FIRST RESULTS OF THE OECD/INFE
INTERNATIONAL SURVEY OF ADULT
FINANCIAL LITERACY COMPETENCIES
Auckland, 12 October 2016
Flore-Anne Messy Head of DAF/FIN Division, OECD Executive Secretary INFE
Outline
THE OECD/INFE SURVEY INSTRUMENT
Survey instrument to capture financial literacy…
• …a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being
…in a representative sample of adults, and available in a Toolkit
• Questionnaire (core) and optional questions
• Methodological notes; Interviewer briefings
G20 Leaders welcomed and supported its use in 2013
It was updated in 2015 to include new areas
OECD / INFE survey to measure
financial literacy and financial inclusion
Results comparable across countries and over time
OECD/INFE financial literacy survey
…as well as on its relationship with
Fin Behaviour 9Q
Budgeting, paying bills on time, active saving, choosing
products, retirement planning
Fin knowledge 7Q
Simple and compound interest, Inflation, time
value of money, Risk and return, Risk
diversification
Fin attitudes 5Q
Propensity to save vs spend,
Time preference
Financial inclusion
Financial products awareness, use and
recent choice
Socio-demographics
Age, Gender, Education, Work,
Income
New areas
Wellbeing; Fraud; Self-assessment of financial knowledge
THE 2015 INTERNATIONAL
SURVEY RESULTS:
SELECTED FINDINGS
30 countries and economies (including 17 OECD countries) took part.
In total, 51,650 adults aged 18 to 79 were interviewed using the same core questions, in a total of 30 languages.
Analysis looks at :
• Responses to different questions
• Minimum target scores achieved in financial knowledge, behaviour and attitudes
In brief
Albania Jordan
Austria Korea
Belarus Latvia
Belgium Lithuania
Brazil Malaysia
British Virgin Islands Netherlands
Canada New Zealand
Croatia Norway
Czech Republic Poland
Estonia Portugal
Finland Russian Federation
France South Africa
Georgia Thailand
Hong Kong, China Turkey
Hungary UK
International coverage:
30 countries across Asia Pacific,
Europe, Africa, North and South America
On average, just 56% of adults across participating countries and
economies achieved the minimum target score of at least 5 out of 7
(63% across OECD countries)
Many adults are currently unable to reach the
minimum target score on financial knowledge
56% 62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
South
Afr
ica
Mala
ysia
Bri
tish V
irg
in I
sla
nds
Bela
rus
Th
aila
nd
Alb
ania
Russia
n F
ed
era
tion
Cro
atia
Jord
an
United K
ingd
om
Bra
zil
Czech R
ep
ub
lic
Pola
nd
Georg
ia
Avera
ge, all
countr
ies
Tu
rkey
Fra
nce
Hun
gary
Belg
ium
Lithuan
ia
Port
ugal
Can
ada
Avera
ge, O
EC
D c
ountr
ies
New
Zea
lan
d
Neth
erland
s
Austr
ia
Latv
ia
No
rwa
y
Fin
lan
d
Esto
nia
Kore
a
Hon
g K
ong (
Chin
a)
On average, only 58% could calculate a simple interest on savings (65% OECD)
On average, only 42% of adults are aware of the additional benefits of interest compounding on savings (48% OECD)
Only about two in three adults were aware that it is possible to reduce investment risk by buying a range of different stocks
Adults particularly struggle with
basic financial knowledge and concepts
The distribution of knowledge varies
0%
10%
20%
30%
40%
Kore
a
Latv
ia
Lithuan
ia
Mala
ysia
Ne
the
rla
nd
s
New
Zea
lan
d
Norw
ay
Pola
nd
0 1 2 3 4 5 6 7
And women struggle with financial knowledge more
than men, on average, and in many countries (percentage of women and men achieving target minimum score)
0%10%20%30%40%50%60%70%80%90%
100%
Sou
th A
fric
a
BV
I
Jord
an
Un
ited
Kin
gd
om
Bra
zil
Cana
da
Geo
rgia
Ave,
all
coun
trie
s
Turk
ey
Ne
therl
ands
New
Zeala
nd
Belg
ium
Lith
ua
nia
Fra
nce
Port
ugal
No
rway
Ave,
OE
CD
cou
ntr
ies
Austr
ia
Fin
lan
d
Kore
a
Hong
Ko
ng (
Chin
a)
Female Male
Only statistically significant differences shown
Just one in two (51%) respondents across all participating countries
and economies achieved the minimum target score of at least six out of
nine on financial behavior (54% OECD)
Only about half of adults reach
the minimum target score on behaviour
51% 54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Hu
ng
ary
Po
land
Georg
ia
Bra
zil
Tu
rke
y
Esto
nia
Cro
atia
Czech
Re
pu
blic
Be
laru
s
Ru
ssia
n F
ed
era
tio
n
Alb
ania
Ne
the
rla
nd
s
La
tvia
Lith
ua
nia
Ave
rag
e, a
ll co
untr
ies
Avera
ge, O
EC
D…
Un
ite
d K
ing
do
m
Ma
laysia
Ko
rea
No
rwa
y
Jo
rda
n
Ne
w Z
ea
land
Th
aila
nd
Ho
ng
Ko
ng
(C
hin
a)
Po
rtu
ga
l
Ca
na
da
Au
str
ia
Be
lgiu
m
Fin
land
British
Virg
in Isla
nd
s
Fra
nce
The weakest areas of financial behaviour across these
measures appear to be related to budgeting, planning ahead,
choosing products and using independent advice
There are several beneficial behaviours that are
(perhaps surprisingly) uncommon
On average, only 60% of adults reported having a household budget
(57% OECD); and only about 50% set long-term goals and tried to achieve
them (51% OECD)
Among those who had chosen a financial product in the last two years,
only 44% made an attempt to shop around on average (46% OECD), and
only 19% used independent information (20% OECD)
60% 57%
0%10%20%30%40%50%60%70%80%90%
100%
Latv
ia
Mala
ysia
Fra
nce
Tu
rkey
Bela
rus
Kore
a
Th
aila
nd
Port
ugal
Alb
ania
Cro
atia
Pola
nd
Lithuan
ia
Jord
an
Georg
ia
Ca
na
da
Fin
land
Hon
g K
ong (
Chin
a)
South
Afr
ica
Avera
ge, all
countr
ies
New
Zea
lan
d
Avera
ge, O
EC
D c
ountr
ies
United K
ingd
om
Russia
n F
ed
era
tion
Bri
tish V
irg
in I
sla
nds
Belg
ium
Bra
zil
Esto
nia
Czech R
ep
ublic
Neth
erland
s
Norw
ay
Austr
ia
Hu
ng
ary
In a number of countries, less than half of
respondents have a household budget
1in 5 borrowed to make ends meet in the
last 12 months, on average
0%
10%
20%
30%
40%
50%
60%
70%
Belg
ium
United K
ingd
om
No
rwa
y
Hon
g K
ong (
Chin
a)
Hun
gary
New
Zea
lan
d
Austr
ia
Kore
a
Fra
nce
Czech R
ep
ublic
Pola
nd
Ne
the
rla
nd
s
Can
ada
Fin
land
Avera
ge, O
EC
D…
Port
ugal
Esto
nia
Bra
zil
Jord
an
Avera
ge, all
countr
ies
Cro
atia
Mala
ysia
Lithuan
ia
British
Vir
gin
Isla
nd
s
Russia
n F
ed
era
tion
Latv
ia
South
Afr
ica
Alb
ania
Bela
rus
Tu
rkey
Georg
ia
Th
aila
nd
Respondent reported that their income did not always cover their living costs
Respondent borrowed to make ends meet (% of all respondents)
When people choose a financial product they
(very) rarely seek independent advice
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Ne
the
rla
nd
s
Hu
ng
ary
Ho
ng
Ko
ng
(C
hin
a)
Czech
Re
pu
blic
Be
laru
s
Cro
atia
Un
ite
d K
ing
do
m
Be
lgiu
m
Po
land
Ne
w Z
ea
land
Esto
nia
Jo
rda
n
Lith
ua
nia
Ru
ssia
n F
ed
era
tio
n
La
tvia
Avera
ge, all
countr
ies
No
rwa
y
Ave
rag
e, O
EC
D c
ou
ntr
ies
Alb
ania
Tu
rke
y
Bra
zil
Ge
org
ia
Ma
laysia
Ca
na
da
Austr
ia
Th
aila
nd
Fin
lan
d
Fra
nce
Po
rtu
ga
l
British
Virg
in Isla
nd
s
Ko
rea
1 Some attempt to make informed decision or sought…2 Used independent information or advice
Combining these findings,
levels of financial literacy are low
13.2 out of 21, on average on the minimum target score
0.0
5.0
10.0
15.0
20.0
Po
land
(11
.6)
Be
laru
s (
11
.7)
Cro
atia
(1
2.0
)
Bra
zil
(12.1
)
Ru
ssia
n F
ed
era
tio
n (
12
.2)
Ma
laysia
(12
.3)
Ge
org
ia (
12
.4)
Hu
ng
ary
(1
2.4
)
Tu
rke
y (
12
.5)
Czech
Re
pu
blic
(1
2.6
)
Jo
rda
n (
12
.6)
Alb
ania
(1
2.7
)
Th
aila
nd (
12.8
)
British
Virg
in Isla
nd
s (
13
.0)
Un
ite
d K
ing
do
m (
13
.1)
Ave
rag
e, a
ll co
untr
ies (
13
.2)
La
tvia
(13
.3)
Esto
nia
(1
3.4
)
Ne
the
rla
nd
s (
13
.4)
Lith
ua
nia
(1
3.5
)
Ave
rag
e, O
EC
D c
ou
ntr
ies (
13
.7)
Po
rtu
ga
l (1
4.0
)
Au
str
ia (
14
.2)
Be
lgiu
m (
14.3
)
Ko
rea
(14
.4)
Ne
w Z
ea
land
(14
.4)
Ho
ng
Ko
ng
, C
hin
a (
14.4
)
Ca
na
da
(1
4.6
)
No
rwa
y (
14.6
)
Fin
lan
d (
14
.8)
Fra
nce
(1
4.9
)
Knowledge score Behaviour score Attitude score
SELECTED POLICY LESSONS
Importance of starting financial education early and ideally in schools
• improve financial knowledge overall
• establish sound habits (budget /long term planning)
• bridge the knowledge gender gaps
Selected financial education policy lessons (1): Addressing overall low level of financial literacy
Support financial resilience and improve active choices of products
• Tools to develop budget and face to face advice on prioritizing expenses and saving
• Support planning ahead and saving through a mixture of improved financial knowledge and tools (simulators) as well as nudges (reminders to save and default option)
• Improve access to information on products (comparison) and to advice especially in the case of complex investment choices (including for retirement) – prospect of robo advice if properly regulated
Selected policy lessons (2) :
Address adults’ weakest behaviors
Role of financial regulation : especially in the area of credit to support responsible use and protect consumers; but also to promote saving for the long-term (pension systems, taxation)
The economic and financial context : The current low interest rate and inflation environment coupled with increased digitalization of finance may have an impact on consumers’ attitude and behaviors towards the short term and overreliance on credit.
Selected policy lessons (3):
The broader picture
NEXT STEPS
More detailed analysis of gender differences
Analysis of the potential correlation between financial inclusion and financial literacy
Analysis of other target groups, such as the self-employed, older adults, low-income groups
Exploration of the concept of financial well-being
Report on financial literacy across G20 countries
Future analyses
THANK YOU!
www.oecd.org/finance/oecd-infe-survey-adult-
financial-literacy-competencies.htm
www.financial-education.org
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