International Survey of Adult Financial Literacy

The International Survey of Adult Financial Literacy (ISAFL) by the International Network on Financial Education (INFE) of the OECD is one of the largest international surveys of financial literacy levels worldwide. Since 2014/2015, this representative survey has been conducted every four years in over 30 countries. According to the OECD/INFE's understanding of financial literacy, the specially developed questionnaire tests financial knowledge and includes questions on attitudes and behaviors related to personal finances. Additionally, the survey measures the financial well-being of respondents through a variety of questions, providing insights into how well they can meet their needs and fulfill their wishes. The third and most recent wave of the survey was conducted in 2023, with an additional focus on aspects of digital financial literacy. The OeNB is in charge of the Austrian contribution to ISAFL, the Austrian Survey of Financial Literacy (ASFL). Beyond submitting data to the OECD/INFE, the OeNB conducts independent analyses and studies to further develop the National Financial Literacy Strategy for Austria and inform the development of financial education measures.

Financial literacy is understood by the OECD/INFE as a "combination of financial awareness, knowledge, skills, attitudes, and behaviours necessary to make sound financial decisions and ultimately achieve financial well-being." In line with this definition, the ISAFL distinguishes three areas of financial literacy: financial knowledge, financial attitudes, and financial behaviors. A separate "score" is calculated for each area to reflect the respective level, making the results comparable.

Financial knowledge is assessed through tasks testing both the understanding and correct application of fundamental economic concepts. There are seven questions covering topics such as inflation, interest on loans, risk and return, the time value of money, risk diversification, and simple and compound interest calculations. Financial attitudes are measured through three questions that primarily assess whether individuals prefer long-term financial planning and sustainable saving over short-term consumption. Financial behavior is given the most weight with a total of ten questions. These questions address whether individuals save and plan for the long term, compare prices and products, and keep track of their expenses and financial commitments. All these scores are weighted and summed to create an overall score, which serves as an indicator of financial literacy.

According to the results of the 2023 survey, Austria in the international top field. While this is encouraging, the Austrian population achieves just under 72% of the maximum possible score in terms of financial literacy, indicating room for improvement. This is particularly true considering that the survey only covers very basic aspects of financial literacy.

Beyond financial literacy, the survey also gathers information on financial well-being and related financial vulnerability. The concept of financial well-being includes both objective and subjective aspects. Objective aspects involve questions such as whether income is sufficient to cover necessary expenses or how long one could cover these expenses in the event of losing the main source of income. Subjective aspects focus more on personal wishes and the desired standard of living in relation to one's financial situation. Financial well-being encompasses both the ability to sustainably meet basic needs, even in the event of a financial shock, and the fulfillment of personal financial wishes, which are heavily influenced by the social environment. In 2023, Austria ranked second among participating countries in financial well-being, achieving 63% of the maximum possible value.

Here you can download the report on the latest survey wave: