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 4 th International INAP Conference Beijing, May 26 th and 27 th, 2011

Dezember Overview Mai 2011 n 4 th International INAP Conference, Beijing (China)Dr. Carmela Aprean 1Problem context 2Review of prior research 3Conceptual foundation of the assessment instrument 4Field-testing of the assessment instrument 5Preliminary results 6Conclusions and suggestions for future research

Dezember 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) is important because of … … shifting demographic profiles … changing financial markets 4 th International INAP Conference, Beijing (China)

Dezember 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. 4 th International INAP Conference, Beijing (China) (e.g., OECD 2005; Reifner, 2006)

Dezember Conceptual foundation Mai 2011 n Dr. Carmela Aprean4 th 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 Mai 2011 n Dr. Carmela Aprean Conceptual foundation Individual characteristics Factual, conceptual, procedural, meta-cogn. Situational characteristics Task characteristics (Gibson: Affordances/Constraints) changes Decision product (II) Mentale(s) Modell(e) ) Mental) Model(s) Decision product (I) Performance Planning financial decisions Executing financial decisions Controlling financial decisions Further situational conditions Competence-based working model Decision process Motivations & interests Attitudes & values Knowledge & skills 4 th International INAP Conference, Beijing (China)

Dezember 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: years 50 percent female 4 th International INAP Conference, Beijing (China)

Dezember Mai 2011 n Dr. Carmela Aprean Field-testing Informational part Assessment questionnaire Subjective partObjective part Demographic characteristics Money at disposal Average revenues & expenditures Availability of bank account Major financial education agents Future professional plans Importance of money/ financial issues Preparedness for financial issues Interest in financial topics Awareness of sound financial decision making Attitudes and values concerning consumption, saving and indebtedness Planning financial decisions (8 items) 4 th 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 Mai 2011 n Dr. Carmela Aprean Preliminary results Subjective partObjective part Item analyses.48 < degree of difficulty < < discriminatory power < < internal consistency < < inter-rater consensus < < degree of difficulty < < discriminatory power < < internal consistency < < 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) 4 th International INAP Conference, Beijing (China)

Dezember 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 4 th International INAP Conference, Beijing (China)

Dezember 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 4 th International INAP Conference, Beijing (China)

Dezember Mai 2011 n Dr. Carmela Aprean4 th International INAP Conference, Beijing (China) Back