Monday, November 21, 2016

Financial literacy competencies: an interactive dashboard

The OECD/INFE has recently published results of an international data collection which measured financial literacy and financial inclusion. The survey aims to enable policy-makers to identify gaps and design appropriate responses. Also, it potentially allows comparisons between countries and the identification of patterns. A total of 51,650 adults aged 18 to 79 from 30 countries and economies participated in the survey.

People were quizzed about money, savings, debt and investments using questionnaires items. Competencies were measured in three dimensions: knowledge, attitudes and behaviour. One of the main results is related to the achievement of minimum target scores of competencies within each country. For instance, a country achieves the targeted financial knowledge if its citizens give 5 correct answers to a total of 7 items. Similarly, the process is applied to the other two dimensions: attitudes (3 out of 5) and behaviour (6 out 9).

The report shows that knowledge scores are significantly lower for women than men after controlling for country-level differences, age and education. Interestingly, self-assessed financial knowledge was shown to be relatively realistic: in most countries, people who rate their financial knowledge as being higher than average do, on average, have higher scores than other people in their country.

To facilitate visualisation of these dimensions, we created an interactive dashboard with Tableau in which you can check the relationships (or the absence of them) between knowledge x attitudes x behaviour. The visualisation indicates shows no clear association or patterns between knowledge, behaviour and attitudes across countries.

Check our dashboard here

In this link, you can check the slides of the presentation given by the OECD Directorate for Financial and Enterprise Affairs last month. It points out the next steps and prospects for future analysis.

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