Development and field-testing of

a competence-based instrument for assessing financial literacy of adolescents

Dr. Carmela Aprea, Head of Research Theme „Current VET/PET Contexts“

Swiss Federal Institute for Vocational Education and Training (SFIVET) Lugano, CH

4th International INAP ConferenceBeijing, May 26th and 27th, 2011

Dezember 2010 2

Overview

Mai 2011 n 4th International INAP Conference, Beijing (China) Dr. Carmela Aprean

1 Problem context

2 Review of prior research

3 Conceptual foundation of the assessment instrument

4 Field-testing of the assessment instrument

5 Preliminary results

6 Conclusions and suggestions for future research

Dezember 2010 3

Problem context

Mai 2011 n Dr. Carmela Aprean

… shrinking public support systems

Financial literacy (i.e. the ability to reasonably

decide upon and use financial resources) isimportant because of …

… shifting demographic profiles… changing financial markets

4th International INAP Conference, Beijing (China)

Dezember 2010 4

Review of prior research

Mai 2011 n Dr. Carmela Aprean

Financial literacy among the population is rather low.

This is especially the case for certain groups of consumers (e.g., the less educated, those at the lower end of the income distribution and minorities).

Consumers tend to overestimate their financial knowledge and skills.

4th International INAP Conference, Beijing (China)

(e.g., OECD 2005; Reifner, 2006)

Dezember 2010 5

Conceptual foundation

Mai 2011 n Dr. Carmela Aprean4th International INAP Conference, Beijing (China)

Competence as the potential to generate effective actions in order to cope with the demands of specific situations. This potential is based on the activation of individual dispositions (e.g., Weinert, 2001).

Action regulation theoretical approaches (e.g., Hacker, 2003; Miller, Galanter & Pribram, 1960).

Knowledge psychological approaches (e.g. Anderson et al., 2003).

Dezember 2010 6 Mai 2011 n Dr. Carmela Aprean

Conceptual foundation

Individual characteristics

Factual, conceptual, procedural, meta-cogn.

Situational characteristics

Task characteristics

(Gibson: Affordances/Constraints)

changes

Decisionproduct (II)

Mentale(s) Modell(e)

)

Mental)

Model(s)

Decisionproduct (I)

Performance

Planning financial decisions

Executing financial decisions

Controlling financial decisions

Further situational conditions

Competence-based working model

Decisionprocess

Motivations & interests

Attitudes & values

Knowledge & skills

4th International INAP Conference, Beijing (China)

Dezember 2010 7 Mai 2011 n Dr. Carmela Aprean

Field-testing

Sample

198 students (grades 8 and 9) in Baden-Wuerttemberg (Germany)

4 lower-level (i.e., Hauptschule; n=101) and 4 mid-level (i.e., Realschule; n=97) secondary schools

Age: 14 - 17 years

50 percent female

4th International INAP Conference, Beijing (China)

Dezember 2010 8 Mai 2011 n Dr. Carmela Aprean

Field-testing

Informational part

Assessment questionnaire

Subjective part Objective part Demographic

characteristics

Money at disposal

Average revenues & expenditures

Availability ofbank account

Major financial education agents

Future professionalplans

Importance of money/financial issues

Preparedness forfinancial issues

Interest in financial topics

Awareness of sound financial decision making

Attitudes and valuesconcerning consumption,saving and indebtedness

Planning financial decisions (8 items)

4th International INAP Conference, Beijing (China)

e.g. Exploring needs & wants Budgeting

Executing financial decisions (12 items)e.g. Comparing offers Concluding a contract

Controlling financial decisions (3 items)e.g. Controlling receipts Preserving financial

documents

Dezember 2010 9 Mai 2011 n Dr. Carmela Aprean

Preliminary resultsSubjective part Objective part

Itemanalyses

•.48 < degree of difficulty < .79•.45 < discriminatory power < .65•.61 < internal consistency < .74•.98 < inter-rater consensus < 1.00

•.19 < degree of difficulty < .91•.28 < discriminatory power < .51•.35 < internal consistency < .59•.95 < inter-rater consensus < 1.00

Descriptive Analyses

• M (Importance) = 3.08 (SD=.80)• M (Preparedn.) = 3.10 (SD=.69)• M (Interest) = 1.90 (SD=.87)• M (Awareness) = 1.85 (SD=.98)

• M (Planning) = 4.71 (SD=1.47)

• M (Executing) = 5.30 (SD=2.55)

• M (Controlling) = 1.78 (SD=.95)

Inferential Analyses

• Preparedn. Female (M=3.00; SD=.59) < Male (M=3.21; SD=.54) (p<.01)

• Awareness lower-level (M=1.70; SD=.89) < mid-level (M=1.98; SD=.98) (p<.05)

• Planning lower-level (M=4.20; SD=1.54) < mid-level (M=5.23; SD=1.20) (p<.01)

• Executing lower-level (M=3.94; SD=2.25) < mid-level (M=6.51; SD=2.15) (p<.01)

4th International INAP Conference, Beijing (China)

Dezember 2010 10 Mai 2011 n Dr. Carmela Aprean

Conclusions & suggestions(1) Refinement of working model and task analyses

(2) Optimization and re-testing of the assessment questionnaire

(3) Application of complex psychometrical and statistical methods

(4) Supplementary research studies to capture mental models and reasoning processes

(5) Developmental and interventional research studies

4th International INAP Conference, Beijing (China)

Dezember 2010 11 Mai 2011 n Dr. Carmela Aprean

Thanks for your attention!Dr. Carmela Aprea Swiss Federal Institute for Vocational Education and Training (SFIVET)

Via Besso 84 | CH-6900 Lugano Massagno

Carmela.Aprea@iuffp-svizzera.ch

http://www.iuffp-svizzera.ch

4th International INAP Conference, Beijing (China)

Dezember 2010 12 Mai 2011 n Dr. Carmela Aprean4th International INAP Conference, Beijing (China)

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