This sixth volume of PISA 2012 results examines 15-year-old students’ performance in financial literacy in the 18 countries and economies that participated in this optional assessment. It also discusses the relationship of financial literacy to students’ and their families’ background and to students’ mathematics and reading skills. The volume also explores students’ access to money and their experience with financial matters. In addition, it provides an overview of the current status of financial education in schools and highlights relevant case studies. For more information see http://www.oecd.org/pisa/keyfindings/pisa-2012-results-volume-vi.htm

1. OECD EMPLOYER
BRAND
Playbook
1
PISA 2012
Students and Money
Financial literacy skills
9 July 2014
Launch

2. 2 PISA in brief
• Over half a million students…
– representing 28 million 15-year-olds in 65 countries/economies
… took an internationally agreed 2-hour test…
– Goes beyond testing whether students can
reproduce what they were taught…
… to assess students’ capacity to extrapolate from what they know
and creatively apply their knowledge in novel situations
– Mathematics, reading, science, problem solving (financial literacy)
… and responded to questions on…
– their personal background, their schools
and their engagement with learning and school
• Parents, principals and system leaders provided data on…
– school policies, practices, resources and institutional factors that
help explain performance differences .
…“knowledge and understanding of financial concepts and
risks, and the skills, motivation and confidence to apply such
knowledge and understanding in order to make effective
decisions across a range of financial contexts … to enable
participation in economic life”.
29 000 of these students in 18 economies took
the PISA test on financial literacy

3. 3
Why is financial literacy relevant for
15-year-old students?
Why is financial literacy relevant for
15-year-old students?
More students are
enrolling into
higher education.
In the US young
adults owed more
in 2012 than before
the financial crisis
And they were
more likely to be
falling into arrears
(% of all loans- some of
which are not yet in
repayment phase)

4. 0 20 40 60 80 100
Poland
Slovak Republic
Israel
Italy
Croatia
Czech Republic
Latvia
United States
Shanghai-China
OECD average-13
Spain
Flemish Community (Belgium)
France
Australia
Estonia
New Zealand
Slovenia
Percentage of students with a bank account
4 % of students with a bank account
%

5. 0 20 40 60 80 100
Shanghai-China
Poland
Israel
Latvia
United States
Flemish Community (Belgium)
Croatia
Italy
Slovak Republic
OECD average-10
France
Slovenia
Russian Federation
Estonia
Czech Republic
Percentage of students with a prepaid debit card
5 % with a prepaid debit card
%

6. PISA financial literacy
assessment framework
Content
Money and transactions
Planning and managing
finances
Risk and reward
Financial landscape
Processes
Identifying financial
information
Analyse information in
a financial context
Evaluate financial
issues
Apply financial
knowledge and
understanding
Contexts
Education and work
Home and family
Individual
Societal
8
8

7. 12 Examples of what this might mean for 15 year olds
• …if they go to the cinema, will they still have enough money for
the bus fare home? Or would it be better to buy pizza and
invite friends home?
Balance their priority
and plan what to spend
money on
• …a games console will need new games, a motorbike will need
fuel and tyres and services and so on.
Remember that some
of the purchases have
ongoing costs
• …Some emails that look like they came from their bank might
not be legitimate, they should know what to do if they are not
sure
Being alert
to possible fraud
• …If their phone gets stolen, they should ask their parents if it is
covered by their household insurance
Knowing what risk is
and what insurance is
meant for
• …they should know that if they buy a computer on credit they
will have to pay interest on the loan as well as paying the
advertised price for the computer
• …and they will realise that the less they repay of that loan each
month, the more they will pay in interest
Make an informed
decision about credit
12

8. How well prepared are 15-year-olds
to make financial decisions?
1313

9. Strong performance in
financial literacy
Low performance in financial literacy
Average performance
of 15-year-olds in
financial literacy
Figure VI.2.2
14
Shanghai-China
Flemish
Community
(Belgium)
EstoniaAustralia
New Zealand
Czech Republic Poland
Lativa
United States
France
Russian
FederationSlovenia Spain
Croatia
Israel
Slovak Republic
Italy
Colombia375
385
395
405
415
425
435
445
455
465
475
485
495
505
515
525
535
545
555
565
575
585
595
605
Mean score

10. 18%
26%
27%
19%
9%
United States
Distribution of performance
2%
5%
19%
32%
43%
Shanghai-China
Level 5
Level 4
Level 3
Level 2
Level 1
or below
Financial literacy
Performance levels
Top performers
Baseline
Students can apply their understanding of a wide range of financial terms and concepts to
contexts that may only become relevant to their lives in the long term. They can analyse
complex financial products and can take into account features of financial documents that
are significant but unstated or not immediately evident, such as transaction costs. They can
work with a high level of accuracy and solve non-routine financial problems, and they can
describe the potential outcomes of financial decisions, showing an understanding of the
wider financial landscape, such as income tax.
Students begin to apply their knowledge of common financial products and commonly
used financial terms and concepts. They can use given information to make financial
decisions in contexts that are immediately relevant to them. They can recognise the value
of a simple budget and can interpret prominent features of everyday financial documents.
They can apply single basic numerical operations, including division, to answer financial
questions. They show an understanding of the relationships between different financial
elements, such as the amount of use and the costs incurred.
15

11. 18%
26%
27%
19%
9%
United States
Distribution of performance
2%
5%
19%
32%
43%
Shanghai-China
Level 5
Level 4
Level 3
Level 2
Level 1
or below
Financial literacy
Performance levels
Top performers
Baseline
Students can apply their understanding of a wide range of financial terms and concepts to
contexts that may only become relevant to their lives in the long term. They can analyse
complex financial products and can take into account features of financial documents that
are significant but unstated or not immediately evident, such as transaction costs. They can
work with a high level of accuracy and solve non-routine financial problems, and they can
describe the potential outcomes of financial decisions, showing an understanding of the
wider financial landscape, such as income tax.
Students can apply their understanding of commonly used financial concepts, terms and
products to situations that are relevant to them. They begin to consider the consequences
of financial decisions and they can make simple financial plans in familiar contexts. They
can make straightforward interpretations of a range of financial documents and can apply a
range of basic numerical operations, including calculating percentages.Students begin to apply their knowledge of common financial products and commonly
used financial terms and concepts. They can use given information to make financial
decisions in contexts that are immediately relevant to them. They can recognise the value of
a simple budget and can interpret prominent features of everyday financial documents.
Students can only identify common financial products and terms and interpret information
relating to basic financial concepts. They can recognise the difference between needs and
wants and can make simple decisions on everyday spending.
16

12. 18
Sara receives this invoice in the mail
Sample Question: INVOICE
Question 1: Why was this invoice sent to Sarah?
A. Because Sarah needs to pay the money to Breezy Clothing.
B. Because Breezy Clothing needs to pay the money to Sarah.
C. Because Sarah has paid the money to Breezy Clothing.
D. Because Breezy Clothing has paid the money to Sarah.

13. 19
Sara receives this invoice in the mail
Sample Question: INVOICE
Question 2: How much has Breezy Clothing charged for
delivering the clothes?
Delivery charge in zeds:
…….............................……………………………………………...
10 zeds

14. 20
Sara receives this invoice in the mail
Sample Question: INVOICE
Question 3:
Sara notices that Breezy Clothing made a mistake in the
invoice. Sara ordered and received two T-shirts, not three.
The postage fee is a fixed charged.
What will be the total of the new invoice?
131
zeds

15. 23
NEW OFFER
Mrs Jones has a loan of 8000 zeds with FirstZed Finance. The annual interest rate on
the loan is 15%. Her repayments each month are 150 zeds.
After one year Mrs Jones still owes 7400 zeds.
Another finance company called Zedbest will give Mrs Jones a lona for 10 000 zeds
with an annual interest rate of 13%. Her repayments each month would also be 150
zeds
NEW OFFER- Question 1.
If she takes the Zedbest loan, Mrs Jones will immediately pay off her existing loan.
What are two other financial benefits for Mrs Jones if she takes the Zedbest loan?
1. …………………………………………………………………………………………………
2. …………………………………………………………………………………………………
Sample Question: NEW OFFER
She will be paying lower interests
She will have more money available

16. 0
5
10
15
20
25
30
35
40
45
50
Shanghai-China41.2
Fl.Com.(Belgium)16.7
NewZealand15.4
Australia11.7
Estonia9.5
CzechRepublic7.5
OECDaverage-137.9
UnitedStates7.3
Israel6.7
France7.1
Poland6.4
Slovenia5.2
SlovakRepublic4.6
Latvia3.9
RussianFederation2.6
Spain2.5
Croatia3.1
Italy1.8
Colombia0.4
Top performers
… among boys
… among girls
Top performers in financial literacy, by gender Tab V.4.6
26
9.7% of students are top performers
in financial literacy(OECD average):
they can solve problems such as
sample task NEW OFFER– and
possibly harder problems as well
Boys are more likely to be top performers
than girls, particularly in New Zealand,
Israel, Poland, France and the Flemish
Community (Belgium)
Percentage of top performers
in financial literacy and at least
in one other domain

17. 0
5
10
15
20
25
30
35
40
45
50
55
60
65
Shanghai-China
Estonia
FlemishCommunity
(Belgium)
Latvia
Poland
CzechRepublic
Australia
OECDaverage-13
NewZealand
Croatia
Spain
RussianFederation
Slovenia
UnitedStates
France
Italy
SlovakRepublic
Israel
Colombia
%
Low performers … among boys … among girls
Percentage of low-performing students
in financial literacy
Tab V.2.1
27
Across the OECD on average, 15% of
students do not reach the baseline
level of financial literacy – meaning
that they can solve only simple tasks
such as sample task INVOICE (if any)
Boys are more likely to be low performers
than girls, particularly in France, Israel,
Slovenia and the Slovak Republic

18. Skill gaps within countries
190
290
390
490
590
690
Colombia
Israel
SlovakRepublic
France
Italy
NewZealand
UnitedStates
Slovenia
RussianFederation
Spain
OECDaverage-13
Croatia
Australia
CzechRepublic
Poland
Latvia
FlemishCommunity(Belgium)
Estonia
Shanghai-China
95%
90%
75%
50%
25%
10%
5%
Top
Bottom
Countries ranked by 10th percentile of financial literacy performance
29

19. How does financial literacy relate
to other skills?
30

20. 200
300
400
500
600
700
800
200 300 400 500 600 700 800
Patterns of relative performance in financial literacy
Financial literacy performance relative to mathematics performance
Mathematics performance
Average relationship
between financial literacy
and mathematics
performance
Australia performs better-than-expected in financial literacy.
The difference between observed and expected performance is
larger among strong performers in mathematics
The Czech Republic perform better-
than-expected in financial literacy. The
difference between observed and
expected performance is larger among
low achievers in mathematics
France’s performance is lower-than-expected in
financial literacy. The gap between observed
and expected performance is similar at all
levels of mathematics performance.
34
Italy’s performance is lower-than-
expected in financial literacy. The gap
between observed and expected
performance is wider among high
achievers in mathematics.
Students in Israel perform as
expected in financial literacy at all
levels of mathematics performance

21. Israel
Colombia
Shanghai-China
Latvia
UnitedStates
OECDaverage-13
Croatia
Poland
SlovakRepublic
Spain
Estonia
FlemishCommunity(Belgium)
NewZealand
RussianFederation
Australia
CzechRepublic
France
Italy
Slovenia
-30
-20
-10
0
10
20
30%
Relative performance in financial literacy
Students' performance
in financial literacy is
lower than their
expected performance
Students' performance in
financial is higher than their
expected performance
35
Taking performance in mathematics
and reading into account

22. How are learning opportunities distributed?
4141

23. 0
2
4
6
8
10
12
14
16
18
20
Estonia
Italy
RussianFederation
Croatia
Australia
Fl.Com.(Belgium)
Poland
Shanghai-China
Colombia
Latvia
CzechRepublic
OECDaverage-13
Israel
Spain
France
Slovenia
UnitedStates
SlovakRepublic
NewZealand
Financial literacy Mathematics Reading
Percentageofvariationinperformance
explainedbysocio-economicstatus
Relationship between socio-economic status and performance
in financial literacy, mathematics and reading
Figure VI.3.6
42

24. What can be done
to enhance financial literacy
Improving the quantity/quality of teaching of…
…financial literacy as a cross-curricular domain ?
…financial literacy education as a separate subject ?
…conceptual foundations of math ?
…applied math ?
…other types of education?
…or is it all about out-of-school experiences?

25. -25
-15
-5
5
15
25
35
45
55
65
75
SlovakRepublic
Latvia
Italy
Croatia
Israel
Shanghai-China
CzechRepublic
Spain
UnitedStates
Australia
Poland
France
OECDaverage-13
Estonia
Fl.Com.(Belgium)
Slovenia
NewZealand
Financial literacy by bank account holding
(accounting for socio-demographic status)
Table VI.4.26
On average across OECD countries and economies,
students who hold a bank account score 21 points
higher than students with similar socio-economic
status who do not.
44

26. 0
10
20
30
40
50
60
70
80
90
100
Spain
Estonia
Israel
Slovenia
Croatia
Italy
France
Poland
Colombia
Shanghai-China
OECDaverage-13
RussianFederation
UnitedStates
NewZealand
Latvia
Australia
Fl.Com.(Belgium)
CzechRepublic
SlovakRepublic
Not available Available < 2 years Available ≥ 2 years
Student exposure to financial education46

27. 0 20 40 60 80 100
Not at all
1-4 hours a year
5-19 hours year
20-49 hours a year
50 or more hours a year
School curriculum
Financial literacy taught as a
separate subject
(100) (80) (60) (40) (20) 0
Poland
Spain
Estonia
Latvia
Croatia
Slovenia
Italy
Slovak Republic
Israel
OECD average-13
Shanghai-China
France
Czech Republic
Flemish Community…
Australia
Russian Federation
Colombia
New Zealand
United States
Financial education taught as a
cross-curricular subject
47

28. Exposure and financial literacyPerformanceinfinancialliteracy51
Australia
Colombia
Czech Republic
Flemish Community
(Belgium)
Latvia
New Zealand
OECD average-13
Poland
Russian Federation
Shanghai-China
Slovak Republic
United States
375
425
475
525
575
625
40 50 60 70 80 90 100
% of students in schools where the principal reports that financial literacy is available for at least 2 years

29. Australia
Colombia
Croatia
Czech Republic
Estonia
Flemish Community
(Belgium)
France
Israel
Italy
Latvia
New Zealand
OECD
average-13
Poland
Russian Federation
Shanghai-China
Slovak Republic
Slovenia
Spain
United States
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
0 10 20 30 40 50 60 70 80 90
% of students in schools where the principal reports that financial literacy is available
for at least 2 years
Exposure and relative performance
Students' performance in
financial is higher than their
expected performance
Students' performance
in financial literacy is
lower than their
expected performance
Relativeperformanceinfinancialliteracy,taking
performanceinmathematicsandreadingintoaccount52

30. 0
10
20
30
40
50
60
70
80
90
100
NewZealand
UnitedStates
Latvia
FlemishCommunity(Belgium)
SlovakRepublic
Australia
OECDaverage-13
Estonia
CzechRepublic
Colombia
Slovenia
Shanghai-China
Poland
Israel
RussianFederation
Croatia
France
Spain
Italy
%ofstudentsinschoolswhere…
Teachers People from the private sector People from the public sector People from NGOs
Providers of financial education in schools55

31. 0
10
20
30
40
50
60
70
80
90
100
Spain
Poland
RussianFederation
Israel
Croatia
Colombia
Shanghai-China
Estonia
OECDaverage-13
Australia
SlovakRepublic
NewZealand
UnitedStates
Latvia
Slovenia
CzechRepublic
Fl.Com.(Belgium)
50% OR MORE OF TEACHERS attended professional development in financial education
UP TO 50% OF TEACHERS attended professional development in financial education
NO TEACHERS attended professional development in financial education
Teachers professional development56

32. Thank you !
Find out more about PISA at www.pisa.oecd.org
• All national and international publications
• The complete micro-level database
Email: Andreas.Schleicher@oecd.org