OECD/INFE Toolkit for financial literacy/financial inclusion

• Context:
• The study:
• Key findings:
• Points to consider

Context:

The original OECD/INFE (International Network on Financial Education) toolkit for measuring financial literacy and financial inclusion was developed from a 2009 working paper looking at the development of financial literacy baseline surveys, along with national surveys, international research and expert interviews and guidance. It was accepted and incorporated by G20 leaders in September 2013 before being rolled out in 2015. This summary introduces the updated version, released in 2018. Numerous modifications and changes have been made since the 2015 addition, reflecting changes in the ‘state of knowledge’ and the rapidly diversifying financial landscape. The overriding aim has been to create a survey that provides international comparisons on new and emerging financial trends and topics, while retaining the strength and complexity of data needed to inform national education strategies.

The study:

This 2018 version of the toolkit is based on the OECD/INFE definition of financial literacy as ‘a combination of awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing’. The main aim of the toolkit is to effectively measure financial literacy robustly and in a replicable fashion across different economies. The questions are mainly drawn from existing surveys, and have been tested and corroborated by OECD/INFE experts. The authors are confident that they represent good practice in financial literacy and financial inclusion measurement. Results from these OECD surveys have been published in separate OECD reports, which are also available through the Evidence Hub.

The toolkit provides a questionnaire that is designed to benchmark relevant information about financial literacy and financial inclusion within a country, while also allowing comparisons across countries. It is suggested that surveys should be of adults aged between 18 and 79. The interviews with participants should be face-to-face or by telephone, though in countries with high levels of internet penetration online questionnaires may be used. It is suggested that the minimum achieved sample from each survey should be 1,000 participants. The toolkit also contains guidance on issues to consider when commissioning fieldwork, including: achieving a robust sample; tailoring and preparing the questionnaire for fieldwork; issues in the field and surrounding data collection; data handling and preparation for analysis; and data analysis and reporting.

Key findings:

This policy tool draws heavily on content from existing national surveys, and incorporates:

• Methodological guidance.
• A questionnaire designed to capture information about financial behaviours, attitudes, and knowledge to accurately measure both a baseline and continuing levels of financial literacy and inclusion:
  • Questions cover planning and managing finances, choosing and using financial products, financial knowledge and a range of attitudes and behaviours that impact on financial literacy and financial wellbeing.
  • The questionnaire includes five financial wellbeing questions used in a short financial wellbeing survey from the Consumer Financial Protection Bureau in the US, as well as questions influenced by OECD work on financial wellbeing.
  • Questions on digital finance and crypto-currencies have been included, as well as questions on online fraud and scams.
  • Standardised socio-demographic questions are also built-in.
• A list of all questions included in the toolkit, with advice on how financial literacy scores should be created.
• Guidance on briefing interviewers and discussion around digital surveys.

The aim is that institutions use the toolkit to collect robust information that can be used to identify key target groups and prioritise new initiatives and interventions within countries, while it is also designed to provide cross-country comparisons to allow countries to benchmark themselves against other countries with similar characteristics. Institutions are encouraged to share their information with OECD to create an international dataset for use by OECD and other institutions in future research.

Points to consider

Methodological strengths/weaknesses:

• While the toolkit is available to all, the expertise and knowledge that would be required to implement it successfully may preclude certain interested parties from doing so.

Relevance:

• This report is relevant to all stakeholders and policymakers with an interest in measuring financial literacy and financial inclusion.

Generalisability/ transferability

• The toolkit is designed to be universal and applicable in all countries, though the initial focus is on OECD/G20 countries.