PISA 2015: students' financial literacy

1. Context
2. The study
3. Key findings
4. Points to consider

• Context
• The study
• Key findings
• Points to consider
• Full report

Context

In 2015 the OECD Programme for International Student Assessment (PISA) assessed the science, reading, mathematics and financial literacy ability of 15-year-olds across 15 countries in order to inform educators and policy makers of the quality and equity of learning outcomes achieved elsewhere. “Financial literacy” was defined as a combination of knowledge, skills, attitudes and behaviour necessary to make sound financial decisions and ultimately to achieve financial well-being. The 2015 assessment built on a similar exercise undertaken in 2012.

The study

Over half a million 15-year-old school students in 15 OECD and partner countries (not including the UK) took part in a standardised test of financial literacy, mathematics, science and reading. The test used a combination of multiple-choice and more complex questions. Tests were computer based and lasting, in total, up to two hours per student. Participants, school staff and parents also completed background questionnaires to provide demographic and other contextual information. Analysis of results allowed individuals to be allocated to one of five PISA proficiency levels. The methodology was carefully managed to ensure that results were representative of each country (or participating provinces within it) and could be reliably compared internationally.

Key findings

• In the 10 participating OECD countries, 12% of students achieved proficiency level 5, the highest, but 22% scored below level 2, the baseline (making simple decisions, understanding everyday financial documents, and recognising the difference between needs and wants).
• Students in Australia, China, Belgium, the Netherlands, Canada and Russia all performed above the OECD average.
• Changes in scores between 2012 and 2015 varied in different ways in different countries.
• While performance in financial literacy was correlated with that in reading and maths, 38% of the variation arises from other factors.
• There was more variation in performance within than between countries.
• There were gender differences in financial literacy but patterns varied. Boys scored higher than girls only in Italy.
• Advantaged students achieved on average one proficiency level higher than disadvantaged ones.
• Immigrant students scored slightly lower than native-born students of similar economic status.
• Discussing money matters with parents was associated with higher financial literacy.
• Many students held bank accounts, although levels varied between countries.
• 64% of students in the OECD countries were earning money from formal or informal employment.
• Financially literate students were more likely to aspire to university education and higher-paid occupations.

Note: The report asserts that all figures it quotes are statistically significant.

Points to consider

• Methodological limitations:
  • There are full methodological explanations and an associated technical report.
  • The report only quotes figures that are statistically significant (but specific levels are not readily apparent).
• Relevance:
  • The study provides a robust overview of results and contexts in participating countries.
• Generalisability/ transferability:
  • The study did not include the UK and there are often large variations between participating countries.

Full report

PISA 2015: students’ financial literacy - full report

Note: Available for online reading or purchase only