Flore-Anne Messy

Bio: Flore-Anne Messy is an academic researcher from Organisation for Economic Co-operation and Development. The author has contributed to research in topics: Financial literacy & Financial services. The author has an hindex of 11, co-authored 17 publications receiving 1137 citations.

Measuring Financial Literacy

Abstract: This paper presents the findings from an OECD International Network on Financial Education pilot study undertaken in 14 countries. The analysis focuses on variations in financial knowledge, behaviour and attitude across countries and within countries by socio-demographics.The results highlight a lack of financial knowledge amongst a sizeable proportion of the population in each of the countries surveyed. Furthermore, there is considerable room for improvement in terms of financial behaviour. Attitudes are shown to vary widely.These results will enable countries to identify needs and gaps in financial education provision and develop national policies or strategies. They also provide a sound evidence base for developing OECD recommendations and principles.

Mesurer la culture financière: Résultats de l'étude pilote de l'OCDE / INFE: Results of the OECD / International Network on Financial Education (INFE) Pilot Study

Abstract: Ce document presente les resultats de l’etude pilote effectuee par le Reseau international de l’education financiere (INFE) de l’OCDE dans 14 pays. L’analyse porte sur les differences en matiere de connaissance financieres, de comportements et d’attitudes des individus entre les pays ayant pris part au pilote et au sein de ces pays en fonction de criteres sociodemographiques. Les resultats revelent le manque de connaissances financieres d’une partie importante de la population dans tous les pays participant a l’etude. En outre, le comportement et les prises de decisions en matiere financiere de la population pourrait etre tres sensiblement ameliore. L’etude montre aussi de grandes variations en ce qui concerne les attitudes des individus dans ce domaine. Les resultats de cette etude permettront aux principaux responsables d’identifier les besoins et les lacunes de l’education financiere dans leur pays et de developper des politiques et des strategies nationales adaptees. Ils constituent egalement une source fiable de donnees permettant de developper les recommandations et principes de l’OCDE.

Promoting Financial Inclusion through Financial Education

Abstract: Financial inclusion is an international policy priority and demand-side initiatives including financial education have an important role to play in helping individuals to access and use appropriate, formal financial products. In 2010, under the support of the Russian Trust Fund for Financial Literacy and Education, the OECD/INFE launched a project on the role of financial education in financial inclusion. The results of this work show that low levels of financial inclusion are associated with lower levels of financial literacy. Recent research, including a broad stock take of INFE members, permitted to identify various ways in which policy makers are developing financial education policies for financial inclusion. Based on a review of approaches taken to deliver financial education for financial inclusion, this report highlights challenges faced and solutions found, and discusses the main lessons learnt and potential way forward.

Assessing financial literacy in 12 countries: an OECD/INFE international pilot exercise

Abstract: The OECD International Network on Financial Education has addressed the demand for an internationally comparable measure of financial literacy by developing a financial literacy questionnaire that can be used across a diverse range of countries. This questionnaire takes into account knowledge, behaviours, and attitudes related to personal finance and is designed to identify similarities and differences in levels of financial literacy around the world. It is currently being piloted in 12 countries, with the expectation that the final survey instrument will become a useful tool for policy-makers, academics, and financial education programme designers seeking to identify robust questions to assess financial literacy.

Current Status of National Strategies for Financial Education

Abstract: In both developing and developed economies, the awareness of the importance of financial education led to the development of an increasing number of tailored national strategies for financial education. These frameworks promote a smoother and more sustainable co-operation between interested parties and stakeholders, avoid duplication of resources and allow the development of articulated and tailored roadmaps with measurable and realistic objectives based on dedicated national assessments. The comparative analysis shows how countries overcame a series of challenges such as lack of resources, the identification a leading institution, gathering all stakeholders around common objectives and move efficiently to the operational phase. The experiences analysed in this report provide a global picture of the situation in 2011/12 and a selection of relevant solutions and tools to address these issues in a replicable way. This comparative report should be seen as a background document and as a complement to High-level Principles on National Strategies for Financial Education prepared by the OECD and its International Network on Financial Education (INFE).

The Economic Importance of Financial Literacy: Theory and Evidence

Abstract: This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare as well as policies intended to enhance levels of financial knowledge in the larger population. Next, we draw on recent surveys to establish how much (or how little) people know and identify the least financially savvy population subgroups. This is followed by an examination of the impact of financial literacy on economic decision-making in the United States and elsewhere. While the literature is still young, conclusions may be drawn about the effects and consequences of financial illiteracy and what works to remedy these gaps. A final section offers thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy.

The economic importance of financial literacy: theory and evidence

Abstract: This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research, which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare, as well as policies intended to enhance levels of financial knowledge in the larger population. Next, we draw on recent surveys to establish how much (or how little) people know and identify the least financially savvy population subgroups. This is followed by an examination of the impact of financial literacy on economic decision making in the United States and elsewhere. While the literature is still young, conclusions may be drawn about the effects and consequences of financial illiteracy and what works to remedy these gaps. A final section offers thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy. (JEL A20, D14, G11, I20, J26)

Financial Literacy Around the World: An Overview

Abstract: In an increasingly risky and globalized marketplace, people must be able to make well-informed financial decisions. Yet new international research demonstrates that financial illiteracy is widespread when financial markets are well developed as in Germany, the Netherlands, Sweden, Japan, Italy, New Zealand, and the United States, or when they are changing rapidly as in Russia. Further, across these countries, we show that the older population believes itself well informed, even though it is actually less well informed than average. Other common patterns are also evident: women are less financially literate than men and are aware of this shortfall. More educated people are more informed, yet education is far from a perfect proxy for literacy. There are also ethnic/racial and regional differences: city-dwellers in Russia are better informed than their rural counterparts, while in the U.S., African Americans and Hispanics are relatively less literate than others. Moreover, the more financially literate are also those most likely to plan for retirement. In fact, answering one additional financial question correctly is associated with a 3-4 percentage point higher chance of planning for retirement in countries as diverse as Germany, the U.S., Japan, and Sweden; in the Netherlands, it boosts planning by 10 percentage points. Finally, using instrumental variables, we show that these estimates probably underestimate the effects of financial literacy on retirement planning. In sum, around the world, financial literacy is critical to retirement security.

Financial Literacy around the World: An Overview

Abstract: In an increasingly risky and globalized marketplace, people must be able to make well-informed financial decisions. New international research demonstrates that financial illiteracy is widespread in both well-developed and rapidly changing markets. Women are less financially literate than men, the young and the old are less financially literate than the middle-aged, and more educated people are more financially knowledgeable. Most importantly, the financially literate are more likely to plan for retirement. Instrumental variables estimates show that the effects of financial literacy on retirement planning tend to be underestimated. In sum, around the world, financial literacy is critical to retirement security.