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OECD WORKING PAPERS ON FINANCE, INSURANCE AND PRIVATE PENSIONS
OECD Working Papers on Finance, Insurance and Private Pensions provide timely analysis and
background on industry developments, structural issues, and public policy in the financial sector, including
insurance and private pensions. Topics include risk management, governance, investments, benefit
protection, and financial education. These studies are prepared for dissemination in order to stimulate
wider discussion and further analysis and obtain feedback from interested audiences.
The papers are generally available only in their original language English or French with a summary in the
other if available.
OECD WORKING PAPERS ON FINANCE,
INSURANCE AND PRIVATE PENSIONS
are published on www.oecd.org/daf/fin/wp
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delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Ce document et toute carte qu'il peut comprendre ne préjugent en rien du statut de tout territoire, de la souveraineté
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Abstract/Résumé
MEASURING FINANCIAL LITERACY: RESULTS OF THE OECD INFE PILOT STUDY*
by Adele Atkinson and Flore-Anne Messy
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.
JEL codes: D12, D14, D18, D63
MESURER LA CULTURE FINANCIERE: RESULTATS DE L’ETUDE PILOTE DE L’OCDE INFE
par Adele Atkinson et Flore-Anne Messy
Ce document présente les résultats de l’étude pilote effectuée par le Réseau international de
l’éducation financière (INFE) de l’OCDE dans 14 pays. L’analyse porte sur les différences en matière de
connaissance financières, de comportements et d’attitudes des individus entre les pays ayant pris part au
pilote et au sein de ces pays en fonction de critères sociodémographiques.
Les résultats révèlent le manque de connaissances financières d’une partie importante de la population
dans tous les pays participant à l’étude. En outre, le comportement et les prises de décisions en matière
financière de la population pourrait être très sensiblement amélioré. L’étude montre aussi de grandes
variations en ce qui concerne les attitudes des individus dans ce domaine.
Les résultats de cette étude permettront aux principaux responsables d’identifier les besoins et les
lacunes de l’éducation financière dans leur pays et de développer des politiques et des stratégies nationales
adaptées. Ils constituent également une source fiable de données permettant de développer les
recommandations et principes de l’OCDE.
Codes JEL : D12, D14, D18, D63
* with the support of the Russia/World Bank/OECD Trust Fund
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................. 6
INTRODUCTION ......................................................................................................................................... 13
Participating countries and data collection ................................................................................................ 14
The structure and content of this paper ...................................................................................................... 14
FINANCIAL KNOWLEDGE ....................................................................................................................... 16
Survey questions designed to test knowledge ............................................................................................ 16
A financial knowledge score ...................................................................................................................... 18
FINANCIAL BEHAVIOUR ......................................................................................................................... 23
Financial behaviour across different domains ........................................................................................... 23
A score for financial behaviours ................................................................................................................ 28
FINANCIAL ATTITUDES ........................................................................................................................... 33
Attitudes and preferences: short term or longer term? ............................................................................... 33
Combining the various attitudes ................................................................................................................ 33
RELATIONSHIP BETWEEN BEHAVIOUR AND THE OTHER SCORES ............................................. 36
COMBINED MEASURES OF FINANCIAL LITERACY .......................................................................... 38
Segmenting the population ........................................................................................................................ 39
Developing an overall measure of financial literacy.................................................................................. 40
VARIATIONS BY SOCIO-DEMOGRAPHICS .......................................................................................... 42
Gender ........................................................................................................................................................ 43
Age ............................................................................................................................................................. 46
Income ....................................................................................................................................................... 48
Education level .......................................................................................................................................... 50
Attitude to risk ........................................................................................................................................... 52
Multivariate analysis .................................................................................................................................. 52
CONCLUSION AND NEXT STEPS............................................................................................................ 56
ANNEX ......................................................................................................................................................... 58
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Tables
Table 1. Correct responses to knowledge questions .............................................................................. 7
Table 2. Positive financial behaviours by country ................................................................................. 8
Table 3. Attitudes towards the longer term ........................................................................................... 9
Table 4. High score on each of the financial literacy components ...................................................... 10
Table 5. The 8 knowledge questions ................................................................................................... 17
Table 6. Creating a knowledge score ................................................................................................... 19
Table 7. Actively saving or buying investments in the past 12 months .............................................. 26
Table 8. Creating a behaviour score .................................................................................................... 29
Table 9. Regression results .................................................................................................................. 54
Table 10. Participating country contacts and details of sample ............................................................. 58
Table 11. Financial knowledge: division, time-value of money, interest paid on a loan ...................... 61
Table 12. Financial knowledge: interest plus principle, compound interest .......................................... 62
Table 13. Financial knowledge: risk and return, inflation, diversification ............................................ 63
Table 14. Behaviour: Before I buy something I carefully consider whether I can afford it .................. 64
Table 15. Behaviour: I pay my bills on time ......................................................................................... 64
Table 16. Behaviour: I keep a close personal watch on my financial affairs ........................................ 65
Table 17. Behaviour: I set long term financial goals and strive to achieve them .................................. 65
Table 18. Average behaviour score by country ..................................................................................... 66
Table 19. Attitude: I find it more satisfying to spend money than to save it for the long term ............. 66
Table 20. Attitude: I tend to live for today and let tomorrow take care of itself ................................... 67
Table 21. Attitude: Money is there to be spent ...................................................................................... 67
Table 22. Average combined attitude scores ......................................................................................... 67
Table 23. Financial literacy segments by gender ................................................................................... 68
Table 24. Financial Literacy Segments by Income................................................................................ 69
Figures
Figure 1. Country groupings by average financial knowledge scores .................................................. 20
Figure 2. Distribution of knowledge scores .......................................................................................... 21
Figure 3. Financial knowledge: Percentage scoring 6 or more ............................................................. 22
Figure 4. Responsible and has a household budget............................................................................... 25
Figure 5. Shopping around for financial products ................................................................................ 27
Figure 6. Borrowing to make ends meet ............................................................................................... 28
Figure 7. Country groupings by average financial behaviour scores .................................................... 30
Figure 8. Distribution of financial behaviour scores ............................................................................. 31
Figure 9. Financial behaviours: Percentage scoring 6 or more ............................................................. 32
Figure 10. Distribution of financial attitude scores ................................................................................. 34
Figure 11. Percentage of respondents with average score over 3 ........................................................... 35
Figure 12. Relationship between financial knowledge and behaviour.................................................... 37
Figure 13. Financial behaviour and attitudes .......................................................................................... 38
Figure 14. Financial Literacy Segments ................................................................................................. 40
Figure 15. Country groupings by average overall financial literacy scores ............................................ 41
Figure 16. High knowledge score by gender .......................................................................................... 43
Figure 17. High behaviour score by gender ............................................................................................ 44
Figure 18. High attitude score by gender ................................................................................................ 45
Figure 19. Mean overall score by gender ................................................................................................ 46
Figure 20. Financial literacy segments by age ........................................................................................ 47
Figure 21. Average overall score by income .......................................................................................... 49
Figure 22. Financial literacy segments by education .............................................................................. 51
Figure 23. Average overall scores by risk aversion ................................................................................ 52
