some 64% of students earn money from some formal or informal work activity on average across OECD Table IV.5.15 Percentage of students who receive money from:
  21. 21. • Percentage of students in Australia at bachelor’s, master’s or doctoral levels who had a public student loan in 2013/14 79% • Percentage of bachelor’s-degree students in the United States who had a public student loan in 2013/14 62% • Average amount of debt students graduate with in the Netherlands USD 18 000 • Average amount of debt students graduate with in Canada USD 12 000 In some countries, students nearing the end of compulsory education will soon decide whether to take a student loan Source: Education at a Glance 2016 0 10 20 30 40 50 Australia United States Netherlands Participating Canadian provinces % Percentage of 15-year-old students who perform at Level 4 and above At Level 4, students […] can make financial decisions taking into account longer- term consequences, such as understanding the overall cost implication of paying back a loan over a longer period […].
  22. 22. 0 10 20 30 40 50 60 70 80 90 Peru Brazil Chile Lithuania Russian Federation Slovak Republic China Italy Belgium Poland Spain Canada Netherlands Australia United States Made payments online using the Internet Made a transaction using a mobile phone Many young people use digital financial products Source: World Bank Global Findex, 2014 Percentage of young people age 15-24 who have: %
  23. 23. What the results tell us?
  24. 24. 1. What are the current needs and gaps in financial literacy of students across countries and within countries? 2. What are the main factors explaining the wide inequalities within country? 3. Is financial literacy only about mathematics and reading ? 4. What are students’ current experiences with money matters ? Is it related to financial literacy? 5. How is financial literacy related to students’ financial behaviors and future expectations? → Goal : Evidence to support effective policy action 5 research questions and a policy goal
  25. 25. Students’ performance in financial literacy What are the needs and gaps across and within countries?
  26. 26. Mean performance in financial literacy B-S-J-G (China) Belgium (Flemish) Canadian provinces Russia Netherlands Australia United StatesPoland Italy Spain Lithuania Slovak Republic Chile Peru Brazil 380 400 420 440 460 480 500 520 540 560 580 Mean score Figure IV.3.2
  27. 27. Figure IV.3.6 13 22 22 13 19 20 20 20 22 22 25 32 35 38 48 53 33 11 24 22 17 15 6 8 10 12 6 4 6 3 1 3 80 60 40 20 0 20 40 60 80 100 B-S-J-G(China) Russia Belgium(Flemish) Canadianprovinces Netherlands Australia Italy Poland UnitedStates OECDaverage-10 Spain Lithuania SlovakRepublic Chile Peru Brazil Students’ financial literacy by proficiency levels % Below Level 2, students can identify common financial products and terms and interpret information relating to basic financial concepts. They can recognise the difference between needs and wants and can make simple decisions on everyday spending. They can recognise the purpose of everyday financial documents such as an invoice and apply single and basic numerical operations (addition, subtraction or multiplication) in financial contexts that they are likely to have experienced personally. At Level 2, students begin to apply their knowledge of common financial products and commonly used financial terms and concepts. They can use given information to make financial decisions in contexts that are immediately relevant to them. They can recognise the value of a simple budget and can interpret prominent features of everyday financial documents. They can apply single basic numerical operations, including division, to answer financial questions. They show an understanding of the relationships between different financial elements, such as the amount of use and the costs incurred. At Level 3, students can apply their understanding of commonly used financial concepts, terms and products to situations that are relevant to them. They begin to consider the consequences of financial decisions and they can make simple financial plans in familiar contexts. They can make straightforward interpretations of a range of financial documents and can apply a range of basic numerical operations, including calculating percentages. They can choose the numerical operations needed to solve routine problems in relatively common financial literacy contexts, such as budget calculations. At Level 4, students can apply their understanding of less common financial concepts and terms to contexts that will be relevant to them as they move towards adulthood, such as bank account management and compound interest in saving products. They can interpret and evaluate a range of detailed financial documents, such as bank statements, and explain the functions of less commonly used financial products. They can make financial decisions taking into account longer-term consequences, such as understanding the overall cost implication of paying back a loan over a longer period, and they can solve routine problems in less common financial contexts. At 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. They can analyse complex financial products and can take into account features of financial documents that are significant but unstated or not immediately evident, such as transaction costs. They can work with a high level of accuracy and solve non-routine financial problems, and they can describe the potential outcomes of financial decisions, showing an understanding of the wider financial landscape, such as income tax.
  28. 28. Figure IV.3.6 13 22 22 13 19 20 20 20 22 22 25 32 35 38 48 53 33 11 24 22 17 15 6 8 10 12 6 4 6 3 1 3 80 60 40 20 0 20 40 60 80 100 B-S-J-G(China) Russia Belgium(Flemish) Canadianprovinces Netherlands Australia Italy Poland UnitedStates OECDaverage-10 Spain Lithuania SlovakRepublic Chile Peru Brazil Students’ financial literacy by proficiency levels % BANK ERROR - Evaluate a potential financial fraud and respond appropriately to a financial scam e-mail message – Level 5 INVOICE Question 2 - Identify a delivery cost that is explicitly stated on an invoice – Level 2 INVOICE Question 1 – Recognise the purpose of an invoice - Below Level 2 PAY SLIP - Read a pay slip and recognise that the employer will only pay net salary into the employee’s bank – Level 4 INVOICE Question 3 (partial credit) - Interpret various elements on the same invoice to correct a mistake in the billing – Level 3
  29. 29. Variation within each country is wider than the variation between countries at the mean Figure IV.4.1 Percentage of students at various percentiles on the financial literacy scale 200 300 400 500 600 700 B-S-J-G (China) 312 Belgium (Flemish) 291 Canadian provinces 295 Russia 232 Netherlands 312 Australia 309 OECD average-10 285 United States 280 Poland 262 Italy 249 Spain 265 Lithuania 266 Slovak Republic 311 Chile 274 Peru 276 Brazil 302 25th - 10th percentile 50th - 25th percentile 75th - 50th percentile 90th - 75th percentile Score-point difference between 90th and 10th
  30. 30. Varying opportunities to improve students’ financial literacy What are the main factors (gender, socio-economic and immigrant background) explaining the wide inequalities within country?
  31. 31. -30 -25 -20 -15 -10 -5 0 5 10 15 Lithuania SlovakRepublic Poland Australia Spain Brazil OECDaverage-10 Netherlands Canadianprovinces Peru Russia Belgium(Flemish) UnitedStates Chile B-S-J-G(China) Italy Before accounting for performance in other subjects After accounting for performance in mathematics and reading In most countries/economies there are no differences in financial literacy between boys and girls at the mean… Figure IV.4.4 Score-pointdifference Girls perform better Boys perform better Gender differences in financial literacy may be related different opportunities for learning, different contexts in which men and women grow up and live, and to a possible variation of these factors across generations. Difference between boys and girls
  32. 32. 0 10 20 30 40 50 60 Peru Brazil Lithuania Chile SlovakRepublic Spain Italy Poland Russia UnitedStates OECDaverage-10 Australia Netherlands Canadianprovinces Belgium(Flemish) B-S-J-G(China) Boys Girls … but in 9 countries and economies out of 15, more boys than girls are low performers Figure IV.4.5 0 10 20 30 40 50 60 Boys Girls Studentsbelow Level2 Studentsat Level5 % %
  33. 33. 300 350 400 450 500 550 600 650 Peru117 Brazil78 Chile103 SlovakRepublic80 Lithuania71 Spain79 UnitedStates97 OECDaverage-1089 Italy60 Poland73 Australia107 Netherlands104 Belgium(Flemish)110 Russia46 Canadianprovinces77 B-S-J-G(China)132 Scorepoints Top quarter of ESCS Third quarter of ESCS Second quarter of ESCS Bottom quarter of ESCS Difference between students in the top quarter and students in the bottom quarter of this index Socio-economically advantaged students score 89 points higher than disadvantaged students, on average across OECD, equivalent to more than one PISA proficiency level Table IV.4.11 Mean score, by quarters of the PISA index of economic, social and cultural status (ESCS)
  34. 34. 440 450 460 470 480 490 500 510 Never or hardly ever Once or twice a month Once or twice a week Almost every day Scorepoints Parents play a role in developing their children’s financial literacy not only through the resources that they make available to them but also through direct engagement Figure IV.5.1 Mean score, by students’ answers to the question: “How often do you discuss money matters (e.g. talk about spending, saving, banking, investment) with your parents?” Discussing money matters with parents at least sometimes is associated with higher financial literacy than never discussing the subject, after accounting for students’ socio- economic status But discussing very often may mean something else….
  35. 35. Immigrant students score 26 points lower in financial literacy than native-born students of similar socio-economic status Figure IV.4.10 -20 0 20 40 60 80 100 120 Australia25 Canadianprovinces34 UnitedStates23 Russia7 Italy8 Spain11 OECDaverage-1013 Netherlands11 Belgium(Flemish)14 Score-pointdifference After accounting for ESCS Before accounting for ESCS Percentage of students with an immigrant background
  36. 36. Is financial literacy only about mathematics and reading?
  37. 37. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Russia 45 Brazil 47 Slovak Republic 48 Italy 52 Canadian provinces 53 Lithuania 58 Spain 58 OECD average-10 62 Poland 62 Chile 62 Peru 68 B-S-J-G (China) 69 United States 70 Belgium (Flemish) 70 Netherlands 71 Australia 71 Variation uniquely associated with mathematics performance Variation uniquely associated with reading performance Variation associated with more than one domain Variation uniquely captured by the financial literacy assessment Total explained variation Student performance in financial literacy is correlated with performance in mathematics and reading, but around 38% of the score reflects factors that are uniquely captured by the financial literacy assessment Table IV.3.10a
  38. 38. Financial literacy skills may go beyond or fall short of the ability to use the knowledge that students acquired in compulsory education -40 -30 -20 -10 0 10 20 30 40 Lithuania Spain SlovakRepublic Poland Chile Italy OECDaverage-10 Netherlands Brazil Australia UnitedStates Peru Canadianprovinces Russia Belgium(Flemish) B-S-J-G(China) Score-pointdifference Students’ performance in financial literacy is lower than the performance of students with similar scores in mathematics and reading Students’ performance in financial literacy is higher than the performance of students with similar scores in mathematics and reading Figure IV.3.12 Difference between the actual financial literacy score and the score predicted by students’ performance in mathematics and reading Highest performing countries/economies
  39. 39. Learning by doing What are students’ current experiences with money matters ? Are these related to financial literacy?
  40. 40. 0 10 20 30 40 50 60 70 80 90 100 Netherlands Australia Canadianprovinces Belgium(Flemish) OECDaverage-10 Italy UnitedStates Spain B-S-J-G(China) Russia SlovakRepublic Lithuania Chile Poland % Student has both a bank account and a prepaid debit card Student has a bank account but no prepaid debit card Student has a prepaid debit card but no bank account Student earns money from a work activity Many students hold basic financial products or earn money from work Figure IV.2.1
  41. 41. On average, students who hold a bank account perform better in financial literacy than students of similar socio-economic status who do not have a bank account Figure IV.5.5 -20 0 20 40 60 80 100 SlovakRepublic Russia Lithuania Poland B-S-J-G(China) Chile UnitedStates OECDaverage-10 Italy Belgium(Flemish) Australia Spain Canadianprovinces Netherlands Score-pointdifference After accounting for socio-economic status Before accounting for socio-economic status Difference between students who have a bank account and students who do not
  42. 42. 0 1 2 3 4 5 6 7 Russia Italy SlovakRepublic Canadianprovinces Chile Spain Australia Belgium(Flemish) OECDaverage-10 Lithuania Poland Netherlands B-S-J-G(China) UnitedStates Oddsratios Increased likelihood of socio-economically advantaged students to hold a bank account Advantaged students are more likely to have a bank account Table IV.5.10 More than twice as likely to have a bank account Six times more likely to have a bank account
  43. 43. Financial literacy and financial decisions and life aspirations How is financial literacy related to students’ financial behaviors and future expectations?
  44. 44. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SlovakRepublic Belgium(Flemish) Italy Poland Lithuania OECDaverage-10 Canadian provinces Netherlands Spain Australia B-S-J-G(China) UnitedStates Russia Chile Not buy it Save up to buy it Try to borrow money from a friend Try to borrow money from a family member Buy it with money that really should be used for something else Most students would save if they want to buy something for which they do not have enough money Figure IV.6.1 Percentage of students who gave the following replies to the question: “Likelihood of students' response to the question “If you don’t have enough money to buy something you really want (e.g. an item of clothing, sports equipment) what are you most likely to do?”
  45. 45. 1.00 1.50 2.00 2.50 3.00 3.50 Try to borrow money from a family member Try to borrow money from a friend Save up to buy it Not buy it Oddsratio Level 2 or 3 Level 4 or 5 Students' financial literacy is associated with understanding the value of saving Figure IV.6.2 High performing students are more than twice as likely as low- performing students in financial literacy to choose the statement "Save up to buy it" rather than "Buy it with money that really should be used for something else“, after accounting for performance in mathematics and reading and other characteristics.
  46. 46. Top-performing students in financial literacy are more likely than low- performing students to report that they expect to complete university education – in some countries 0 0.5 1 1.5 2 2.5 3 3.5 4 Canadianprovinces Belgium(Flemish) Poland Brazil UnitedStates Russia B-S-J-G(China) Netherlands OECDaverage-10 Chile Lithuania Italy Spain Peru Australia Oddsratio Level 2 Level 3 Level 4 Level 5 Figure IV.6.5 Increased likelihood of students at various proficiency levels in financial literacy to expect to complete education at ISCED Level 5A or 6, after accounting for students performance in mathematics and reading and other characteristics These students may be more likely to see the value of investing in higher education
  47. 47. Top-performing students in financial literacy are more likely than low- performing students with similar characteristics to report that they expect to have a high-skilled occupation when they are 30 years old 0.8 1 1.2 1.4 1.6 1.8 2 B-S-J-G(China) Peru Canadianprovinces Poland Brazil Spain SlovakRepublic UnitedStates Chile OECDaverage-10 Lithuania Italy Russia Australia Netherlands Oddsratio Level 2 Level 3 Level 4 Level 5 Figure IV.6.6 These students may be more likely to see the value of investing in higher education to work in a high-skilled occupation
  48. 48. What do the results mean for policy?
  49. 49. Financial literacy skills for all students Address the needs of low- performing students Tackle socio- economic inequalities early on Provide equal opportunities for learning to boys and girls Help students make the most of available learning opportunities at school Target parents at the same time as young people Provide young people with safe opportunities to learn by experience outside of school Evaluate the impact of initiatives in and outside of school A multifaceted policy agenda
  50. 50. What are countries already doing? An increasing number of countries is developing targeted initiatives in and out of school
  51. 51. • 10 out of the 15 participating countries and economies are implementing a national strategy for financial education specifically addressing young people among their target audiences: … Australia, Brazil, Canada, Italy, the Netherlands, the Russian Federation, Spain, Peru and the United States .. And over 65 countries these days National strategies for financial education
  52. 52. • Several countries started introducing some financial literacy elements in the school curriculum into existing subjects (Australia, Brazil, Flemish Community of Belgium, Lithuania, Peru, Slovak Republic, Spain – Canada and the United states, depending on province/state) … but to what extent is the curriculum implemented? • Some examples of evaluation of financial education programmes in school (Brazil, Italy, Russia, Spain, US) …is it effective? evaluation needs to become systematic Initiatives in school
  53. 53. • Videos, competitions, interactive tools, events (money weeks, savings day), museums, serious games …complementary to school initiatives …can reach out-of-school young people … participation of non-profits and private sector to be monitored …again their impact needs to be evaluated more regularly Out of school initiatives
  54. 54. • Continue to collect and share evidence on policy effectiveness through the OECD/International Network on Financial Education (INFE) • PISA 2018 financial literacy: 21 countries Australia, Brazil, Bulgaria, Canada, Chile, Estonia, Finland, Georgia, Indonesia, Italy, Latvia, Lithuania, Netherlands, Peru, Poland, Portugal, Russian Federation, Serbia, Slovak Republic, Spain, United States • Possibility of a further assessment in 2021 Next steps
  55. 55. www.oecd.org/finance/financial-education SecretariatINFE@oecd.org Thank you Find out more about our work at www.oecd.org/pisa All publications and the complete micro-level database

×