SlideShare a Scribd company logo
OECD EMPLOYER
BRAND
Playbook
1
PISA 2012
Students and Money
Financial literacy skills for the
21st Century
HIGHLIGHTS
9 July 2014
Launch
What is PISA?
What is Financial Literacy?
CONTEXT AND DEFINITION
PISA in brief
• Over half a million students…
– representing 28 million 15-year-olds in 65 countries/economies
… took an internationally agreed 2-hour test…
– 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
– Mathematics, reading, science, problem solving, financial literacy
… and responded to questions on…
– their personal background, their schools
and their engagement with learning and school
• Parents, principals and system leaders provided data on…
– school policies, practices, resources and institutional factors that
help explain performance differences .
Financial literacy: 29 000 students in
18 countries/economies took a two
hour paper test on financial literacy,
mathematics and reading
3
PISA in brief
PISA has developed the first international framework for
financial literacy. It defines financial literacy for youth as:
“Knowledge and understanding of financial concepts
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”.
4
5 Examples of what this might mean for 15 year olds
• If they go to the cinema, will they still have
enough money for the bus fare home?
Balance their
priority and plan
what to spend
money on
• … a motorbike will need fuel and tyres and
services and an insurance coverage.
Remember that
some of the
purchases have
implications
• …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 risk
and fraud
5
Why does financial literacy matter to
15-year-olds?
RELEVANCE
Big decisions start early:
such as continuing
education vs working
Shrinking welfare
systems; increased
personal responsibility
Shifting
demographics-
increased
longevity
Changing labour-markets
and reduced job security
Access to
financial products
at young ages
Increasingly
complex financial
markets
Relevance of financial literacy for 15-year-olds7
0 20 40 60 80
Shanghai-China
Croatia
Spain
Italy
Latvia
OECD average-13
Estonia
France
Slovak Republic
Israel
Russian Federation
Slovenia
United States
Czech Republic
Flemish Community (Belgium)
Australia
New Zealand
Most students receive money from some type of work
(PISA data)
…such as a holiday job, part-time work, or from working in a family business, or from occasional
informal jobs (e.g. baby-sitting or gardening) (%)
Students earning money outside of school hours
8
0 20 40 60 80 100
Poland
Slovak Republic
Israel
Italy
Croatia
Czech Republic
Latvia
United States
Shanghai-China
OECD average-13
Spain
Flemish Community (Belgium)
France
Australia
Estonia
New Zealand
Slovenia
Percentage of students with a bank account
Many students have a bank account (PISA data)9
0
10
20
30
40
50
60
70
80
China
RussianFederation
CzechRepublic
Estonia
SlovakRepublic
Poland
OECDaverage
Germany
Australia
UnitedStates
Belgium
NewZealand
Isreal
Italy
Spain
France
2010 or latest available year
1970 or first available year
Their decisions today will impact their future financial wellbeing:
Source: OECD Factbook 2013: Economic, Environmental and Social Statistics - © OECD 2012
Life expectancy is high, and has been growing for the last decade.
Young people today will need to be able to support themselves for many years.
10
What is in
the PISA financial literacy assessment?
FRAMEWORK AND ITEMS
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
PISA financial literacy assessment framework12
http://www.oecd.org/pisa/test/
Take 5 questions from the test yourself13
14
Sara receives this invoice in the mail
Sample Question: INVOICE
This is an easy item – Level 1 on the financial literacy
scale (below baseline)
Difficulty: 360
The task is to recognise the purpose of an invoice
Content: Money and transactions
Process: Identify financial information
INVOICE 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.
14
15
NEW OFFER
Mrs Jones has a loan of 8000 zeds with FirstZed Finance. The annual interest rate
on the loan is 15%. Her repayments each month are 150 zeds.
After one year Mrs Jones still owes 7400 zeds.
Another finance company called Zedbest will give Mrs Jones a loan for 10 000
zeds with an annual interest rate of 13%. Her repayments each month would
also be 150 zeds
NEW OFFER- Question 1
If she takes the Zedbest loan, Mrs Jones will immediately pay off her existing
loan.
What are two other financial benefits for Mrs Jones if she takes the Zedbest
loan?
1. …………………………………………………………………………………………………
2. …………………………………………………………………………………………………
Sample Question: NEW OFFER
Question type: Constructed response
Description: Recognise positive consequences of
transferring a loan to a lower interest rate
Content: Planning and managing finances
Process: Analyse information in a financial context
Difficulty: Full credit: 663 (Level 5)
15
16
SHARES
This graph shows the price of one Rich Rock share over a 12-month period.
Rich Rock Share Price
SHARES - Question Which statements about the graph are true?
Sample Question: SHARES
The best month to buy the shares was September. True / False
The share price increased by about 50% over the year. True / False
Price
(zeds)
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Time (months)
Question type: Complex Multiple Choice
Description: Analyse information in a financial context by c
onsidering the information in a line graph about an invest
ment product
Content: risk and reward
Process: analyse information in a financial context
Difficulty: 545 (Level 3)
16
Describing performance levels
Level 5
Level 4
Level 3
Level 2
Level 1
or below
Financial literacy
Performance levels
Top performers
Baseline
• Apply understanding of a wide range of financial terms and concepts
to contexts that may only become relevant to their lives in the long term.
• Analyse complex financial products and take into account features of financial
documents that are significant but unstated or not immediately evident.
• Describe the potential outcomes of financial decisions, showing an understand
ing of the wider financial landscape, such as income tax.
• Apply understanding of less common financial concepts and terms to
contexts that will be relevant to them as they move towards adulthood (e.g.
bank account management and compound interest in saving products).
• Interpret/ evaluate a range of detailed financial documents
• Explain the functions of less commonly used financial products.
• Make financial decisions taking into account longer-term consequences
• Apply understanding of commonly used financial concepts, terms and
products to situations that are relevant to them.
• Begin to consider the consequences of financial decisions
• Make simple financial plans in familiar contexts.
• Interpretate a range of financial documents
• Begin to apply knowledge of common financial products, terms and concepts.
• Recognise the value of a simple budget.
• Make financial decisions in contexts that are immediately relevant
• They show an understanding of relationships such as the amount something is
used and the costs incurred (such as running a car).• Identify common financial products and terms
• Interpret information relating to basic financial concepts.
• Recognise the difference between needs and wants; make simple decisions
• Recognise the purpose of everyday financial documents such as an invoice
17
How well prepared are young people to
make complex financial decisions?
THE RESULTS
Strong performance in
financial literacy
Low performance in financial literacy
Average performance
of 15-year-olds in
financial literacy
19
Shanghai-China
Flemish
Community
(Belgium)
EstoniaAustralia
New Zealand
Czech Republic Poland
Latvia
United States
France
Russian
FederationSlovenia Spain
Croatia
Israel
Slovak Republic
Italy
Colombia375
385
395
405
415
425
435
445
455
465
475
485
495
505
515
525
535
545
555
565
575
585
595
605
Mean score
15%
23%
30%
22%
10%
OECD average-13
Distribution of student performance
625 and
above
550 to
<625
475 to
<550
400 to
<475
Less than
400 points
Financial literacy
performance levels
Top performers
Baseline
20
Wide skill gaps within countries…
190
290
390
490
590
690
Colombia
SlovakRepublic
Israel
Italy
France
UnitedStates
Slovenia
Croatia
Spain
RussianFederation
OECDaverage-13
NewZealand
Latvia
Poland
CzechRepublic
Australia
Estonia
FlemishCommunity(Belgium)
Shanghai-China
Difference 75th and 25th 5th 95th
21
United States
Poland
New Zealand
Estonia
Croatia
Latvia
Slovak Republic
Czech Republic
France
Australia
Israel
Spain
Slovenia
Colombia
Russian Federation
Italy
R² = 0.1632
370
390
410
430
450
470
490
510
530
550
9 000 14 000 19 000 24 000 29 000 34 000 39 000 44 000 49 000
Scorepoints
Per capita GDP (USD converted using PPPs), 2010 or the latest year
GDP per capita explains only 16%
of the country level variation in
financial literacy
Differences only partially explained
by GDP per capita
22
How equitably
are learning opportunities distributed?
GROUPS TO BE TARGETED
Are there gender differences in financial literacy?
Italy
350
400
450
500
550
600
650
350 400 450 500 550 600 650
Girls'meanscore
Boys' mean score
Boys perform
better than girls
Girls perform
better than boys
17
22
28
22
11
14
24
32
22
8
0 10 20 30 40
Level 1
and below
Level 2
Level 3
Level 4
Level 5
Girls
Boys
OECD analysis on adults finds that men outperform women. PISA indicates
that among 15 year-olds, on average there are no gender differences
(except in Italy) but there are fewer girls at the top and the bottom
Policies should aim to enhance girls abilities and support underperforming boys
24
0
2
4
6
8
10
12
14
16
18
20
Estonia
Italy
RussianFederation
Croatia
Australia
FlemishCommunity
(Belgium)
Poland
Shanghai-China
Colombia
Latvia
CzechRepublic
OECDaverage-13
Israel
Spain
France
Slovenia
UnitedStates
SlovakRepublic
NewZealand
Financial literacy Mathematics Reading
Percentageofvariationinperformance
explainedbysocio-economicstatus
Socio-economic status matters
and in some countries more than for mathematics or reading25
-40
-20
0
20
40
60
80
100 France13
FlemishCommunity(Belgium)10
Slovenia8
Spain11
Estonia10
CzechRepublic2
OECDaverage-1311
Italy7
RussianFederation10
NewZealand27
UnitedStates22
Croatia12
Israel17
Latvia3
Australia20
Statistically significant Not statistically significant
Percentage of
immigrant
students
Difference between the scores of non-immigrant
students and immigrant students
(not accounting for other factors)
Students without an immigrant background perform
better than those who are 1st or 2nd generation migrants26
400
450
500
550
600
650
Shanghai-China
FlemishCommunity…
Estonia
NewZealand
Australia
Poland
CzechRepublic
Latvia
OECDaverage-13
Croatia
Spain
RussianFederation
UnitedStates
Slovenia
SlovakRepublic
Israel
Italy
Colombia
Students attending schools located in a village, hamlet or rural area (fewer than 3 000 people)
Students attending schools located in a city (100 000 or more
Students attending school in rural locations do less
well than those in urban locations
Mean scores of students in schools in different locations
27
How do students
develop financial literacy skills ?
Importance of reading and mathematics
as foundation skills
Relevance of experience and attitudes
Israel
Colombia
Shanghai-China
Latvia
UnitedStates
OECDaverage-13
Croatia
Poland
SlovakRepublic
Spain
Estonia
FlemishCommunity(Belgium)
NewZealand
RussianFederation
Australia
CzechRepublic
France
Italy
Slovenia
-30
-20
-10
0
10
20
30%
Mathematics and reading are foundations of financial literacy but
the situation is uneven across countries
Students' performance in financial
literacy is higher than their expected
performance in mathematics and reading
29
Students' performance in financial
literacy is lower than their expected
performance in mathematics and
reading
29
200
300
400
500
600
700
800
200 300 400 500 600 700 800
Relative financial literacy performance when compared to
mathematics
Financial literacy performance
Mathematics performance
Average relationship
between financial literacy
and mathematics
performance
Australia performs better-than-expected in financial literacy.
The difference between observed and expected performance is
larger among strong performers in mathematics
The Czech Republic perform better-
than-expected in financial literacy. The
difference between observed and
expected performance is larger among
low achievers in mathematics
France’s performance is lower-than-expected in
financial literacy. The gap between observed
and expected performance is similar at all
levels of mathematics performance.
30
Italy’s performance is lower-than-
expected in financial literacy. The gap
between observed and expected
performance is wider among high
achievers in mathematics.
Students in the Flemish
community (Belgium) and Israel
perform as high as expected in
financial literacy at all levels of
mathematics performance
30
-25
-15
-5
5
15
25
35
45
55
65
75 SlovakRepublic
Latvia
Italy
Croatia
Israel
Shanghai-China
CzechRepublic
Spain
UnitedStates
Australia
Poland
France
OECDaverage-13
Estonia
FlemishCommunity(Belgium)
Slovenia
NewZealand
Learning financial literacy through experience:
Relevance of bank account holding (accounting for socio-demographics)
On average across OECD countries and economies,
students who hold a bank account score 21 points
higher than students with similar socio-economic
status who do not.
31
0
10
20
30
40
50
60
70
80
90
Estonia
Shanghai-China
FlemishCommunity(Belgium)
Croatia
Latvia
RussianFederation
Poland
CzechRepublic
Italy
SlovakRepublic
Spain
Israel
OECDaverage-13
Slovenia
Australia
Colombia
France
NewZealand
UnitedStates
Score-point difference: Students who disagree minus students
who agree with the statement
"When confronted with a problem, I give up easily"
Attitude such as perseverance matters32
-5
0
5
10
15
20
25
30
35
40
45
50
Colombia
CzechRepublic
Poland
Israel
FlemishCommunity(Belgium)
Shanghai-China
Croatia
Italy
SlovakRepublic
Latvia
OECDaverage-13
Spain
RussianFederation
Australia
Estonia
UnitedStates
Slovenia
France
NewZealand
Statistically significant Not statistically significant 2
Openness to problem solving is also important
Score-point difference: Students who agree minus students who
disagree with the statement "I like to solve complex problems"
33
• This first PISA Financial Literacy exercise
revealed important gaps in the financial
competencies of students in most countries
and room for improvement in all
• It however does not provide a definitive
answer as to what model works best to
strengthen financial literacy
• More research and future PISA exercises will
be instrumental in further exploring and
gauging countries’ practices and policies.
The bottom line and next steps34
Thank you
Find out more about PISA at www.pisa.oecd.org
All national and international publications
The complete micro-level database
Find out more about the work of the OECD on financial
at www.financial-education.org
OECD publications, data and instruments
Databases of financial education initiatives and research
Email: Adrian.BLUNDELL-WIGNALL@oecd.org
Flore-anne.MESSY@oecd.org
Michael.DAVIDSON@oecd.org

More Related Content

Similar to Students and Money: Highlights from the OECD PISA Financial Literacy Assessment

PISA 2018 - Are Students Smart About Money?
PISA 2018  - Are Students Smart About Money?PISA 2018  - Are Students Smart About Money?
PISA 2018 - Are Students Smart About Money?
EduSkills OECD
 
Victor_Lau_Business Journal Article
Victor_Lau_Business Journal ArticleVictor_Lau_Business Journal Article
Victor_Lau_Business Journal Article
Victor Lau
 
LUSARDI Annamaria - 2014 Symposium to Advance Financial Literacy
LUSARDI Annamaria - 2014 Symposium to Advance Financial LiteracyLUSARDI Annamaria - 2014 Symposium to Advance Financial Literacy
LUSARDI Annamaria - 2014 Symposium to Advance Financial Literacy
OECD Directorate for Financial and Enterprise Affairs
 
p14-18 Financial Literacy
p14-18 Financial Literacyp14-18 Financial Literacy
p14-18 Financial Literacy
Michael Callahan, B.Sc., CIM, CFP
 
A powerpoint presentation about financial management and Financial literacy
A powerpoint presentation about financial management and Financial literacyA powerpoint presentation about financial management and Financial literacy
A powerpoint presentation about financial management and Financial literacy
JessaMontuyaMagan
 
Why it matters!2
Why it matters!2Why it matters!2
Why it matters!2
Angela Koponen
 
Global Money Week Talk on Young Adults and Money-03-15
Global Money Week Talk on Young Adults and Money-03-15Global Money Week Talk on Young Adults and Money-03-15
Global Money Week Talk on Young Adults and Money-03-15
Barbara O'Neill
 
Enrollment Mgt in Time of Challenge & Change
Enrollment Mgt in Time of Challenge & ChangeEnrollment Mgt in Time of Challenge & Change
Enrollment Mgt in Time of Challenge & Change
Dan Lundquist
 
Why A students work for C students
Why A students work for C studentsWhy A students work for C students
Why A students work for C students
Ajay Sawant
 
Ernit - Light Due Diligence Deck
Ernit - Light Due Diligence DeckErnit - Light Due Diligence Deck
Ernit - Light Due Diligence Deck
Aniket Patel
 
Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...
Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...
Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...
Proactive Advisor Magazine
 
Breakout: Promoting responsible use of credit among young people
Breakout: Promoting responsible use of credit among young peopleBreakout: Promoting responsible use of credit among young people
Breakout: Promoting responsible use of credit among young people
Wijzer in geldzaken
 
CommonCoreWebinar
CommonCoreWebinarCommonCoreWebinar
CommonCoreWebinar
ppageegd
 
Personal Finance Mexico
Personal Finance MexicoPersonal Finance Mexico
Personal Finance Mexico
juansalas
 

Similar to Students and Money: Highlights from the OECD PISA Financial Literacy Assessment (14)

PISA 2018 - Are Students Smart About Money?
PISA 2018  - Are Students Smart About Money?PISA 2018  - Are Students Smart About Money?
PISA 2018 - Are Students Smart About Money?
 
Victor_Lau_Business Journal Article
Victor_Lau_Business Journal ArticleVictor_Lau_Business Journal Article
Victor_Lau_Business Journal Article
 
LUSARDI Annamaria - 2014 Symposium to Advance Financial Literacy
LUSARDI Annamaria - 2014 Symposium to Advance Financial LiteracyLUSARDI Annamaria - 2014 Symposium to Advance Financial Literacy
LUSARDI Annamaria - 2014 Symposium to Advance Financial Literacy
 
p14-18 Financial Literacy
p14-18 Financial Literacyp14-18 Financial Literacy
p14-18 Financial Literacy
 
A powerpoint presentation about financial management and Financial literacy
A powerpoint presentation about financial management and Financial literacyA powerpoint presentation about financial management and Financial literacy
A powerpoint presentation about financial management and Financial literacy
 
Why it matters!2
Why it matters!2Why it matters!2
Why it matters!2
 
Global Money Week Talk on Young Adults and Money-03-15
Global Money Week Talk on Young Adults and Money-03-15Global Money Week Talk on Young Adults and Money-03-15
Global Money Week Talk on Young Adults and Money-03-15
 
Enrollment Mgt in Time of Challenge & Change
Enrollment Mgt in Time of Challenge & ChangeEnrollment Mgt in Time of Challenge & Change
Enrollment Mgt in Time of Challenge & Change
 
Why A students work for C students
Why A students work for C studentsWhy A students work for C students
Why A students work for C students
 
Ernit - Light Due Diligence Deck
Ernit - Light Due Diligence DeckErnit - Light Due Diligence Deck
Ernit - Light Due Diligence Deck
 
Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...
Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...
Marlow Felton & Chris Felton, CPA – Proactive Advisor Magazine – Volume 6, Is...
 
Breakout: Promoting responsible use of credit among young people
Breakout: Promoting responsible use of credit among young peopleBreakout: Promoting responsible use of credit among young people
Breakout: Promoting responsible use of credit among young people
 
CommonCoreWebinar
CommonCoreWebinarCommonCoreWebinar
CommonCoreWebinar
 
Personal Finance Mexico
Personal Finance MexicoPersonal Finance Mexico
Personal Finance Mexico
 

More from OECD Directorate for Financial and Enterprise Affairs

The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
OECD Directorate for Financial and Enterprise Affairs
 
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
OECD Directorate for Financial and Enterprise Affairs
 
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
OECD Directorate for Financial and Enterprise Affairs
 
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
OECD Directorate for Financial and Enterprise Affairs
 
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussionPro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussionPro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussionArtificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussionArtificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
OECD Directorate for Financial and Enterprise Affairs
 
OECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - HighlightsOECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - Highlights
OECD Directorate for Financial and Enterprise Affairs
 
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussionEx-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussionEx-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
OECD Directorate for Financial and Enterprise Affairs
 

More from OECD Directorate for Financial and Enterprise Affairs (20)

The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
 
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
 
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
 
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
 
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussionPro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
 
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussionPro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
 
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
 
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussionArtificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
 
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
 
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussionArtificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
 
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
 
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
 
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
 
OECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - HighlightsOECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - Highlights
 
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
 
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
 
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
 
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussionEx-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
 
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussionEx-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
 
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
 

Recently uploaded

Global markets, value chains, livelihoods & cassava production systems: impli...
Global markets, value chains, livelihoods & cassava production systems: impli...Global markets, value chains, livelihoods & cassava production systems: impli...
Global markets, value chains, livelihoods & cassava production systems: impli...
Jonathan Newby
 
Lucknow Girls Call Kakori 08630512678 Girls Call Service
Lucknow Girls Call Kakori 08630512678  Girls Call ServiceLucknow Girls Call Kakori 08630512678  Girls Call Service
Lucknow Girls Call Kakori 08630512678 Girls Call Service
akarshkumar98776
 
In BELA-BELA ^%[+27633867063*Abortion Pills For Sale In BELA-BELA Oakmoor
In BELA-BELA  ^%[+27633867063*Abortion Pills For Sale In BELA-BELA OakmoorIn BELA-BELA  ^%[+27633867063*Abortion Pills For Sale In BELA-BELA Oakmoor
In BELA-BELA ^%[+27633867063*Abortion Pills For Sale In BELA-BELA Oakmoor
periprospective
 
Blog Version 2024 Population Estimates Summary
Blog Version 2024 Population Estimates SummaryBlog Version 2024 Population Estimates Summary
Blog Version 2024 Population Estimates Summary
ARCResearch
 
The Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdf
The Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdfThe Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdf
The Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdf
Social Samosa
 
Girls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in City
Girls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in CityGirls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in City
Girls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in City
AK47 AK47
 
The Bank of Punjab. DigiBop Internet Banking. Discounts & Offers
The Bank of Punjab. DigiBop Internet Banking. Discounts & OffersThe Bank of Punjab. DigiBop Internet Banking. Discounts & Offers
The Bank of Punjab. DigiBop Internet Banking. Discounts & Offers
reema kushawaha
 
Penal code eng original of the Cameroon Government.pdf
Penal code eng original  of the Cameroon Government.pdfPenal code eng original  of the Cameroon Government.pdf
Penal code eng original of the Cameroon Government.pdf
les977
 
In Johannesburg ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...
In Johannesburg  ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...In Johannesburg  ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...
In Johannesburg ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...
ivory3872
 
GSA Schedules - What To Know Before Applying
GSA Schedules - What To Know Before ApplyingGSA Schedules - What To Know Before Applying
GSA Schedules - What To Know Before Applying
JSchaus & Associates
 
Lucknow Girls Call Kesar Bagh 08630512678 Girls Call Service
Lucknow Girls Call Kesar Bagh 08630512678  Girls Call ServiceLucknow Girls Call Kesar Bagh 08630512678  Girls Call Service
Lucknow Girls Call Kesar Bagh 08630512678 Girls Call Service
akarshkumar98776
 
gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...
gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...
gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...
gargtinna79
 
Item # 9 - Ratify Ord. # 1326 3-way Stop
Item # 9 - Ratify Ord. # 1326 3-way StopItem # 9 - Ratify Ord. # 1326 3-way Stop
Item # 9 - Ratify Ord. # 1326 3-way Stop
ahcitycouncil
 
Protection and referral for CBP members.ppt
Protection and referral for CBP members.pptProtection and referral for CBP members.ppt
Protection and referral for CBP members.ppt
Mohammed Nizam
 
Vidhi Vaishnav 23BSPHH01jgjgjggC0469.docx
Vidhi Vaishnav 23BSPHH01jgjgjggC0469.docxVidhi Vaishnav 23BSPHH01jgjgjggC0469.docx
Vidhi Vaishnav 23BSPHH01jgjgjggC0469.docx
RohanShekar
 
Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...
Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...
Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...
seenaoberoi
 
China The Next Ten Years by Dr Tim Dosemagen.pptx
China The Next Ten Years by Dr Tim Dosemagen.pptxChina The Next Ten Years by Dr Tim Dosemagen.pptx
China The Next Ten Years by Dr Tim Dosemagen.pptx
TimDosemagen
 
In Oakmoor ^%[+27633867063*Abortion Pills For Sale In Oakmoor Mesina
In Oakmoor  ^%[+27633867063*Abortion Pills For Sale In Oakmoor MesinaIn Oakmoor  ^%[+27633867063*Abortion Pills For Sale In Oakmoor Mesina
In Oakmoor ^%[+27633867063*Abortion Pills For Sale In Oakmoor Mesina
magentamoselle
 
Donate to girl child education by supporting seruds kurnool
Donate to girl child education by supporting seruds kurnoolDonate to girl child education by supporting seruds kurnool
Donate to girl child education by supporting seruds kurnool
SERUDS INDIA
 
Item # 8 - Advanced Water Well Technologies improv.
Item # 8 - Advanced Water Well Technologies improv.Item # 8 - Advanced Water Well Technologies improv.
Item # 8 - Advanced Water Well Technologies improv.
ahcitycouncil
 

Recently uploaded (20)

Global markets, value chains, livelihoods & cassava production systems: impli...
Global markets, value chains, livelihoods & cassava production systems: impli...Global markets, value chains, livelihoods & cassava production systems: impli...
Global markets, value chains, livelihoods & cassava production systems: impli...
 
Lucknow Girls Call Kakori 08630512678 Girls Call Service
Lucknow Girls Call Kakori 08630512678  Girls Call ServiceLucknow Girls Call Kakori 08630512678  Girls Call Service
Lucknow Girls Call Kakori 08630512678 Girls Call Service
 
In BELA-BELA ^%[+27633867063*Abortion Pills For Sale In BELA-BELA Oakmoor
In BELA-BELA  ^%[+27633867063*Abortion Pills For Sale In BELA-BELA OakmoorIn BELA-BELA  ^%[+27633867063*Abortion Pills For Sale In BELA-BELA Oakmoor
In BELA-BELA ^%[+27633867063*Abortion Pills For Sale In BELA-BELA Oakmoor
 
Blog Version 2024 Population Estimates Summary
Blog Version 2024 Population Estimates SummaryBlog Version 2024 Population Estimates Summary
Blog Version 2024 Population Estimates Summary
 
The Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdf
The Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdfThe Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdf
The Ministry of Information and Broadcasting Advisory Dated 03.07.2024.pdf
 
Girls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in City
Girls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in CityGirls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in City
Girls Call Noida 9873940964 Provide Best And Top Girl Service And No1 in City
 
The Bank of Punjab. DigiBop Internet Banking. Discounts & Offers
The Bank of Punjab. DigiBop Internet Banking. Discounts & OffersThe Bank of Punjab. DigiBop Internet Banking. Discounts & Offers
The Bank of Punjab. DigiBop Internet Banking. Discounts & Offers
 
Penal code eng original of the Cameroon Government.pdf
Penal code eng original  of the Cameroon Government.pdfPenal code eng original  of the Cameroon Government.pdf
Penal code eng original of the Cameroon Government.pdf
 
In Johannesburg ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...
In Johannesburg  ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...In Johannesburg  ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...
In Johannesburg ^%[+27633867063*Abortion Pills For Sale In Johannesburg Hazy...
 
GSA Schedules - What To Know Before Applying
GSA Schedules - What To Know Before ApplyingGSA Schedules - What To Know Before Applying
GSA Schedules - What To Know Before Applying
 
Lucknow Girls Call Kesar Bagh 08630512678 Girls Call Service
Lucknow Girls Call Kesar Bagh 08630512678  Girls Call ServiceLucknow Girls Call Kesar Bagh 08630512678  Girls Call Service
Lucknow Girls Call Kesar Bagh 08630512678 Girls Call Service
 
gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...
gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...
gpay.docxGoogle Pay, also known as GPay, is a mobile payments applicationGoog...
 
Item # 9 - Ratify Ord. # 1326 3-way Stop
Item # 9 - Ratify Ord. # 1326 3-way StopItem # 9 - Ratify Ord. # 1326 3-way Stop
Item # 9 - Ratify Ord. # 1326 3-way Stop
 
Protection and referral for CBP members.ppt
Protection and referral for CBP members.pptProtection and referral for CBP members.ppt
Protection and referral for CBP members.ppt
 
Vidhi Vaishnav 23BSPHH01jgjgjggC0469.docx
Vidhi Vaishnav 23BSPHH01jgjgjggC0469.docxVidhi Vaishnav 23BSPHH01jgjgjggC0469.docx
Vidhi Vaishnav 23BSPHH01jgjgjggC0469.docx
 
Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...
Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...
Pune Girls Call Pune 0X0000000X Payment On Delevery Cash Hot Premium Genuine ...
 
China The Next Ten Years by Dr Tim Dosemagen.pptx
China The Next Ten Years by Dr Tim Dosemagen.pptxChina The Next Ten Years by Dr Tim Dosemagen.pptx
China The Next Ten Years by Dr Tim Dosemagen.pptx
 
In Oakmoor ^%[+27633867063*Abortion Pills For Sale In Oakmoor Mesina
In Oakmoor  ^%[+27633867063*Abortion Pills For Sale In Oakmoor MesinaIn Oakmoor  ^%[+27633867063*Abortion Pills For Sale In Oakmoor Mesina
In Oakmoor ^%[+27633867063*Abortion Pills For Sale In Oakmoor Mesina
 
Donate to girl child education by supporting seruds kurnool
Donate to girl child education by supporting seruds kurnoolDonate to girl child education by supporting seruds kurnool
Donate to girl child education by supporting seruds kurnool
 
Item # 8 - Advanced Water Well Technologies improv.
Item # 8 - Advanced Water Well Technologies improv.Item # 8 - Advanced Water Well Technologies improv.
Item # 8 - Advanced Water Well Technologies improv.
 

Students and Money: Highlights from the OECD PISA Financial Literacy Assessment

  • 1. OECD EMPLOYER BRAND Playbook 1 PISA 2012 Students and Money Financial literacy skills for the 21st Century HIGHLIGHTS 9 July 2014 Launch
  • 2. What is PISA? What is Financial Literacy? CONTEXT AND DEFINITION
  • 3. PISA in brief • Over half a million students… – representing 28 million 15-year-olds in 65 countries/economies … took an internationally agreed 2-hour test… – 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 – Mathematics, reading, science, problem solving, financial literacy … and responded to questions on… – their personal background, their schools and their engagement with learning and school • Parents, principals and system leaders provided data on… – school policies, practices, resources and institutional factors that help explain performance differences . Financial literacy: 29 000 students in 18 countries/economies took a two hour paper test on financial literacy, mathematics and reading 3
  • 4. PISA in brief PISA has developed the first international framework for financial literacy. It defines financial literacy for youth as: “Knowledge and understanding of financial concepts 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”. 4
  • 5. 5 Examples of what this might mean for 15 year olds • If they go to the cinema, will they still have enough money for the bus fare home? Balance their priority and plan what to spend money on • … a motorbike will need fuel and tyres and services and an insurance coverage. Remember that some of the purchases have implications • …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 risk and fraud 5
  • 6. Why does financial literacy matter to 15-year-olds? RELEVANCE
  • 7. Big decisions start early: such as continuing education vs working Shrinking welfare systems; increased personal responsibility Shifting demographics- increased longevity Changing labour-markets and reduced job security Access to financial products at young ages Increasingly complex financial markets Relevance of financial literacy for 15-year-olds7
  • 8. 0 20 40 60 80 Shanghai-China Croatia Spain Italy Latvia OECD average-13 Estonia France Slovak Republic Israel Russian Federation Slovenia United States Czech Republic Flemish Community (Belgium) Australia New Zealand Most students receive money from some type of work (PISA data) …such as a holiday job, part-time work, or from working in a family business, or from occasional informal jobs (e.g. baby-sitting or gardening) (%) Students earning money outside of school hours 8
  • 9. 0 20 40 60 80 100 Poland Slovak Republic Israel Italy Croatia Czech Republic Latvia United States Shanghai-China OECD average-13 Spain Flemish Community (Belgium) France Australia Estonia New Zealand Slovenia Percentage of students with a bank account Many students have a bank account (PISA data)9
  • 10. 0 10 20 30 40 50 60 70 80 China RussianFederation CzechRepublic Estonia SlovakRepublic Poland OECDaverage Germany Australia UnitedStates Belgium NewZealand Isreal Italy Spain France 2010 or latest available year 1970 or first available year Their decisions today will impact their future financial wellbeing: Source: OECD Factbook 2013: Economic, Environmental and Social Statistics - © OECD 2012 Life expectancy is high, and has been growing for the last decade. Young people today will need to be able to support themselves for many years. 10
  • 11. What is in the PISA financial literacy assessment? FRAMEWORK AND ITEMS
  • 12. 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 PISA financial literacy assessment framework12
  • 14. 14 Sara receives this invoice in the mail Sample Question: INVOICE This is an easy item – Level 1 on the financial literacy scale (below baseline) Difficulty: 360 The task is to recognise the purpose of an invoice Content: Money and transactions Process: Identify financial information INVOICE 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. 14
  • 15. 15 NEW OFFER Mrs Jones has a loan of 8000 zeds with FirstZed Finance. The annual interest rate on the loan is 15%. Her repayments each month are 150 zeds. After one year Mrs Jones still owes 7400 zeds. Another finance company called Zedbest will give Mrs Jones a loan for 10 000 zeds with an annual interest rate of 13%. Her repayments each month would also be 150 zeds NEW OFFER- Question 1 If she takes the Zedbest loan, Mrs Jones will immediately pay off her existing loan. What are two other financial benefits for Mrs Jones if she takes the Zedbest loan? 1. ………………………………………………………………………………………………… 2. ………………………………………………………………………………………………… Sample Question: NEW OFFER Question type: Constructed response Description: Recognise positive consequences of transferring a loan to a lower interest rate Content: Planning and managing finances Process: Analyse information in a financial context Difficulty: Full credit: 663 (Level 5) 15
  • 16. 16 SHARES This graph shows the price of one Rich Rock share over a 12-month period. Rich Rock Share Price SHARES - Question Which statements about the graph are true? Sample Question: SHARES The best month to buy the shares was September. True / False The share price increased by about 50% over the year. True / False Price (zeds) Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Time (months) Question type: Complex Multiple Choice Description: Analyse information in a financial context by c onsidering the information in a line graph about an invest ment product Content: risk and reward Process: analyse information in a financial context Difficulty: 545 (Level 3) 16
  • 17. Describing performance levels Level 5 Level 4 Level 3 Level 2 Level 1 or below Financial literacy Performance levels Top performers Baseline • Apply understanding of a wide range of financial terms and concepts to contexts that may only become relevant to their lives in the long term. • Analyse complex financial products and take into account features of financial documents that are significant but unstated or not immediately evident. • Describe the potential outcomes of financial decisions, showing an understand ing of the wider financial landscape, such as income tax. • Apply understanding of less common financial concepts and terms to contexts that will be relevant to them as they move towards adulthood (e.g. bank account management and compound interest in saving products). • Interpret/ evaluate a range of detailed financial documents • Explain the functions of less commonly used financial products. • Make financial decisions taking into account longer-term consequences • Apply understanding of commonly used financial concepts, terms and products to situations that are relevant to them. • Begin to consider the consequences of financial decisions • Make simple financial plans in familiar contexts. • Interpretate a range of financial documents • Begin to apply knowledge of common financial products, terms and concepts. • Recognise the value of a simple budget. • Make financial decisions in contexts that are immediately relevant • They show an understanding of relationships such as the amount something is used and the costs incurred (such as running a car).• Identify common financial products and terms • Interpret information relating to basic financial concepts. • Recognise the difference between needs and wants; make simple decisions • Recognise the purpose of everyday financial documents such as an invoice 17
  • 18. How well prepared are young people to make complex financial decisions? THE RESULTS
  • 19. Strong performance in financial literacy Low performance in financial literacy Average performance of 15-year-olds in financial literacy 19 Shanghai-China Flemish Community (Belgium) EstoniaAustralia New Zealand Czech Republic Poland Latvia United States France Russian FederationSlovenia Spain Croatia Israel Slovak Republic Italy Colombia375 385 395 405 415 425 435 445 455 465 475 485 495 505 515 525 535 545 555 565 575 585 595 605 Mean score
  • 20. 15% 23% 30% 22% 10% OECD average-13 Distribution of student performance 625 and above 550 to <625 475 to <550 400 to <475 Less than 400 points Financial literacy performance levels Top performers Baseline 20
  • 21. Wide skill gaps within countries… 190 290 390 490 590 690 Colombia SlovakRepublic Israel Italy France UnitedStates Slovenia Croatia Spain RussianFederation OECDaverage-13 NewZealand Latvia Poland CzechRepublic Australia Estonia FlemishCommunity(Belgium) Shanghai-China Difference 75th and 25th 5th 95th 21
  • 22. United States Poland New Zealand Estonia Croatia Latvia Slovak Republic Czech Republic France Australia Israel Spain Slovenia Colombia Russian Federation Italy R² = 0.1632 370 390 410 430 450 470 490 510 530 550 9 000 14 000 19 000 24 000 29 000 34 000 39 000 44 000 49 000 Scorepoints Per capita GDP (USD converted using PPPs), 2010 or the latest year GDP per capita explains only 16% of the country level variation in financial literacy Differences only partially explained by GDP per capita 22
  • 23. How equitably are learning opportunities distributed? GROUPS TO BE TARGETED
  • 24. Are there gender differences in financial literacy? Italy 350 400 450 500 550 600 650 350 400 450 500 550 600 650 Girls'meanscore Boys' mean score Boys perform better than girls Girls perform better than boys 17 22 28 22 11 14 24 32 22 8 0 10 20 30 40 Level 1 and below Level 2 Level 3 Level 4 Level 5 Girls Boys OECD analysis on adults finds that men outperform women. PISA indicates that among 15 year-olds, on average there are no gender differences (except in Italy) but there are fewer girls at the top and the bottom Policies should aim to enhance girls abilities and support underperforming boys 24
  • 26. -40 -20 0 20 40 60 80 100 France13 FlemishCommunity(Belgium)10 Slovenia8 Spain11 Estonia10 CzechRepublic2 OECDaverage-1311 Italy7 RussianFederation10 NewZealand27 UnitedStates22 Croatia12 Israel17 Latvia3 Australia20 Statistically significant Not statistically significant Percentage of immigrant students Difference between the scores of non-immigrant students and immigrant students (not accounting for other factors) Students without an immigrant background perform better than those who are 1st or 2nd generation migrants26
  • 27. 400 450 500 550 600 650 Shanghai-China FlemishCommunity… Estonia NewZealand Australia Poland CzechRepublic Latvia OECDaverage-13 Croatia Spain RussianFederation UnitedStates Slovenia SlovakRepublic Israel Italy Colombia Students attending schools located in a village, hamlet or rural area (fewer than 3 000 people) Students attending schools located in a city (100 000 or more Students attending school in rural locations do less well than those in urban locations Mean scores of students in schools in different locations 27
  • 28. How do students develop financial literacy skills ? Importance of reading and mathematics as foundation skills Relevance of experience and attitudes
  • 29. Israel Colombia Shanghai-China Latvia UnitedStates OECDaverage-13 Croatia Poland SlovakRepublic Spain Estonia FlemishCommunity(Belgium) NewZealand RussianFederation Australia CzechRepublic France Italy Slovenia -30 -20 -10 0 10 20 30% Mathematics and reading are foundations of financial literacy but the situation is uneven across countries Students' performance in financial literacy is higher than their expected performance in mathematics and reading 29 Students' performance in financial literacy is lower than their expected performance in mathematics and reading 29
  • 30. 200 300 400 500 600 700 800 200 300 400 500 600 700 800 Relative financial literacy performance when compared to mathematics Financial literacy performance Mathematics performance Average relationship between financial literacy and mathematics performance Australia performs better-than-expected in financial literacy. The difference between observed and expected performance is larger among strong performers in mathematics The Czech Republic perform better- than-expected in financial literacy. The difference between observed and expected performance is larger among low achievers in mathematics France’s performance is lower-than-expected in financial literacy. The gap between observed and expected performance is similar at all levels of mathematics performance. 30 Italy’s performance is lower-than- expected in financial literacy. The gap between observed and expected performance is wider among high achievers in mathematics. Students in the Flemish community (Belgium) and Israel perform as high as expected in financial literacy at all levels of mathematics performance 30
  • 31. -25 -15 -5 5 15 25 35 45 55 65 75 SlovakRepublic Latvia Italy Croatia Israel Shanghai-China CzechRepublic Spain UnitedStates Australia Poland France OECDaverage-13 Estonia FlemishCommunity(Belgium) Slovenia NewZealand Learning financial literacy through experience: Relevance of bank account holding (accounting for socio-demographics) On average across OECD countries and economies, students who hold a bank account score 21 points higher than students with similar socio-economic status who do not. 31
  • 33. -5 0 5 10 15 20 25 30 35 40 45 50 Colombia CzechRepublic Poland Israel FlemishCommunity(Belgium) Shanghai-China Croatia Italy SlovakRepublic Latvia OECDaverage-13 Spain RussianFederation Australia Estonia UnitedStates Slovenia France NewZealand Statistically significant Not statistically significant 2 Openness to problem solving is also important Score-point difference: Students who agree minus students who disagree with the statement "I like to solve complex problems" 33
  • 34. • This first PISA Financial Literacy exercise revealed important gaps in the financial competencies of students in most countries and room for improvement in all • It however does not provide a definitive answer as to what model works best to strengthen financial literacy • More research and future PISA exercises will be instrumental in further exploring and gauging countries’ practices and policies. The bottom line and next steps34
  • 35. Thank you Find out more about PISA at www.pisa.oecd.org All national and international publications The complete micro-level database Find out more about the work of the OECD on financial at www.financial-education.org OECD publications, data and instruments Databases of financial education initiatives and research Email: Adrian.BLUNDELL-WIGNALL@oecd.org Flore-anne.MESSY@oecd.org Michael.DAVIDSON@oecd.org

Editor's Notes

  1. “Financial literacy in PISA is primarily conceived of as personal financial literacy, distinguished from economic literacy, which includes both broader concepts, such as the theories of demand and supply, market structures and so on. Financial literacy is concerned with the way individuals understand, manage and plan their own and their households’ financial affairs, and with their awareness and understanding of the overall financial and economic landscape they live in. It is also recognised that good understanding, management and planning on the part of individuals has some collective impact on the wider society in contributing to national and even global stability, productivity and development.” 13 OECD countries and economies: Australia, Belgium (Flemish), Czech Republic, Estonia, France, Israel, Italy, New Zealand, Poland, Slovak Republic, Slovenia, Spain, and the US 5 partner countries and economies: Shanghai-China, Colombia, Croatia, Latvia and the Russian Federation
  2. In practice a 15-year-olds’ might… - Estimate the amount of change they should get when they pay for something in cash, and remember to check - Make decisions about what to spend their money on, taking into account the things that they might really need to pay for. For example, if they go to the cinema, will they still have enough money for the bus fare home? If not, maybe they should buy pizza and invite friends round to theirs to watch a DVD instead? - Remember that some of the things that they buy will have ongoing costs. A games console will need new games, a motorbike will need fuel and tyres and services and so on. - Some emails that look like they came from their bank might not be legitimate , but they will know what to do if they are not sure.  - If their phone gets stolen, they will ask their parents if it is covered by their household insurance - Make an informed decision about credit: (those with higher levels of proficiency) …will know that if they use credit to buy a computer, they will have to pay interest on the loan as well as paying the advertised price for the computer. ..and they will realise that the less they repay of that loan each month, the more they will pay in interest - Understand risk diversification …they will be able to explain why the saying ‘don’t put all your eggs in one basket’ might apply to investment. Realise that buying something on credit is likely to make an item cost more in the long run. They will understand why the saying ‘don’t put all your eggs in one basket’ might apply to investment.
  3. Almost all students have access to some earned income at age 15.
  4. And many have a bank account
  5. Life expectancy is high, and growing. Young people of today will need to be able to support themselves for many years.
  6. .
  7. This chart illustrates the financial literacy scale, from below the OECD average, marked in red, to around the OECD average, marked in yellow, to high performance, marked in green
  8. The 16 countries (excluding Flemish community of Belgium and Shanghai-China).
  9. And, among students with comparable performance in mathematics and reading, boys perform better than girls in financial literacy in 11 out of 18 countries and economies.
  10. (more patterns can be added) Germany: same as Spain