OECD/INFE toolkit to measure financial literacy and inclusion

1. OECD/INFE toolkit to measure financial literacy and inclusion Adele Atkinson, PhD OECD With the support of the Russian/World Bank/OECD Trust Fund

2. 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

3. Questionnaire development process • OECD/INFE definition: “A combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing” 2008/9 2010 2010/11 2011/12

4. 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.

5. A questionnaire has been developed based on existing approaches and good-practice questions

6. Additional questions 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.

7. A common method of data collection

8. 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.

9. Outcomes • The measurement toolkit meets a need for simple instruments to collect comparable financial literacy data • The survey instrument is highly flexible andapplicableacross 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

10. 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

11. Thank you Questions, comments, further information: adele.atkinson@oecd.org OECD/INFE www.financial-education.org Russian Trust Fund www.finlitedu.org