OeNB Financial Literacy Evaluation Series: Financial literacy in research and policymaking: the concept at the core

Authors: Maximilian Zieser, Valentin Voith, Theresa Lorenz and Sofia Anyfantaki
Year: 2024

Financial literacy has become an increasingly important research and policy topic in the past decades and has been adopted by a multitude of stakeholders. However, there is little consensus on how to define financial literacy, how to measure it or how empirically relevant it is. For related financial education interventions, evaluations and research to be successful, however, it is essential to have a clear idea of the underlying concept and its potential implications. This paper aims to provide both an overview of and guide to the concept by exploring six perspectives of financial literacy: its historical origins, its key stakeholders, its various definitions, the approaches to its measurement, its determinants and its potential impact. Indeed, we find that concepts of financial literacy, and thus its implications for research and policymaking, vary considerably. We therefore recommend using coherent definitions and a rigorous approach to measurement and reporting to ensure that future evaluation and research projects produce meaningful, interpretable and comparable results.

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