Measuring financial literacy: a literature review

Measuring financial literacy: a literature review

PurposeThe purpose of this paper is to review the main methods used in the literature to measure financial literacy (FL) of individuals.Design/methodology/approachThe paper begins by describing how the different items used to measure the FL level of individuals are constructed. Then, it focuses on h...

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Bibliographic Details
Published in:Managerial finance Vol. 47; no. 2; pp. 266 - 281
Main Authors: Ouachani, Sonia, Belhassine, Olfa, Kammoun, Aïda
Format: Journal Article
Language:English
Published: Patrington Emerald Publishing Limited 28-01-2021
Emerald Group Publishing Limited
Subjects:
Decision making
Financial literacy
Financial management
Knowledge
Literature reviews
Securities markets
Stock exchanges
Taxonomy
Financial literacy
Objective measures
Literature review
Items
Study topics
Content areas
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Summary:PurposeThe purpose of this paper is to review the main methods used in the literature to measure financial literacy (FL) of individuals.Design/methodology/approachThe paper begins by describing how the different items used to measure the FL level of individuals are constructed. Then, it focuses on how do researchers select the items. Finally, it reviews the different calculation methods used in the literature to assess the FL level.FindingsFL as a concept is tough to define and measure. Several studies focus on the definition and the measure of this concept. Different items are used in the literature and are mostly related to the study topics. The used calculation methods differ across the different studies.Originality/valueThis paper sheds light on the principal methodologies used in the literature to measure FL. It highlights the relationship between the items' content areas and the studies' subjects. Thus, this paper suggests guidance for future studies on measuring methods of FL.
ISSN:0307-4358
1758-7743
DOI:10.1108/MF-04-2019-0175