The PISA 2022 assessment of financial literacy amongst 15-year-old students was the fourth of its kind. It assesses the extent to which students in twenty participating countries and economies have the knowledge and skills, acquired both in and outside of school, that are essential for making financial decisions and plans for their future. This chapter highlights the importance of financial literacy for students in their current lives and as they move into adulthood. It then describes the types of financial education initiatives that can be provided to students in school and through extracurricular and after-school activities. The chapter concludes with a description of how financial literacy is defined and assessed in the 2022 assessment.
PISA 2022 Results (Volume IV)
1. How and why does PISA assess financial literacy?
Abstract
Over the past decades, developed and emerging countries and economies have become increasingly concerned about the level of financial literacy of their citizens, particularly among young people (OECD, 2020[1]). This stems from concerns about such things as shifting demographics and the increased sophistication and expansion of financial services, meaning many more people are required to make financial decisions and navigate financial risks than in previous generations. This includes young people, many of whom face financial decisions, are consumers of financial products and services from an early age, and may be the target of financial scams and frauds. They are likely to face growing complexity and risks in the financial marketplace as they move into adulthood.
These challenges have led to the recognition that better knowledge and understanding of financial concepts and risks could help improve financial decision-making among adults and young people, in both their current and future lives. As a result, financial literacy is now globally recognised as an essential life skill. The 2020 OECD Recommendation on Financial Literacy (OECD, 2020[2]) acknowledges financial literacy as a complement to financial consumer protection, inclusion and regulation, as a way to improve individual decision-making and well-being, and to support financial stability and development.
This chapter begins by discussing the importance of financial literacy for young people. It explains why 15-year-old students will need to have the financial knowledge and skills to be able to conduct financial operations in their everyday lives in the future. Students’ exposure to financial education in and outside of school is also discussed. The chapter then describes how financial literacy is defined and assessed in the PISA 2022 financial literacy assessment.
What the data tell us
Twenty countries and economies – 14 OECD and 6 partner countries and economies – took part in the PISA 2022 financial literacy assessment, among which five G20 countries and economies (Brazil, eight Canadian provinces*, Italy, Saudi Arabia and the United States*). Eight countries participated for the first time in 2022 (Austria, Costa Rica, Denmark*, Hungary, Malaysia, Norway, Saudi Arabia and the United Arab Emirates).
People engage in basic financial activities from a young age. PISA 2022 data reveal that, on average across 14 participating OECD countries and economies, about six in ten 15-year-old students have a bank account and/or a payment or debit card, and more than eight in ten students have bought something on line during the 12 months prior to the PISA assessment.
Students tend to save money but also to overspend, and their spending decisions are influenced by their friends. On average across OECD countries and economies, while more than 90% of students reported having saved money at least once over the 12 months prior to the assessment, close to 80% reported having bought something that cost more than they had intended to spend during that period, and 60% of students reported having bought something because their friends had it.
Higher financial literacy is associated with more responsible financial behaviours. PISA data show that financially literate students were more likely than lower performing ones to report having saved into an account or at home, and comparing prices in different shops before buying something, on average across OECD countries and economies, after accounting for student characteristics, attitudes, and performance in mathematics and reading.
Fifteen of the participating countries and economies have a national strategy for financial literacy. Among countries with a national strategy, many target young people specifically, including Austria, Brazil, Canada*, Hungary, Italy, the Netherlands*, Spain and the United States*. All participating countries and economies started introducing financial literacy topics in the school curriculum or have developed financial education extracurricular activities in schools.
The importance of financial literacy for young people
Policy makers recognise that young people need to be financially literate to perform common tasks in their day-to-day lives, such as using a payment card, choosing amongst mobile phone plans or understanding the implications of in-app purchases. Students also need basic financial skills to make important decisions about their future, such as understanding different options for funding their education or choosing between different career and education paths. As students become increasingly independent from their families, it is likely that the number and complexity of financial decisions will also increase.
Recent and emerging trends suggest that the importance for young people to acquire financial literacy skills will only grow in the future. Young people are likely to face more challenging decisions and risks as new financial products, services and providers appear in the market. The digitalisation of financial services can help reduce financial exclusion by reducing physical infrastructure and cost barriers to the formal financial system, provided young people have the adequate combination of financial literacy and digital skills (OECD, 2020[3]; 2021[4]). Other recent developments in the financial landscape, including a growing interest in and use of crypto-assets or Buy Now Pay Later schemes (BNPL), new and alternative forms of financial advice (such as “finfluencers”, i.e. social media influencers on finance) and the increased incidence and complexity of financial frauds and scams, also highlight the need to strengthen financial literacy skills, especially among young people (OECD, 2024[5]). Financial education therefore has a role, in the context of robust financial consumer protection frameworks, in equipping people with the skills needed to understand financial products and services, choose the most appropriate for them, recognise impartial sources of financial information, know how to assert their rights and protect themselves from financial frauds and scams. Technology, such as budgeting apps or investment simulators, has the potential to facilitate financial decisions and calculations, but financial education is important to ensure that citizens understand how to choose reliable tools and avoid pitfalls while navigating financial decisions.
Alongside these recent and emerging trends, longer-term trends continue to warrant the need for young people to be equipped with financial literacy. Increased life expectancy, less welfare protection and more uncertainty in retirement income due to changing pension regimes mean that future generations will probably need to take more individual financial responsibilities and therefore to bear more financial risks during their lifetime than the previous generations. Digitalisation, technological change, climate change, pandemics, globalisation and changes in the nature of work will continue to contribute to economic and financial uncertainty (OECD, 2019[6]).
PISA data indicate the extent to which 15-year-olds are already using money and are involved in financial decisions. Figure IV.7.1 shows that, on average across OECD countries and economies, 63% of students (55% on average across the 20 countries and economies that participated in the PISA 2022 financial literacy assessment1) held a bank account (or an account with another type of financial service provider), while 62% of students (53% in all participating countries and economies) held a payment or debit card. Over 90% of students in Denmark*, the Netherlands* and Norway held a bank account compared to 13% in Peru, and over 90% of students in Denmark* and the Netherlands* held a payment or debit card compared to less than 25% in Peru (14%), Malaysia (23%) and Spain (24%) (Figure IV.7.1).
Moreover, many students already have experience with financial transactions, including digital financial transactions. Figure IV.7.2 shows that, on average across the 14 participating OECD countries and economies, 86% of students (83% on average across the 20 participating countries and economies) had bought something on line (either alone or with a family member) over the previous 12 months, while around 66% of students had made a payment using a mobile phone. More than 9 out of 10 students in Denmark* had made a payment using a mobile phone over the previous 12 months (Table IV.B1.7.9).
PISA data also provide insights into students’ behaviours related to saving and spending. On average across the 14 participating OECD countries and economies and considering the 12 months prior to the assessment, 93% of students reported having saved money at least once, while 82% reported having checked that they were given the right change when they bought something, 94% reported having checked how much money they had and 74% of students reported having compared prices in different shops before buying something. Across all participating countries and economies, 92% of students had saved, 82% had checked they were given the right change, 92% had checked how much money they had and 72% had compared prices between shops (Table IV.B1.8.1, Table IV.B1.8.5 and Table IV.B1.8.22).
PISA data also indicate that financial literacy and several responsible behaviours are positively associated. Students who performed well in the PISA 2022 financial literacy assessment were more likely to report having saved money at least once in the 12 months prior to the survey, checking that they were given the right change after buying something, checking how much money they had, and comparing prices in different shops before buying something, when compared to students who performed poorly in financial literacy, on average across OECD countries and economies, and after accounting for student characteristics, attitudes, and performance in mathematics and reading (Table IV.B1.8.14, Table IV.B1.8.15 and Table IV.B1.8.28).
Providing financial education to young people
It is important to provide all young people with opportunities for improving their financial literacy. Educational attainment, income, and wealth have been shown to be strongly correlated with financial literacy levels among adults and young people (OECD/INFE, 2023[7]; Lusardi and Mitchell, 2014[8]; OECD, 2020[9]). Analogously, parents with less education, income or wealth have been found to be less well-equipped than other parents to transmit financial knowledge to their children (Lusardi, Mitchell and Curto, 2010[10]). Growing income and wealth inequality might mean that socio-economically disadvantaged groups could fall further behind, without adequate financial literacy. If children and young people learn about money matters only through their parents and families, inequalities in levels of financial literacy, wealth, and financial well-being may be reinforced across generations. Providing youth with financial education in schools and via other programmes can help shrink disparities in financial literacy due to differences in students’ current socio-economic status, which can contribute to reducing income and wealth inequality when these students become adults. Financial literacy programmes in schools can also help improve the levels of financial literacy of students’ teachers and parents (Frisancho, 2018[11]; Bruhn et al., 2013[12]).
Recognising the importance of developing financial literacy skills amongst young people, a growing number of countries and economies have started introducing financial education in schools and through extracurricular and after-school initiatives. To this aim, many countries have developed and implemented nationally coordinated approaches to financial literacy, usually referred to as national strategies (Box IV.1.1).
Box IV.1.1. Improving financial literacy within a country through national financial literacy strategies
Many countries have developed and are implementing national financial literacy strategies. The 2020 OECD Recommendation on Financial Literacy defines a national financial literacy strategy as “a sustained, co-ordinated approach to financial literacy which:
recognises the importance of financial literacy – through legislation where appropriate – and agrees its scope at the national level, taking into account identified national needs and gaps
is coherent with other strategies fostering economic and social prosperity such as those focusing on financial inclusion and financial consumer protection
involves cooperation with relevant stakeholders as well as the identification of a national leader or co-ordinating body/council
includes the establishment of a roadmap to support the achievement of specific and predetermined objectives within a set period of time
provides guidance to be applied by individual programmes implemented under the national strategy in order to efficiently and appropriately contribute to the overall strategy, and
incorporates monitoring and evaluation to assess the progress of the strategy and propose improvements accordingly” (OECD, 2020[2]).
As of 2024 and the preparation of this report, over 80 countries at different income levels reported that they are developing or implementing a national strategy for financial literacy. National financial literacy strategies are usually co-ordinated by one or more public authorities in finance (such as the central bank, ministry of finance or other financial regulator) and education (typically the ministry of education). Most of these strategies target both young people and adults, and often particular groups of adults, such as those on low incomes, those who do not have access to the financial system, rural residents and migrants.
Among the 20 countries and economies taking part in the 2022 PISA financial literacy assessment, 15 have a national strategy (Austria, the Flemish community of Belgium, Brazil, Bulgaria, the Canadian provinces*, Czechia, Hungary, Italy, Malaysia, the Netherlands*, Peru, Portugal, Saudi Arabia, Spain and the United States*). Many of these, such as Austria, Brazil, the Canadian provinces*, Hungary, Italy, the Netherlands*, Spain and the United States*, include a specific focus on young people. Additionally, Poland is in the process of adopting its first national strategy, which includes children and young people as a priority target group (OECD, 2023[13]).
Note: The national strategy for financial education of Belgium applies to the whole of Belgium, including to the Flemish community. Similarly, the Canadian national financial literacy strategy covers all Canadian provinces and territories.
Introducing financial literacy in school
Many existing national strategies for financial literacy in countries around the world specifically identify young people and students amongst their main target groups and support the introduction of financial education in schools. The OECD Recommendation on Financial Literacy advises countries to “take measures to develop financial literacy from the earliest possible age” and “continuing throughout life” (OECD, 2020[2]). The Recommendation recognises the importance of teaching young people key life skills before they start to become active financial consumers, and of using long-term and structural approaches to do so, as opposed to one-off interventions.
A growing number of countries teach financial education in schools, although the extent and nature of such teaching vary across countries and jurisdictions. To minimise curriculum overload, countries typically integrate financial literacy into other subjects and existing courses, rather than introducing an additional subject into an already crowded curriculum (OECD, 2020[1]). At the same time, problems related to money matters can be used as a real-life context for teaching mathematics and other subjects (Noi Keng and Hwee Kian, 2010[14]).
More countries are teaching financial education in school than were doing so when the first PISA financial literacy assessment was conducted in 2012. For example, Portugal has made teaching financial literacy as part of a broader subject “Education for citizenship” compulsory since 2018, while Peru has included financial literacy in the curriculum as part of the competence “Responsibly managing economic resources” since 2016. In 2024 in the United States*, 35 states require students to take a course in personal finance to graduate from high school, up from seven in 2000. Box IV.1.2 details how the countries and economies that participated in the PISA 2022 financial literacy assessment include financial education in school.
Box IV.1.2. Financial education in school among countries and economies taking part in the 2022 PISA financial literacy assessment
Most participating countries and economies started introducing financial literacy topics in the school curriculum, either as a standalone subject or as a cross-cutting topic integrated within other subjects.
In Austria, financial literacy is part of the school curriculum from the age of three. For pre-primary and primary school pupils, the subject is integrated within the “economics: experience and learning” area which focuses on pupils’ basic economic needs in relation to their living space. From grade 5 to grade 12, the “geography and economics” and “people and society” education areas of the general secondary school curriculum cover financial literacy aspects, including the need to plan expenses in households according to financial capabilities. Financial literacy is also integrated in the curriculum of all vocational school pupils.
In the Flemish community of Belgium, financial literacy is taught in primary schools as part of the mathematics, and people and society subjects. It is also mandatory for children in first and third grade of secondary education (i.e. aged between 12 and 14, and between 16 and 18) in all types of education and schools are free to organise financial education as a project, or as a separate or integrated subject, according to their pedagogical strategy.
In Brazil, the National Common Curricular Base defined by the Ministry of Education includes financial education as a compulsory cross-cutting theme, to be integrated in other mandatory subjects. The Central Bank of Brazil and experts from the Centre for Public Policies and Education Assessment at the Federal University of Juiz de Fora developed a pilot programme called “Aprender Valor” to support schools and teachers to effectively teach financial literacy topics. Aprender Valor included the development of a financial competence framework for primary and secondary education, and of ready-to-use teaching resources, to support the integration of financial education within compulsory subjects such as mathematics, Portuguese language and human sciences. Aprender Valor has so far been implemented in more than half of municipalities and close to a quarter (23%) of primary and secondary public schools across the country, with each school participating on a voluntary basis.
In Bulgaria, primary and secondary school pupils enrolled in general or vocational education are taught financial literacy within different subjects from the mandatory curriculum, such as technology and entrepreneurship, mathematics, geography and economics, information technology or civic education, as mandated by the standards developed by the Ministry of Education and Science.
In the Canadian provinces*, financial education is provided to children as part of curricular teaching in several provinces, including six out of the eight provinces participating in the PISA 2022 financial literacy assessment, (British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario and Prince Edward Island). In Alberta and Newfoundland and Labrador it is taught through compulsory extracurricular activities:
In Manitoba for example, financial literacy is part of the mathematics curriculum, which is compulsory at every grade level, and the provincial government has also defined a personal finance course for grade 10 students (aged around 15).
The Ministry of Education of Ontario has developed the financial literacy curriculum based on the PISA financial literacy analytical and assessment framework (OECD, 2019[15]). Financial education is provided within the mathematics curriculum for grades 1 to 9, within the career studies course in grade 10, and as part of cross-curricular learning across all grades, subjects and disciplines of the curriculum.
In Costa Rica, financial education is mandatory and integrated from pre-primary to lower secondary education. Financial education is provided in primary and lower secondary education as part of the “education for household living” subject, where it is taught jointly with responsible and sustainable consumption, and civic education topics, such as compliance with tax obligations.
In Czechia, financial literacy has been integrated as a cross-curricular topic in the lower and upper secondary school curriculum, thanks to the cooperation between the Ministry of Education, the Ministry of Finance, the Czech National Bank, the banking association and non-governmental organisations. Participation of Czechia in the PISA 2012 financial literacy assessment also informed the curriculum. Financial literacy is part of the “people, State and economy” thematic area, which covers money and payments, personal finances and budgeting, family finances and budgeting, financial products and services, taxes and the State budget.
In Denmark*, primary and lower secondary education operate with mandatory national common objectives which are focused on subject purposes, competence areas, competence objectives, and knowledge and skills areas. Individual schools and teachers are responsible for preparing the content and delivery method according to these objectives. Financial literacy is covered in the subject of social studies and in the knowledge and skills area of “personal finance and consumer behaviour”.
The Ministry of Interior’s Deputy State Secretariat on Education developed a financial literacy curriculum for school children in Hungary. Financial literacy content is integrated with mandatory subjects, such as mathematics, environmental studies, and technology and design for primary education, and digital safety and citizenship studies for secondary education. Financial literacy is also taught as a stand-alone subject named “finances of citizens”, which is optional for primary school students and those attending general high schools, and mandatory for students studying at lower secondary vocational schools.
In Malaysia, financial literacy standards were developed in 2012 by the Ministry of Education and the Central Bank, and are integrated in the curriculum for children aged between 3 and 17. A financial education handbook is available, and students in each grade of primary and secondary school must receive about three hours of financial education teaching per year, which is integrated within other core subjects, in particular mathematics.
In Norway, financial literacy training is provided to all children attending primary, lower secondary and upper secondary schools as part of the curriculum for mathematics and social studies. The Ministry of Education sets and approves the curriculum which is coordinated by the Norwegian Directorate for Education and Training.
Financial education has been included in the national curriculum for basic education since 2016 in Peru. The curriculum currently defines 31 competences, among which three are directly related to financial education learning outcomes: “responsibly managing economic resources”, “managing social or economic entrepreneurship projects” and “handling virtual environments generated by information and communication technologies”. Financial literacy lessons are integrated in the mandatory courses of “social individual” in primary education and “social sciences” in secondary education.
In Poland, the Ministry of Education has defined a financial literacy curriculum based on the EU/OECD Financial Competence Framework for Children and Youth in the European Union (European Union/OECD, 2023[16]). Financial literacy topics are integrated within core curriculum subjects for primary education, such as mathematics, geography, civic education and computer science. In secondary education, financial literacy is included in a compulsory “business and management” subject, which is taught for one hour weekly for two years (or two hours weekly for one year) in both general and vocational schools. Topics covered include entrepreneurship, personal finances, the market economy and functioning of financial markets, consumer protection and public finances.
In the 2018/2019 school year, the Ministry of Education of Portugal reviewed the school curriculum and introduced financial literacy as a compulsory subject to be taught (either as a standalone or integrated subject) by schools, in the first and third stages of basic education, as part of the National Strategy for Citizenship Education. A core competence framework for financial education, teacher training and teaching materials had already been developed as part of the national strategy for financial literacy (National Plan for Financial Education) and were adopted by the Ministry of Education in 2012. The core competence framework related to financial literacy covers the knowledge, attitudes and behaviours of children from kindergarten to secondary school and addresses thematic areas including budget planning and management, financial system and basic products, savings, credit, ethics, and rights and duties. A revision of this core competence framework is currently underway to reflect current trends such as the emergence of digital and sustainable finance, and using the EU/OECD Financial Competence Framework for Children and Youth in the European Union (European Union/OECD, 2023[16]) as a reference.
Since 2022, financial literacy has been part of the curriculum for high school students in Saudi Arabia. Financial literacy lessons are compulsory in grade 10 (students aged around 15) and aim to help students understand basic financial concepts and develop a culture of savings and investment. Money-related matters such as buying and selling are taught to children from the pre-primary level, and children in primary and lower secondary schools receive financial literacy teachings as part of other subjects, in particular mathematics, life skills and digital skills.
In three royal decrees signed in 2022, the Ministry of Education, Vocational Training and Sports of Spain outlines eight cross-cutting key competences defining the basic curriculum for all school children aged between 6 and 18, with objectives set for each competence at the end of primary and secondary education (Ministerio de Educación y Formación Profesional, 2022[17]; 2022[18]; 2022[19]). The entrepreneurial competence covers several aspects related to financial literacy, such as the knowledge of basic economic and financial elements, or the skills to gather and optimise necessary resources to carry out an entrepreneurial experience. The 17 departments of education of the autonomous regions are encouraged to consider an interdisciplinary approach when establishing the detailed curricula in accordance with these key competences.
In the United States*, the National Standards for Personal Financial Education (Council for Economic Education and JumpStart Coalition for Personal Financial Literacy, 2021[20]) are used by many states and districts as guidelines when designing curricula for children in the primary and secondary education system. These standards are organised around six topics with related learning outcomes for each school grade: earning income, spending, saving, investing, managing credit and managing risk. A few states and cities have made financial literacy a requirement for lower secondary education (grades 6 to 8, i.e. children aged around 11 to 13), while 35 states have made taking a personal finance course compulsory (grades 9 to 12) for children to graduate from high school, among which 25 states mandate a stand-alone course in financial literacy (Council for Economic Education, 2024[21]). The Consumer Financial Protection Bureau provides financial literacy lessons for all grades of the school system.
Offering young people financial education through extracurricular and after-school initiatives
Young people can learn about financial matters from a variety of sources, including their parents, friends, schools, extracurricular activities and through personal experiences, such as making purchases, choosing a mobile phone plan, opening a bank account or taking out a student loan. Some public authorities, together with non-profit organisations and financial institutions, also teach young people basic financial literacy skills outside of normal school hours through extracurricular activities or after-school initiatives. Extracurricular activities may be organised by schools or offered by external organisations and might include such things as participation in events dedicated to money or saving, school visits from staff of a financial institution, stock market games, visits to a money museum or events where students can create their own small business. After-school initiatives may be offered through organisations such as youth groups or sports clubs and often include games, comics, videos, websites, mobile apps or radio programmes. Box IV.1.3 presents examples of different delivery methods and channels in the countries that participated in the PISA 2022 financial literacy assessment.
Box IV.1.3. Financial education through extracurricular activities among countries taking part in the 2022 PISA financial literacy assessment
Financial literacy is not part of the curriculum in Italy, but various authorities offer extracurricular activities in school. For example, the Bank of Italy has developed a programme to train about 3 000 teachers (from primary, lower secondary and upper secondary schools) every year, while the Italian Companies and Exchange Commission (CONSOB) has set up an iterative programme where a small group of teachers receive training and then train their peers to teach students aged between 6 and 10 about matters related to financial markets.
Schoolchildren in the Netherlands* are taught about financial literacy via extracurricular activities organised in and outside of school in particular during Dutch Money Week. Employees from the Dutch central bank, the financial regulator, the Ministry of Finance and financial institutions provide guest lectures to students on money matters related to their organisation’s area of expertise. Teachers can also access a wide range of financial education material to use in class via the MoneyWise website.
Consumer Financial Protection Bureau (CFPB) financial education staff in the United States* have recently worked on two pilot programmes. The first programme offered financial education to the National Baseball team’s Spanish speaking recruits. The second one, called “The Bureau Serves”, worked with high school students and teachers in socially disadvantaged neighbourhoods to foster financial literacy and career opportunities in financial services and economics, through the CFPB’s Office for Minority and Women Inclusion.
The financial literacy assessment in PISA 2022: definition, framework and assessment in practice
PISA assesses the readiness of 15-year-old students for life beyond compulsory education by collecting and analysing assessment and questionnaire data about students’ knowledge, skills and the context in which they live and learn. It thus provides a rich set of cross-country comparative data that policy makers and other stakeholders can use to make evidence-based decisions. International comparative data on financial literacy can help answer questions such as “How experienced are 15-year-old students with digital financial services and transactions?” and “What differentiates financially literate students from those who struggle to understand financial concepts and make informed financial decisions?”.
The financial literacy assessment focuses primarily on measuring the proficiency of 15-year-old students in applying the financial knowledge and skills that they have learned in and outside of school. Like other PISA domains, financial literacy is assessed using an instrument designed to provide data that are valid, reliable and interpretable. The PISA 2022 Assessment and Analytical Framework (OECD, 2023[22]) presents the comprehensive structure that supports the assessment of 15-year-old students’ financial literacy.
The PISA 2022 assessment of financial literacy amongst 15-year-old students was the fourth of its kind. Previous assessments were carried out in 18 countries and economies in 2012 (OECD, 2014[23]), 15 countries and economies in 2015 (OECD, 2017[24]) and 21 countries and economies in 2018 (OECD, 2020[9]). This fourth assessment covers 20 countries and economies including:
14 OECD countries and economies: Austria, the Flemish community of Belgium, eight Canadian provinces* (Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, hereafter “the Canadian provinces”), Costa Rica, Czechia, Denmark*, Hungary, Italy, the Netherlands*, Norway, Poland, Portugal, Spain and the United States*.
6 partner (non-OECD) countries: Brazil, Bulgaria, Malaysia, Peru, Saudi Arabia and the United Arab Emirates.
Four countries have participated in all four financial literacy assessments undertaken to date: Italy, Poland, Spain and the United States* (Table IV.1.1). Three countries and economies participated in the financial literacy assessment for the third time in 2022: Brazil and Peru participated in the three most recent ones, while the Flemish community of Belgium participated in 2012, 2015 and 2022. Four more countries participated in the financial literacy assessment for the second time in 2022: Bulgaria, Czechia, the Netherlands* and Portugal. The remaining nine countries and economies participated for the first time in the financial literacy assessment in 2022.
Table IV.1.1. Participation in PISA financial literacy assessment cycles
Among countries and economies participating in the PISA 2022 financial literacy assessment
|
2012 |
2015 |
2018 |
2022 |
|
|---|---|---|---|---|
|
OECD countries and economies |
||||
|
Austria |
x |
|||
|
Flemish community of Belgium |
x |
x |
x |
|
|
Canadian provinces*1 |
x* |
x* |
x* |
|
|
Costa Rica |
x |
|||
|
Czechia |
x |
x |
||
|
Denmark* |
x |
|||
|
Hungary |
x |
|||
|
Italy |
x |
x |
x |
x |
|
Netherlands* |
x |
x |
||
|
Norway |
x |
|||
|
Poland |
x |
x |
x |
x |
|
Portugal |
x |
x |
||
|
Spain |
x |
x |
x |
x |
|
United States* |
x |
x |
x |
x |
|
Partner countries |
||||
|
Brazil |
x |
x |
x |
|
|
Bulgaria |
x |
x |
||
|
Malaysia |
x |
|||
|
Peru |
x |
x |
x |
|
|
Saudi Arabia |
x |
|||
|
United Arab Emirates |
x |
1. Seven Canadian provinces participated in the PISA 2015 and 2018 financial literacy assessments: British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island. In 2022, Alberta also participated.
Defining financial literacy
The definition of financial literacy for 15-year-olds that underpins the assessment builds on the OECD definition of adult financial literacy. The OECD defines adult financial literacy as “a combination of financial awareness, knowledge, skills, attitudes and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being” (OECD, 2020[2]).
The definition of financial literacy in the PISA 2022 Financial Literacy Assessment Framework (OECD, 2023[22]) refines the definition used for adults to make it relevant for 15-year-old students and to be consistent with other PISA definitions. The definition also incorporates students’ ability to use financial knowledge and skills to meet challenges in the future.
Financial literacy is knowledge and understanding of financial concepts and risks, as well as the skills and attitudes to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve the financial well-being of individuals and society, and to enable participation in economic life.
This definition, like other definitions of PISA domains, has two parts. The first refers to the kinds of thinking and behaviour that characterise the domain. The second part refers to the purpose for developing the particular literacy. In PISA, “literacy” refers not only to the capacity of 15-year-old students to apply knowledge and skills in key subject areas, but also to students’ ability to analyse, reason and communicate effectively as they pose, solve and interpret problems in a variety of situations.
The framework for assessing financial literacy
The PISA 2022 Assessment and Analytical Framework (OECD, 2023[22]) builds on the PISA 2012, PISA 2015 and PISA 2018 assessment frameworks (OECD, 2013[25]; 2017[26]; 2019[15]). It revises them to take into account changes in the socio-demographic and financial landscape that are relevant for students’ financial literacy and decision-making (Box IV.1.4).
Box IV.1.4. What’s new in the PISA 2022 financial literacy framework
The PISA 2022 financial literacy framework takes into account recent developments in the financial, economic and socio-demographic landscape that are relevant for the financial literacy of young people and that provide a motivation for this assessment; it also takes into account recent research on financial literacy and financial education.
It includes a revised definition of financial literacy (replacing “motivation and confidence” with “attitudes”, to consider the role of a broader set of attitudes).
The descriptions of all content areas have been updated to incorporate new financial knowledge competencies needed by young people, reflecting the new trends described in the introduction.
The process category “analyse information in a financial context” has been renamed as “analyse financial information and situations” to take into account its broader scope.
The structure of other content, process and context categories remained the same, but the distribution of score points across the various categories has been slightly revised, in order to:
give slightly more weight to the “risk and reward” and “financial landscape” content areas, following the trends described in the introduction, and
give slightly less weight to the process “apply financial knowledge and understanding” to reduce the emphasis on numerical skills in cognitive tasks.
The descriptions of non-cognitive factors have been revised to take into account:
new ways in which young people can access information and education (including digital tools and delivery channels developed using behavioural insights)
new ways in which young people can access money and financial products (notably through digital financial services)
a wider set of financial attitudes that may be related to cognitive aspects of financial literacy
a wider set of financial behaviours that young people may engage in.
The section on “the interaction of financial literacy with knowledge and skills in other domains” was expanded to consider possible future synergies with other cognitive assessments.
Source: (OECD, 2023[22])
When the 2012 framework was developed, it constituted the first step in constructing a financial literacy assessment of international scope. It provided an articulated plan for developing items, designing the instrument and providing a common language for discussing financial literacy. In addition to providing a working definition of financial literacy, the framework organises the domain around the content, processes and contexts that are relevant for the assessment of 15-year-old students. This conceptualisation was taken as a reference for further developing international core-competencies frameworks on financial literacy for children and young people (Box IV.1.5).
Box IV.1.5. Financial competencies frameworks for children and youth
OECD/INFE Core Competencies Framework on Financial Literacy for Youth
In 2015, the OECD/International Network for Financial Education (INFE) developed the Core Competencies Framework on Financial Literacy for Youth (OECD, 2015[27]), based on existing financial education learning frameworks (OECD, 2014[28]) and on the conceptualisation of financial literacy developed in the PISA assessment framework (OECD, 2013[25]; 2017[26]).
This framework describes the basic level of financial literacy – in terms of knowledge, attitudes and skills – that is likely to be needed by young people between the ages of 15 and 18 to fully and safely participate in economic and financial life. The competencies are outcome-based, can be adapted to national circumstances and can be used in a flexible manner, taking into account differences in the culture and context at the national and local levels. Some competencies may be more relevant than others, depending on national social and cultural circumstances.
EU/OECD Financial Competence Framework for Children and Youth in the European Union
In 2023, the European Commission and the OECD/INFE jointly developed the Financial Competence Framework for Children and Youth in the European Union (European Union/OECD, 2023[16]), following the publication of the joint EU/OECD Financial Competence Framework for Adults in the European Union (European Union/OECD, 2022[29]).
The EU/OECD framework for children and youth seeks to describe the financial literacy competencies that young Europeans may acquire at different ages (between 6 and 10, between 11 and 15, and between 16 and 18) and across different stages of their formal education. The framework intends to help co-ordinating, designing, sharing and evaluating financial education policies and initiatives within and across EU Member States, to ultimately increase the effectiveness of financial literacy measures across the EU.
Source: OECD (2015[27]), OECD/INFE Core Competencies Framework on Financial Literacy for Youth, https://www.oecd.org/finance/Core-Competencies-Framework-Youth.pdf; European Union/OECD (2023[16]). Financial competence framework for children and youth in the European Union, https://data.europa.eu/doi/10.2874/297346.
Content
The content categories comprise the areas of knowledge and understanding that are essential for financial literacy. The four content areas are:
Money and transactions: covers awareness of the different forms and purposes of money; and managing monetary transactions, including practices such as taking care of cash and other valuables, and filing documents and receipts.
Planning and managing finances: covers skills such as monitoring, managing, and planning income and expenses, and understanding ways of enhancing wealth and financial well-being.
Risk and reward: incorporates the ability to identify ways of balancing and covering risks, and managing finances in uncertainty and an understanding of the potential for financial gains or losses across a range of financial contexts.
Financial landscape: relates to the character and features of the financial world, and the ways in which a wide variety of factors, including technology, innovation, government policy and global sustainable growth measures, can change this landscape over time.
Processes
The process categories relate to cognitive processes. They describe students’ ability to recognise and apply concepts relevant to the domain and to understand, analyse, reason about, evaluate and suggest solutions. In PISA financial literacy, four process categories have been defined in no particular hierarchical order:
Identify financial information: applicable when the student searches for and accesses sources of financial information and identifies or recognises its relevance.
Analyse financial information and situations: focuses on analysing information to recognise relationships in financial contexts, identify the underlying assumptions or implications of an issue in a financial context, extrapolate from information that is provided and recognise something that is not explicit. This process category requires the use of a wide range of cognitive activities in financial contexts, including interpreting, comparing and contrasting and synthesising.
Evaluate financial issues: focuses on recognising or constructing financial justifications and explanations, by drawing on financial knowledge and understanding in specific contexts. It also involves cognitive activities such as explaining, reasoning, assessing and generalising.
Apply financial knowledge and understanding: focuses on taking effective action in a financial setting by using knowledge of financial concepts and products and applying them in a variety of contexts.
Contexts
The context categories refer to the situations in which financial knowledge, skills and understanding are applied, ranging from the personal to the global. In PISA, assessment tasks are framed in general life situations. The focus may be on the individual, the family or peer group, the community or even the world. The contexts identified for the PISA financial literacy assessment include:
Education and work: highlights that students are currently in education, and that many of them will continue in education or training past the age of 15. Moreover, some students may already be engaged in casual employment outside of school hours, and some may soon leave education and move into the labour market.
Home and family: includes financial issues relating to the costs involved in running a household, including the kind of shared accommodation that young people often use shortly after leaving the family home.
Individual: covers most of students’ financial decisions, including using products such as mobile phones or laptops, choosing personal products and services and handling contractual issues, such as getting a loan.
Societal: recognises that individuals’ financial decisions and behaviours can influence and be influenced by the rest of society. It includes matters such as being informed, understanding the rights and responsibilities of financial consumers and understanding the purpose of taxes and local government charges.
Non-cognitive factors
PISA collects non-cognitive data on students taking the financial literacy assessment, to explore the potential relationship between non-cognitive factors and financial literacy.2
The 2022 framework identifies four broad groups of non-cognitive factors that are relevant for young people’s financial literacy. Non-cognitive factors include a combination of:
Contextual factors that may be related to students’ opportunities to improve their financial literacy, such as access to information and education.
Students’ behaviours and opportunities to learn by doing in terms of access to and use of money and financial products.
Financial attitudes that are expected to be associated with cognitive aspects of financial literacy.
Self-reported financial behaviour that can be considered as an outcome of the cognitive aspects of financial literacy.
The 2022 financial literacy assessment in practice
Around 98 000 students were part of the financial literacy assessment in 2022, representing about 9.5 million 15-year-olds in the schools of the 20 participating countries and economies.
In countries and economies that conducted the financial literacy assessment, students in sampled schools were divided into two groups. One group was assessed in financial literacy and either mathematics or reading, and the other group was assessed in the core PISA subjects (reading, mathematics and science). Both groups were assessed for a total of 120 minutes.
The 2022 financial literacy assessment consisted of a one-hour, computer-based assessment using items drawn from a set of 46 question items. Some 41 question items were also used in the 2018 assessment (of which 24 were used in 2012 and an additional 3 were used in 2015); the other five were newly developed to reflect the revised framework (OECD, 2023[30]). As in other domains, financial literacy items were grouped in units, where one or more items shared a common stimulus. The selection included financially focused stimulus material in diverse formats, including prose, diagrams, tables, charts and illustrations.
Students who sat the financial literacy assessment also answered the PISA student questionnaire about themselves, their homes, their school and learning experiences and attitudes. After answering the students’ questionnaire, students who sat the financial literacy assessment also answered a separate financial literacy questionnaire about their experiences with money matters, exposure to financial literacy in school, financial attitudes and behaviours. School principals received a questionnaire that asked questions about school policies and the learning environment, with no particular emphasis on financial education.
As in other domains, there were two types of items: constructed-response (open) items and selected-response (multiple-choice) items. Constructed-response items require students to generate their own answers. The format of the answer may be a single word or figure, or it may be longer (e.g. a few sentences or a worked calculation). Selected-response items require students to choose one or more alternatives from a given set of options. The common types in this category are simple multiple-choice items, which usually require the selection of one from a set of four options; and complex multiple-choice items, in which students respond to a series of Yes/No-type questions.
The PISA 2022 financial literacy assessment included items in the four content categories, the four processes and the four contexts described above (Table IV.1.2). Some 16 of the 46 items covered the content area of “planning and managing finances”; 12 covered the content area of “risk and reward”; 11 covered the content area of “money and transactions”; and the remaining 7 items covered the content area of “financial landscape”, in accordance with the PISA 2022 assessment and analytical framework (OECD, 2023[22]).
Some 15 of the 46 items covered the process area of “evaluating financial issues”; 14 items covered the process area of “analysing information and situations” and 10 covered the area of “applying financial knowledge and understanding”; the remaining 7 items covered the process area of “identifying financial information”. Over half (26) of the 46 items were set in the “individual” context, followed by 13 items in the “home and family” context; the remaining 7 items were divided between the “education and work” and “societal” contexts.
Several sample items, either used in previous financial literacy assessments or in the PISA 2022 financial literacy main survey, are presented and categorised in Annex C.
Table IV.1.2. Content, processes and contexts used in the PISA 2022 financial literacy assessment
|
Number of items in PISA 2022 financial literacy assessment |
Proportion in PISA 2022 financial literacy assessment |
Target proportion described in PISA 2022 assessment and analytical framework |
||
|---|---|---|---|---|
|
Content areas |
Money and transactions |
11 |
24% |
25% - 35% |
|
Planning and managing finances |
16 |
35% |
20% - 30% |
|
|
Risk and reward |
12 |
26% |
20% - 30% |
|
|
Financial landscape |
7 |
15% |
15% - 25% |
|
|
TOTAL Content |
46 |
100% |
||
|
Processes |
Identify financial information |
7 |
15% |
15% - 25% |
|
Analyse financial information and situations |
14 |
30% |
25% - 35% |
|
|
Evaluate financial issues |
15 |
33% |
25% - 35% |
|
|
Apply financial knowledge and understanding |
10 |
22% |
15% - 25% |
|
|
TOTAL Processes |
46 |
100% |
||
|
Contexts |
Education and work |
4 |
9% |
10% - 20% |
|
Home and family |
13 |
28% |
30% - 40% |
|
|
Individual |
26 |
57% |
35% - 45% |
|
|
Societal |
3 |
7% |
5% - 15% |
|
|
TOTAL Contexts |
46 |
100% |
Source: PISA 2022 financial literacy assessment and PISA 2022 assessment and analytical framework (OECD, 2023[22])
References
[12] Bruhn, M. et al. (2013), The Impact of High School Financial Education Experimental Evidence from Brazil, http://econ.worldbank.
[21] Council for Economic Education (2024), Survey of the States, https://www.councilforeconed.org/wp-content/uploads/survey-of-states-2024.pdf (accessed on 29 March 2024).
[20] Council for Economic Education and JumpStart Coalition for Personal Financial Literacy (2021), National Standards for Personal Financial Education, https://www.councilforeconed.org/wp-content/uploads/2021/10/2021-National-Standards-for-Personal-Financial-Education.pdf (accessed on 29 March 2024).
[16] European Union/OECD (2023), Financial competence framework for children and youth in the European Union, https://data.europa.eu/doi/10.2874/297346.
[29] European Union/OECD (2022), Financial competence framework for adults in the European Union, https://www.oecd.org/finance/financial-competence-framework-for-adults-in-the-European-Union.htm.
[11] Frisancho, V. (2018), The Impact of School-Based Financial Education on High School Students and Their Teachers: Experimental Evidence from Peru, http://www.iadb.org.
[8] Lusardi, A. and O. Mitchell (2014), “The economic importance of financial literacy: Theory and evidence”, Journal of Economic Literature, Vol. 52/1, pp. 5-44, https://doi.org/10.1257/jel.52.1.5.
[10] Lusardi, A., O. Mitchell and V. Curto (2010), “Financial Literacy among the Young”, Journal of Consumer Affairs, Vol. 44/2, pp. 358-380, https://doi.org/10.1111/j.1745-6606.2010.01173.x.
[17] Ministerio de Educación y Formación Profesional (2022), “Real Decreto 157/2022, de 1 de marzo, por el que se establecen la ordenación y las enseñanzas mínimas de la Educación Primaria”, https://www.boe.es/eli/es/rd/2022/03/01/157/con (accessed on 29 March 2024).
[18] Ministerio de Educación y Formación Profesional (2022), “Real Decreto 217/2022, de 29 de marzo, por el que se establece la ordenación y las enseñanzas mínimas de la Educación Secundaria Obligatoria”, https://www.boe.es/eli/es/rd/2022/03/29/217/con (accessed on 29 March 2024).
[19] Ministerio de Educación y Formación Profesional (2022), Real Decreto 243/2022, de 5 de abril, por el que se establecen la ordenación y las enseñanzas mínimas del Bachillerato, https://www.boe.es/eli/es/rd/2022/04/05/243/con (accessed on 29 March 2024).
[14] Noi Keng, K. and L. Hwee Kian (2010), Learning Mathematical Concepts Through Authentic Learning, Mathematics Education Research Group of Australasia.
[5] OECD (2024), Consumer Finance Risk Monitor, OECD Publishing, Paris, https://doi.org/10.1787/047b2ea6-en.
[13] OECD (2023), National Strategy for Financial Education for Poland, https://www.oecd.org/finance/financial-education/national-strategy-financial-education-poland.htm.
[22] OECD (2023), PISA 2022 Assessment and Analytical Framework, PISA, OECD Publishing, Paris, https://doi.org/10.1787/dfe0bf9c-en.
[30] OECD (2023), PISA 2022 Technical Report.
[4] OECD (2021), G20/OECD-INFE Report on Supporting Financial Resilience and Transformation through Digital Financial Literacy, http://www.oecd.org/finance/supporting-financial-resilience-and-transformation-through-digital.
[3] OECD (2020), Advancing the Digital Financial Inclusion of Youth.
[9] OECD (2020), PISA 2018 Results (Volume IV): Are Students Smart about Money?, PISA, OECD Publishing, Paris, https://doi.org/10.1787/48ebd1ba-en.
[1] OECD (2020), Policy Handbook on Financial Education for Young People in the Commonwealth of Independent States (CIS), https://www.oecd.org/financial/education/Youth-Policy-Handbook-on-Financial-Education-CIS-EN.pdf (accessed on 30 January 2024).
[2] OECD (2020), Recommendation of the Council on Financial Literacy.
[6] OECD (2019), OECD Skills Outlook 2019: Thriving in a Digital World, OECD Publishing, Paris, https://doi.org/10.1787/df80bc12-en.
[15] OECD (2019), PISA 2018 Assessment and Analytical Framework, PISA, OECD Publishing, Paris, https://doi.org/10.1787/b25efab8-en.
[26] OECD (2017), PISA 2015 Assessment and Analytical Framework: Science, Reading, Mathematic, Financial Literacy and Collaborative Problem Solving, PISA, OECD Publishing, Paris, https://doi.org/10.1787/9789264281820-en.
[27] OECD (2015), OECD/INFE CORE COMPETENCIES FRAMEWORK ON FINANCIAL LITERACY FOR YOUTH, https://www.oecd.org/finance/Core-Competencies-Framework-Youth.pdf (accessed on 22 February 2023).
[28] OECD (2014), Financial Education for Youth: The Role of Schools, OECD Publishing, Paris, https://doi.org/10.1787/9789264174825-en.
[23] OECD (2014), PISA 2012 Results: Students and Money (Volume VI): Financial Literacy Skills for the 21st Century, PISA, OECD Publishing, Paris, https://doi.org/10.1787/9789264208094-en.
[25] OECD (2013), PISA 2012 Assessment and Analytical Framework: Mathematics, Reading, Science, Problem Solving and Financial Literacy, PISA, OECD Publishing, Paris, https://doi.org/10.1787/9789264190511-en.
[7] OECD/INFE (2023), OECD/INFE 2023 International Survey of Adult Financial Literacy, https://www.oecd.org/publications/oecd-infe-2023-international-survey-of-adult-financial-literacy-56003a32-en.htm (accessed on 29 January 2024).
[24] PISA (ed.) (2017), PISA 2015 Results (Volume IV): Students’ Financial Literacy, OECD Publishing.
Notes
← 1. These countries and economies are Austria, the Flemish community of Belgium, Brazil, Bulgaria, the Canadian provinces* that participated in the assessment, Costa Rica, Czechia, Denmark*, Hungary, Italy, Malaysia, the Netherlands*, Norway, Peru, Poland, Portugal, Saudi Arabia, Spain, the United Arab Emirates and the United States*.
← 2. Keeping in mind that the establishment of causal links between cognitive aspects and students’ attitudes, behaviours and outcomes is not possible with PISA data.