OECD/INFE toolkit to measure financial literacy and inclusion Adele Atkinson, PhD OECD With the...
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Transcript of OECD/INFE toolkit to measure financial literacy and inclusion Adele Atkinson, PhD OECD With the...
OECD/INFE toolkit to measure financial literacy and inclusion
Adele Atkinson, PhDOECD
With the support of the Russian/World Bank/OECD Trust Fund
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Outline and overview of toolkit
Outline• Toolkit development• Outcomes• Future plans
Overview• Set of good practice questions• Supplementary question set• Guidance on undertaking a
survey
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Questionnaire development process
Survey of INFE members: identify
questions, survey
approaches, analysis methods
Develop, discuss and
refine a set of core questions
Undertake a large-
scale exercise to measure financial literacy
Finalise the questionnaire
and make available for widespread
use
2008/9 2010 2010/112011/12
OECD/INFE definition: “A combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing”
Existing surveys were scrutinised to identify good-practices and common themes & approaches
A range of national surveys on related topics were examined from around the world- including surveys from Australia, Austria, Canada, Iceland, Ireland, Indonesia, Italy, Malaysia, Netherlands, Singapore , the UK and USA.
A questionnaire has been developed based on existing approaches and good-practice questions
Behaviour
Keeping track of money
Making ends meet
Choosing and using products
Short and long term planning
Knowledge
Simple and compound
interest
Inflation- time value of money
Risk and return
Risk diversification
Attitudes
Propensity to save vs spend
Time preference (present vs
future)
Risk preference
(explanatory variable)
Financial inclusion
Awareness of products
Holding and using
products
Product choice
Socio-demographic information
Age
Gender
Education
Work
Income5
Additional questions
Why aren’t these in the main questionnaire?
• The core questionnaire is purposely short and focused
• The core questionnaire uses questions that can differentiate between levels of financial literacy
• Some questions are not applicable across all sectors of the population, or all countries
What do they cover?
• A wide range of topics e.g.
• knowledge related to particular products
• Certain behaviours, such as taking advice or making complaints (consumer protection related issues)
• Use and impact of credit• Understanding risk
A set of supplementary questions has also been developed to enable countries to undertake further exploratory study to
inform their financial education initiatives or National Strategies.
A common method of data collection
• Core questions to be used as a set, or placed before other questions when combined
• Careful translation to retain the meaning of questions
• Target achieved sample of 1000+ individuals aged 18+ (aiming for at least a 60% response rate)
• Weighted data to reflect gender/ age distribution• Personal interviews so that respondent’s literacy
levels are irrelevant• Additional guidance available in toolkit
Data to be collected by professional survey organisations in each country using a robust method to maximise comparability
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International measurement exercise
• 14 countries drawn from 4 continents agreed to use the core questionnaire developed by the OECD/INFE and submit the data for analysis;
• They included developed and emerging economies including middle (lower and upper), and high income economies
Armenia, Albania, BVI, Czech Republic, Estonia, Germany, Hungary, Ireland, Malaysia, Norway, Peru, Poland, South Africa, UK
Since the initial exercise a wide range of other countries have used the questionnaire, and Estonia and South Africa have repeated the measurement to track changes.
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Outcomes
• The measurement toolkit meets a need for simple instruments to collect comparable financial literacy data
• The survey instrument is highly flexible and applicable across a wide range of countries
• The core questionnaire is also applicable in a wide range of circumstances, across different socio-economic groups
• The questions are flexible enough to be used alone, or combined with the supplementary questions or other surveys
• The data can be used to create replicable measures of financial literacy that allow analysis within and across countries
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Future plans
Additional analysis and reporting• The OECD/INFE will continue to use the first dataset to inform
the work of the network and related research.
Further data collection and sharing of toolkit• Repeat the measure; both with original 14 countries and
others: this is already happening!• Collect translated questionnaires to share with other
interested countries• Encourage all countries to incorporate the core questions in
existing measurement exercises, and if possible, share the data with the OECD
Thank you
Questions, comments, further information:
OECD/INFE www.financial-education.org
Russian Trust Fund www.finlitedu.org