Transcript Document

OECD/INFE tools for
cross- country
surveys of financial literacy
Adele Atkinson, PhD
Policy Analyst
[email protected]
www.financial-education.org
With the support of the
Russian/World Bank/OECD
Trust Fund
Outline
• Questionnaire development
– the development process
– questionnaire content
• Data collection
– Final list of pilot countries
• Data analysis and results
– Some highlights: for more see the paper!
• Conclusions, outputs and future plans
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Questionnaire development process
Survey of INFE
members:
identify
questions,
survey
approaches,
analysis
methods
2008/9
Develop,
discuss, refine
and pilot a
questionnaire
2010
Analyse
the pilot
data,
collect
feedback
from pilot
countries
2010/11
Finalise the
questionnaire
and make
available for
widespread use
2011/12
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Questionnaire content
Behaviour
9Q
Knowledge
8Q
Attitudes
4Q
Financial
inclusion
Keeping
track of
money
Simple and
compound
interest
Propensity
to save vs
spend
Awareness
of products
Making
ends meet
Inflationtime value
of money
Choosing
and using
products
Short and
long term
planning
Risk and
return
Risk
diversification
Sociodemographic
information
Age
Gender
Time
preference
(present vs
future)
Holding
and using
products
Education
Work
Risk
preference
(explanatory
variable)
Savings
habits
Income
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Data collection
A large-scale, robust data collection
process
Invite INFE
members to pilot
the questionnaire
2009/10
Countries translate,
test and use
questionnaire in
large scale pilot
2010/11
2011
OECD collect
data from
pilot
countries and
create a
master
dataset
2011
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The pilot countries
14 countries drawn from 4 continents: Africa, Asia,
Europe, South America
Includes 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
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Ensuring comparable data
Data collected by professional
survey organisations in each
country using a robust method to
maximise comparability
• Careful translation to retain the meaning of
questions
• Target achieved sample of 1000+
individuals aged 18+
• Weighted data to reflect gender/ age
distribution
• Personal interviews (some online: Norway)
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Analysis of financial literacy scores
Knowledge
Maximum of 8
points
(High score 6+)
Behaviour
Maximum of 9
points
(High score 6+)
2 combined measures
1) Overall score
Maximum 22
2) Number of high
scores
Attitudes
Maximum of 5
points
High score is >3
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Financial knowledge
At least 30% of respondents in each of the 14 countries
scored less than 6 in the knowledge test (67% in RSA)
• Basic maths is not a problem: most respondents can do
a simple division (79% RSA)
• However, there are basic levels of knowledge with
serious weaknesses in every country
• Understanding the benefit of diversification and the
impact of compound interest are the key difficulties (e.g.
In RSA just 21% worked out interest after 1 year and then
showed understanding of the benefit of compounding
over 5 years)
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Financial behaviours
We looked for 9 positive behaviours. At least 30% of
respondents in each country exhibit fewer than 6 of
them. (in RSA 57% exhibited fewer than 6).
• Shopping around for financial products is uncommon (UK
most likely at just 16%)
• Setting long term goals and striving to achieve them is also
quite uncommon in some countries (e.g. Albania 30%)
• The proportion actively saving ranges from below 30% in
Hungary to 97% in Malaysia (RSA 53%)
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Attitudes
• Combining results from 3 questions shows that 54% of
respondents in RSA have attitudes that tend towards the
longer term compared with just 11% in Armenia
• Very few people in Armenia (8%) and Poland (19%) find
saving more satisfying than spending (RSA 48%)
• 60% of South Africans disagreed that they tend to live for
today and let tomorrow take care of itself
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Relationship between behaviour and knowledge
7.0
Malaysia
Averagel behaviour score
6.0
Norway
5.0
Peru
4.0
Poland
3.0
South
Africa
Financial knowledge score
2.0
0
1
2
3
4
5
6
7
8
United
Kingdom
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Relationship between behaviour and attitude
6.5
Financial
behaviour
score 6.0
Malaysia
Norway
5.5
Peru
5.0
Poland
4.5
South Africa
4.0
United
Kingdom
3.5
3.0
2.5
2.0
1
2
3
4
Financial
attitude score
5
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Variations by socio-demographics
• Women typically have lower levels of knowledge. In
some countries (but not all) they have lower
behaviour scores. In most countries women have
more positive attitudes towards the long term
• Higher income and higher education are associated with
higher overall scores, as is middle age
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Conclusions of pilot
• The OECD/INFE have created a survey instrument that
is highly flexible and applicable across a wide range of
countries
• The simple, replicable measures of financial literacy
allow analysis within and across countries and can be
applied whenever the survey is used
• Country level data allows identification of gaps and
needs; international data can identify good practices and
international priorities (e.g. gender differences)
• The results are very interesting – some worrying
findings, some findings that need further investigation,
some interesting variations
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Key outputs
Framework for the Development of Financial Literacy Baseline
Surveys: A First International Comparative Analysis, OECD Working
Papers on Finance, Insurance and Private Pensions, No. 1, OECD
Publishing.
Measuring Financial Literacy: Results of the OECD / International
Network on Financial Education (INFE) Pilot Study OECD Working
Papers on Finance, Insurance and Private Pensions, No. 15, OECD
Publishing.
Questionnaire and Guidance Notes A questionnaire that includes
guidance on how to undertake the survey and how to code the data for
analysis. The whole of the questionnaire should be used to enable
comparisons. It can be integrated into other surveys or used alone.
A set of supplementary questions A collection of additional questions
that may be of relevance to financial education policy in particular
countries. Any number of questions from this set can be used.
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Future plans
Further data collection
• Many countries are using/have used the questions: e.g.
Jamaica, Korea, Iceland, Thailand, Turkey, South Africa
again; or parts of it: Japan, New Zealand (knowledge)
• We will encourage a repeat measure with pilot countries
Additional analysis and reporting
• The OECD/INFE will continue to use the pilot data to inform
the work of the subgroups and related research; and publish
the results
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Thank you!
Comments and questions are welcome
[email protected]
Please also let us know if you have used any of our
questions, or intend to do so.
The questionnaire and guidance plus supplementary
questions are available on our website.
www.financial-education.org
See also http://www.finlitedu.org/ for outputs from the
Russian Trust Fund
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