OECD/INFE tools for cross- country surveys of

Transcript:OECD/INFE tools for cross- country surveys of:
OECD/INFE tools for cross- country surveys of financial literacy Adele Atkinson, PhD Policy Analyst adele.atkinson@oecd.org 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 2 Questionnaire development process 3 2008/9 2010 2010/11 2011/12 Questionnaire content 4 Data collection 5 2009/10 2010/11 2011 2011 A large-scale, robust data collection process 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 6 Ensuring comparable data 7 Analysis of financial literacy scores 8 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) 9 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%) 10 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 11 Relationship between behaviour and knowledge 12 Relationship between behaviour and attitude 13 Financial attitude score Variations by socio-demographics Women typically have lower levels of knowledge. In some countries (but not all)