How to Measure the Financial Literacy

Abstract

Purpose - The purpose of the paper is to find what are the important key words and items to become the financially literate consumer, therefore, to develop the measurement of financial literacy according to diverse age groups. Design/Methodology - Data were collected by expert interview from 25 experts in the areas of finance, that is, 15 professors of majors in finance, 10 researchers in financial market, and 5 financial officer in the government. The questions were 1) the direction of measuring the financial literacy from elementary students to the elderly, 2) what were the most important key words and items for financially literate consumers. Findings - The financial literacy must be estimated according to all age groups and in each 3 dimensions that is, financial knowledge, financial behavior, financial attitude. The most important key words and items were selected in each elementary, middle, high, and college students, adults, the elderly, and the vulnerable. Implications - The results of study contribute to improve the measurement of financial literacy in consideration of Korean financial market. Also, many key words and items developed in this study can be used practically in estimating the financial literacy in every age groups.