7 May 2020 - This PPT presents the results of the third OECD PISA assessment of the financial literacy of 15-year-old students. Find out more at http://www.oecd.org/finance/launch-pisa-financial-literacy-results-2018.htm
Are students-smart-about-money-oecd-pisa-2018-results
1. PISA 2018 Results
Programme for International Student Assessment
VOLUME 4
Are Students Smart About Money?
Yuri Belfali
Flore-Anne Messy
2. • of students performed below Level 2 proficiency. They
cannot recognise the value of a simple budget.15%
• of students attained Level 5 proficiency, the highest level.
They can analyse complex financial products and take into
account features of financial documents that are not
immediately obvious.
10%
Disadvantaged students are more vulnerable
one proficiency level lower, less experience, confidence and interest in money
matters than advantaged students
Performance stable between 2012 and 2018, but improved by 20
points between 2015-2018 due to fewer low-performing students.
Key figures : average performance is consistent with past exercises
3. • of students hold an account at a bank, building society, post office or
credit union54%
• of students reported that they had bought something on line (either
alone or with a family member) during the previous 12 months73%
• of students reported that they had made a payment using a mobile
phone during the previous 12 month39%
• of students reported always or sometimes comparing prices between
a physical shop and an online shop.69%
• of students agreed that they enjoy talking about money matters.
52%
Key figures: Students are already experienced with (online) money matters
4. 60 40 20 0 20 40 60
Russia
Italy
Chile
Poland
Estonia
Peru
Spain
Lithuania
Slovak Republic
Canada
Australia
United States
Finland
%
Calculate prices, costs or budgets
Read bills, invoices, bank statements or other financial statements
Conduct transactions on the Internet, for example buying or selling products or services, or banking
Young people are already
engaged in basic financial activities
Fig IV.1.1
As part of current or last job As part of everyday life
Source: OECD, Survey of Adult Skills
(PIAAC) (2012, 2015, 2017)
5. Continued shrinking public and private benefit systems
(pensions, health)
Increased sophistication and expansion of financial
services, which will be particularly relevant to young
generations
Financial decisions are a part of everyday life
and can have lasting implications
The financial landscape and the COVID-19 crisis context
6. COVID-19 crisis implications:
• more uncertain and precarious
financial and employment
situations that could last
• increasing levels of fraud and scams
• critical decisions to be made in the
short term that will impact future
financial wellbeing
The financial landscape and the COVID-19 crisis context
Financial
resilience
Financial
literacy
Financial
Inclusion
Financial
consumer
protection
10. • 13 OECD countries/economies: Australia, Canadian
provinces, Chile, Estonia, Finland, Italy, Latvia,
Lithuania, Poland, Portugal, the Slovak Republic,
Spain and the United States
• 7 partner countries: Brazil, Bulgaria, Georgia,
Indonesia, Peru, Russia and Serbia
20 participating
countries/economies
• representing 13.5 million 15-year-olds in the
countries/economies concerned
117 000 students sat
the test
The PISA 2018 financial literacy assessment in a nutshell
11. to improve the financial well-being of individuals and society, and to enable
participation in economic life
the knowledge and understanding of financial concepts and risks, and the
skills, motivation and confidence to apply such knowledge and understanding
in order to make effective decisions across a range of financial contexts,
Financial literacy is:
How does PISA define financial literacy?
12. • A cognitive assessment measuring knowledge and
understanding, and the application of this knowledge and
understanding. Each item a combination of a content, a
process, and a context:
• A questionnaire on students’ financial attitudes, behaviour, and
experience
How does PISA 2018 assess financial literacy?
Content Processes Context
Money and transactions Identifying financial information Education and work
Planning and managing finances Analysing information in a financial context Home and family
Risk and reward Evaluating financial issues Individual
The financial landscape Applying financial knowledge and understanding Societal
13. • Mr Davies takes out a loan to buy a car for his family. The
interest rate on the loan is fixed.
• One cost Mr Davies will have is monthly loan repayments.
There are also other costs of running a car, such as petrol
costs, and repair and maintenance costs.
• Some costs will increase if the family uses the car more, but
other costs will stay the same.
• For each cost in the table, put a circle around “Increases” or
“Stays the same” to show what is likely to happen if the
family uses the car more.
• a
Sample question: Costs of Running a Car (Level 3)
Cost What is likely to happen to the cost if the family uses the car more?
Monthly loan repayments Increases / Stays the same
Petrol costs Increases / Stays the same
Repair and maintenance costs Increases / Stays the same
14. 1. Understand how the
bike sharing scheme
works
2. Understand how
frequently Julie rides
a bike
3. Use the application
and find how much
membership in the
bike-sharing scheme
would cost for Julie
Sample question: ZCycle (Question 1, Level 4)
15. What financial skills do 15-year-old students already have?
How is performance related to gender or socio-economic status?
What experiences do students already have with money matters?
Are students confident in handling money matters? Are they interested in doing so?
Do students already display financially responsible behaviours?
How do students’ attitudes, behaviours, and experience with money matters relate to their skills in
financial literacy?
How do students obtain information about financial matters?
What should policy makers look at to improve performance in financial literacy?
What can the PISA 2018 financial literacy assessment tell us?
16. The
questionnaire
has been
greatly
expanded
with new
questions on:
• Digital financial literacy
• Financial education in schools
• Students’ attitudes towards money
matters
• Students’ financial behaviours and
spending strategies
What is new in the PISA 2018 financial literacy assessment?
All of these elements are related to performance in financial literacy!
18. Financial literacy performance
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380
400
420
440
460
480
500
520
540
560
Scorepoints
Tab VI.2.1
Countries/economies with an asterisk* did not meet the PISA 2018 technical standards but were
accepted as largely comparable
Numbers next to the county/economy names indicate upper and lower rank
Countries/economies statistically
significantly above the OECD average
Countries/economies NOT statistically
significantly different from the OECD
average
Countries/economies statistically
significantly different below the OECD
average
20. -20
-15
-10
-5
0
5
10
15
20
Estonia United States Slovak
Republic
Italy Poland Russia Spain OECD
average -
2012
Latvia Australia
Score-pointdifferences(PISA2018–PISA2012) A relatively stable performance with a couple of changes
between PISA 2012 and 2018
Statistically significant differences between PISA 2012
and PISA 2018 are shown in a darker tone
Fig IV.2.3
In Estonia, mean literacy performance
improved by 18 score points since PISA 2012
21. -20
-10
0
10
20
30
40
50
Lithuania Slovak
Republic
Poland Brazil Spain OECD
average -
2015
Chile United
States
Peru Australia Canadian
provinces
Italy Russia
Score-pointdifferences(PISA2018–PISA2015) Performance in some countries (and OECD average) improved
between PISA 2015 and PISA 2018
Statistically significant differences between PISA 2015
and PISA 2018 are shown in a darker tone
Fig IV.2.3
Mean literacy performance improved by
more than 30 score points between
PISA 2015 and PISA 2018 in Lithuania,
the Slovak Republic and Poland
22. Correlation between performance in …
Mathematics Reading and performance in…
0,87 0,83 Financial literacy
0,81 Mathematics
Performance in financial literacy is still correlated
with performance in mathematics and reading
Fig IV.2.4
0.00 signifies no relationship and 1.00
signifies the strongest positive relationship!
OECD average
26. 0 100 200 300 400 500 600 700 800 900 1000
Performance in financial literacy
Boys
Girls
Boys over-represented at both ends of the performance distribution
Fig IV.3.2
Increasedfrequency
This figure is a histogram of performance
using an interval size of five score points
36. 0
10
20
30
40
50
60
70
80
Paying with a debit card
instead of using cash
Keeping track of their
balance
Ensuring the safety of
sensitive information when
making an electronic
payment or using online
banking
Transferring money Paying with a mobile device
(e.g. mobile phone or tablet)
instead of using cash
% Percentage of students who reported that they are confident or very confident in performing each task
Students are relatively confident handling
basic digital financial transactions
Fig IV.7.1
OECD average
37. 0
5
10
15
20
25
30
35
40
Keeping track of one's
balance
Paying with a debit card
instead of using cash
Ensuring the safety of
sensitive information when
making an electronic
payment or using online
banking
Transferring money Paying with a mobile device
(e.g. mobile phone or
tablet) instead of using
cash
Score-pointdifference
Score-point difference between students who reported feeling confident/very confident and
those who reported feeling not very confident/not at all confident
Financial literacy performance is positively associated
with confidence in handling money matters digitally
Fig IV.7.2
All score-point differences are statistically significant
OECD average
Before accounting for gender, student socio-economic profile and immigrant background
After accounting for gender, student socio-economic profile and immigrant background
Students who reported feeling (very) confident in
using digital financial services perform better
42. 0
10
20
30
40
50
60
70
80
Compare prices in different shops Compare prices between a shop
and an online shop
Wait until the product gets cheaper
before buying it
Buy the product without comparing
prices
% Percentage of students who reported that they sometimes or always use each spending strategy
Most students compare prices in different shops
including between physical and online shops
Fig IV.8.3
OECD average
43. -40
-30
-20
-10
0
10
20
30
40
50
60
Compare prices in different shops Compare prices between a shop
and an online shop
Wait until the product gets cheaper
before buying it
Buy the product without comparing
prices
Score-pointdifference
Score-point difference between students who reported that they sometimes or always use the
strategy and those who reported otherwise
Financial literacy performance is positively associated with
comparing prices in different shops (48 points ↑, on average across OECD)
Fig IV.8.4
All score-point differences are
statistically significant
OECD average
Students who reported that they never or rarely
use the strategy perform better
Students who reported that they sometimes or
always use the strategy perform better
Before accounting for gender, student socio-economic profile and immigrant background
After accounting for gender, student socio-economic profile and immigrant background
45. 0
10
20
30
40
50
60
70
80
90
100
Parents, guardians or
other adult relations
Friends Television or radio The Internet Magazines Teachers
% Percentage of students reporting receiving information from each source
94% of students obtain information about money matters from parents,
on average across OECD countries/economies
Fig IV.4.1
OECD average
46. -40
-30
-20
-10
0
10
20
30
40
Parents, guardians
or other adult
relations
Friends Television or radio Internet Magazines Teachers
Score-pointdifference
Score-point difference between students who do and those who do not receive
information from each source
Financial literacy performance is positively associated
with obtaining information from parents (38 points ↑, on average across OECD)
Fig IV.4.2
All score-point differences are statistically significant
OECD averageBefore accounting for gender, student socio-economic profile and immigrant background
After accounting for gender, student socio-economic profile and immigrant background
47. 0
10
20
30
40
50
60
70
80
90
I can decide independently what to
spend my money on
I can spend small amounts of my
money independently, but for larger
amounts, I need to ask my parents
or guardians for permission
I need to ask my parents or
guardians for permission before I
spend any money on my own
I am responsible for my own money
matters (e.g. for preventing theft)
% Percentage of students who agreed/strongly agreed with each statement
A majority of students can decide independently what to spend money on
and are responsible for own money matters
Fig IV.4.4
OECD average
48. -50
-40
-30
-20
-10
0
10
20
30
40
I can decide independently what
to spend my money on
I can spend small amounts of
my money independently, but
for larger amounts, I need to ask
my parents or guardians for
permission
I need to ask my parents or
guardians for permission before
I spend any money on my own
I am responsible for my own
money matters (e.g. for
preventing theft)
Score-pointdifference
Score-point difference between students who do and those who do not receive information
from each source
Financial literacy performance is positively associated with being able to decide
independently what to spend money on (30 points ↑, on average across OECD)
Fig IV.4.5
All score-point differences are
statistically significant
OECD average
Before accounting for gender, student socio-economic profile and immigrant background
After accounting for gender, student socio-economic profile and immigrant background
52. What countries are already
doing and might consider doing
to improve financial literacy
53. • recognises the importance of financial education
• involves the co-operation of different stakeholders
• establishes a roadmap to achieve goals
• provides guidance to individual programmes
A nationally co-ordinated
approach to financial
education that consists
of an adapted framework
or programme that:
• More than 70 countries are developing or
implementing a national strategy
As of 2020
Financial literacy initiatives in participating countries/economies:
National strategies
54. Consumer and financial literacy education primarily in mathematics, humanities and social sciences. Free professional
development programme for teachers to improve confidence and capability to deliver financial education.
Australia
Financial literacy is part curriculum within mathematics, career exploration/development, business studies or social
studies in most participating provinces.
Canada
Financial literacy integrated into civics studies; also a component of optional economics and entrepreneurship studies.
Estonia
Two hours of compulsory social studies / economics / entrepreneurship education per week in primary education
(grades 4 to 6); three hours compulsory for students in grades 7 to 9.
Finland
Specialists from the financial sector, commercial banks and universities provide training and lectures to educators.
Latvia
Until grade 8, financial literacy is integrated into other subjects; in grades 9 and 10, also taught through compulsory
economics and entrepreneurship classes.
Lithuania
Students taught about budgeting, the financial system, financial products, savings, credit, ethics, and the rights and
duties of financial consumers as part of the broader subject “education for citizenship”, compulsory since 2018.
Portugal
Varies at level of the state. Might be an optional course; might be taught within mathematics, economics or social
science; might be a mandatory standalone course.
United States
Financial literacy initiatives in schools
in selected participating countries/economies
55. Address the needs of
low-performing students
Tackle socio-economic
inequalities early on
Provide equal
opportunities to boys
and girls (experience,
attitudes, behaviours
and performance)
Support both access and
education on safe and
age-appropriate (digital)
financial products
Reinforce financial
literacy at school and at
home building on
positive experience
Monitor and evaluate
programmes
Supporting youth financial literacy : a multifaceted approach
56. PISA : upcoming brochures to examine
gender and digital finance
Financial Literacy data : Launch of the OECD/INFE
Global Survey on Adult Financial Literacy - 25 June 2020
Monitoring and evaluation of individual financial
education programmes through technical assistance
G20 : Upcoming Report on Digital Financial Inclusion of
Youth
Ongoing and relevant work
Canadian provinces were British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island.
Netherlands participated but had issues with sampling students.
Weaker students were underrepresented.
Data was not comparable to other countries or to other years.
Process of analysing information in a financial context
Planning and managing finances. Applying financial knowledge and understanding