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Measuring financial literacy in Asia: Experiences from Thailand OECD Seminar on Financial Inclusion and Financial Literacy in Asia Bangkok, Thailand 16 December 2014

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  • Measuring financial literacy in Asia: Experiences from Thailand

    OECD Seminar on Financial Inclusion and Financial Literacy in Asia Bangkok, Thailand

    16 December 2014

  • 2


    1 Survey overview

    2 Coverage and methodology

    3 Questionnaire content

    4 Survey results

    5 Policy recommendations and next steps

  • 3

    Survey overview

    Objectives To measure financial literacy levels To develop evidence-based

    financial literacy strategy To monitor development in financial

    literacy level

    Type of survey A part of the National household

    survey Conducted once every three years In collaboration with the National

    Statistical Office of Thailand (NSO)

    Questionnaire content Based on OECDs core

    questionnaire with a few modifications

    Consists of 3 main components: Financial knowledge Financial behaviour Financial attitude

    Preparation for fieldwork Internal focus group to test

    comprehensibility and applicability Seminars for interviewers to provide

    survey background and clarification Prepared documents for fieldwork to

    assist interviewer such as showcards

  • Land area 513,120 sq.km Population (2013 estimate) 66.7 million people 77 provinces

    Stratified two-stage sampling (77 strata)

    - Primary sampling units: Proportional Selection of blocks/villages

    - Secondary sampling units: Systematical selection of private sampled households

    Nationwide fieldwork in Q1/2013 Sample size of 10,627 participants Face-to-face interviews with household head or other members

    Source : Bank of Thailand, National Statistical Office and Department of Provincial Administration, Ministry of Interior


    Coverage and Methodology Thailand at a glance

    Sampling methodology

    Data collection

  • 5

    Questionnaire Content Modifications on knowledge and attitude questions. Knowledge

    o excluded questions: risk and return, inflation, diversification o additional questions : credit record and deposit protection policy

    Attitude only one question retained

    Knowledge (total 7 questions 8 marks)

    Behaviour (total 8 questions 9 marks)

    Attitude (total 1 question 5 marks)

    Division Time value of money Interest paid on loan

    Simple interest Compound interest

    Risk & Return Inflation

    Diversification Credit record

    Deposit protection

    Considered purchase Timely bill payment

    Keeping watch of financial affairs

    Long term financial goal setting

    Responsible and has a household budget

    Active saving Choosing products

    Borrowing to make ends meet

    I find it more satisfying to spend money than to save

    it for the LT I tend to live for

    today and let tomorrow take care

    of itself

    Money is there to be spent

  • 6

    Survey Results

    Financial Knowledge Avg. 46.8%

    Areas for further improvement: - Compound interest -Deposit protection policy

    -Time value of money

    Financial Behaviour Avg. 65.6%

    Financial Attitude

    Avg. 64.5%

    Total FL score - Avg. 58.5%

    Areas for further improvement: -Household financing and budgeting

    -Choosing financial products

    -Making ends meet without borrowing

    Having positive attitude towards saving for the future

    Relationship analysis

    - Positive relationship - Implication: Financial behaviour can be improved through financial knowledge enhancement.

    Knowledge & Behaviour

    - No significant relationship found - However, this analysis is only based on 1 question (variable) - More variables might be added for further analysis

    Knowledge & Attitude

    Main Findings: Financial literacy score & Relationship analysis

  • 7

    Survey Results

    Most of the findings are in line with OECDs Main Findings: Variation by Socio-Demographics

    Gender Age Income Education

    Financial knowledge

    Financial behaviour and




    Low financial literacy in youth

    and elderly


    Financial literacy


    Financial literacy

  • 8

    Policy recommendations and next steps

    Financial education program should aim at: o Priority targets: Low income and low education groups o Topics:- Financial knowledge: compound interest, deposit protection policy, time value of money

    -Financial behaviour: responsible finances and budgeting, choosing financial products, not to borrow discipline

    Long-term policy on financial education needs collaboration from government, financial regulators, and private sector to articulate sustainable financial education

    Policy recommendations

    Survey improvement: o Exclusive survey on financial literacy convenient for questionnaire content and survey length specification o Sustainable platform for the survey such as web-based survey. Consumer insight survey: oGather information on various aspects such as attitudes, lifestyle, media consumption, needs and wants in financial education oDevelop a communication strategy for a better reach to each target group.

    Next steps