Advertisement

Financial Literacy of Adolescents and Young Adults: Setting the Course for a Competence-Oriented Assessment Instrument

  • Carmela ApreaEmail author
  • Eveline Wuttke
Chapter

Abstract

This chapter presents research activities that aimed at contributing to an educationally sound financial literacy assessment for adolescents and young adults. In particular, it describes the development and pilot testing of a first version of a competence-oriented assessment instrument involving 198 secondary students in Germany. The instrument mainly consists of 23 test items that intended to mirror different phases of financial decisions. Moreover, self-reports on motivational and attitudinal aspects as well as questions on students’ socio-demographic background were included. The study intended to exemplarily test the items on financial literacy. The results of the pilot testing are reported and discussed with regard to implications for further development of the assessment instrument.

Keywords

Authentic financial literacy assessment Competence measurement Item construction Situational judgment testing 

References

  1. ANZ Banking Group. (2008). Survey of adult financial literacy in Australia. Available at http://www.anz.com/about-us/corporate-responsibility/community/financial-literacy-inclusion/research/.
  2. Aprea, C. (2012). Messung der Befähigung zum Umgang mit Geld und Finanzthemen: Ausgewählte Instrumente und alternative diagnostische Zugänge. bwp@ Berufs- und Wirtschaftspädagogik—online, Vol. 22, http://www.bwpat.de.
  3. Aprea, C., Ebner, H. G., & Müller, W. (2010). „Ja mach nur einen Plan …“ - Entwicklung und Erprobung eines heuristischen Ansatzes zur Planung kompetenzorientierter wirtschaftsberuflicher Lehr-Lern-Arrangements. Wirtschaft und Erziehung, 4(2010), 91–99.Google Scholar
  4. Aprea, C., & Wuttke, E. (2013). Modelling and measuring financial competence in vocational education and training (VET) Contexts. Internal working paper, Lugano & Frankfurt.Google Scholar
  5. Arthur, C. (2011). Financial literacy in Ontario: Neoliberalism, Pierre Bourdieu and the citizen. Journal for Critical Education Policy Studies, 9(1), 188–222.Google Scholar
  6. Atkinson, A., & Messy, F. (2012). Measuring financial literacy. OECD Working Papers on Finance, Insurance and Private Pensions, No. 15. Paris: OECD Publishing.Google Scholar
  7. Autorité des Marchés financiers (AMF). (2005). Pour l’éducation économique et financière des épargnants. Available at http://www.amf-france.org/documents/general/6080_1.pdf.
  8. Berti, A. E., & Bombi, A. S. (1988). The child’s construction of economics. Cambridge: Camebridge University Press.Google Scholar
  9. Biesta, G. (2009). Good education in an age of measurement: On the need to reconnect with the question of purpose in education. Educational Assessment, Evaluation and Accountability (formerly: Journal of Personnel Evaluation in Education), 21(1), 33–46.Google Scholar
  10. Bühner, M. (2006). Einführung in die Test- und Fragebogenkonstruktion. Munich: Pearson.Google Scholar
  11. Commerzbank. (2003). Finanzwirtschaftliches Grundwissen der deutschen Bevölkerung: Präsentation der Studienergebnisse. Unpublished manuscript, Frankfurt.Google Scholar
  12. Davies, P., Syed, F., & Appleyard, L. (2013). Secondary school students’ understanding of the financial system. Paper Presented at the 15th Biennial EARLI Conference for Research on Learning and Instruction, Munich, Germany, August 27–31, 2013.Google Scholar
  13. De Meijer, L.A.L. & Born, M. Ph. (2009). The situational judgement test: Advantages and disadvantages. In M. Born, C.D. Foxcroft & R. Butter (Eds.), Online readings in testing and assessment, international test commission. Available at http://www.intestcom.org/Publications/ORTA.php Accessed March 2013.
  14. Ebner, H. G. (2005). Instruktionstheoretische Grundlagen der Gestaltung wirtschaftsberuflicher Lernumgebungen. Manuskript zur Vorlesung an der Universität Mannheim.Google Scholar
  15. Financial Service Authority (FSA). (2006). Financial capability in the UK. Consumer Research Study No. 47b. London: FSA.Google Scholar
  16. Frese, M., & Zapf, D. (1994). Action as the core of work psychology: A German approach. In Handbook of industrial and organizational psychology (Vol. 4, pp. 271–340).Google Scholar
  17. Garman, A. N., Johnson, M. P., & Howard, D. M. (2006). Development of a situational judgment test to assess educational outcomes. Poster presented at the annual meeting of the Society of Industrial/Organizational Psychologists, Dallas, TX, May 2006.Google Scholar
  18. Hacker, W. (2003). Action regulation theory: a practical tool for the design of modern work processes? European Journal of Work and Organizational Psychology, 12(2), 105–130.CrossRefGoogle Scholar
  19. Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316.CrossRefGoogle Scholar
  20. Jesiek, B. K., & Woo, S. E. (2011). Realistic assessment for realistic instruction: Situational assessment strategies for engineering education and practice. In: J. Bernardino & J. C. Quadrado (Eds.), Proceedings of the World Engineering Education Flash Week (WEE2011), Lisbon, Portugal (pp. 205–212), 27–30 September 2011.Google Scholar
  21. Johnson-Laird, P. N. (1983). Mental models. Cambridge, MA: Harvard University Press.Google Scholar
  22. Jonassen, D. H., & Rohrer-Murphy, L. (1999). Activity theory as a framework for designing constructivist learning environments. Educational Technology Research and Development, 47(1), 61–79.CrossRefGoogle Scholar
  23. Jonassen, D. H., Tessmer, M., & Hannum, W. H. (1999). Task analysis methods for instructional design. Mahwah, NJ: Lawrence Erlbaum Associates.Google Scholar
  24. Leontjev, A. N. (1978). Activity, consciousness, and personality. Englewood Cliffs, NY: Prentice-Hall.Google Scholar
  25. Leutner, D., Hartig, J., & Jude, N. (2008). Measuring competencies: Introduction to concepts and questions of assessment in education. In J. Hartig, E. Klieme, & D. Leutner (Eds.), Assessment of competencies in educational contexts (pp. 177–192). Göttingen: Hogrefe.Google Scholar
  26. Lievens, F., & Sackett, P. R. (2006). Video-based versus written situational judgment tests: a comparison in terms of predictive validity. Journal of Applied Psychology, 91(5), 1181–1188.CrossRefGoogle Scholar
  27. Lucey, T. A. (2005). Assessing the reliability and validity of the Jump$tart Survey of Financial Literacy. Journal of Family and Economic Issues, 26(2), 283–294.CrossRefGoogle Scholar
  28. Lusardi, A., & Mitchell, O. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.CrossRefGoogle Scholar
  29. Mandell, L. (2008). The financial literacy of young American adults. Available at http://www.jumpstart.org.
  30. Marcolin, S., & Abraham, A. (2006). Financial literacy research. In P. Basu, G. O’Neill & A. Travaglione (Eds.), Proceedings of the 3rd International Conference on Contemporary Business, Leura NSW, September 2006.Google Scholar
  31. Mayrath, M. C., Clarke-Midure, J., Robinsohn, D. H., & Schraw, G. (2012). Technology-based assessments for 21st century skills: Theoretical and practical implications from modern research. Charlotte, NC: Information Age Publishing Inc.Google Scholar
  32. McDaniel, M. A., & Nguyen, N. T. (2001). Situational judgment tests: A review of practice and constructs assessed. International Journal of Selection and Assessment, 9(1/2), 103–113.Google Scholar
  33. Miller, G. A., Galanter, E., & Pribram, K. A. (1960). Plans and the structure of behaviour. New York: Holt, Rhinehart, & Winston.CrossRefGoogle Scholar
  34. Nguyen, N. T., Biderman, M., & McDaniel, M. A. (2005). Effects of response instructions on faking in a situational judgment test. International Journal of Selection and Assessment, 13(4), 250–260.CrossRefGoogle Scholar
  35. OECD. (2005). Improving financial literacy. Paris: OECD Publishing.Google Scholar
  36. Pinto, L. (2013). When politics trump evidence: financial education literacy narratives following the global financial crisis. Journal of Education Policy, 28(1), 95–120.CrossRefGoogle Scholar
  37. PISA. (2012). Financial literacy assessment framework. Available at http://www.oecd.org/pisa/pisaproducts/46962580.pdf. Accessed March 2013.
  38. Ployhart, R. E., & Ryan, E. M. (1998). Applicants’ reactions to the fairness of selection procedures: the effects of positive rule violations and time of measurement. Journal of Applied Psychology, 83(1), 3–16.CrossRefGoogle Scholar
  39. Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44(2), 276–295.CrossRefGoogle Scholar
  40. Saylor, S. T., Fishman, J. A., & Galguera, T. (2003). Introduction to test construction in the social and behavioural sciences. London: Rowman & Littlefield.Google Scholar
  41. Schmeiser, D. M., & Seligman, J. S. (2013). Using the right yardstick: Assessing financial literacy measures by way of financial well-being. Journal of Consumer Affairs, 47(2), 243–262.CrossRefGoogle Scholar
  42. Shavelson, R. J. (2008). Reflections on quantitative reasoning: An assessment perspective. In B. L. Madison & L. A. Steen (Eds.), Calculation vs. context: Quantitative literacy and its implications for teacher education (pp. 27–44). Washington, DC: Mathematical Association of America.Google Scholar
  43. Shavelson, R. J. (2012). Assessing business-planning competence using the Collegiate Learning Assessment as a prototype. Empirical Research in Vocational Education and Training, 4(1), 77–90.Google Scholar
  44. Vygotsky, L. S. (1962). Thought and language. Cambridge, MA: University Press Group Ltd.CrossRefGoogle Scholar
  45. Warmath, D. (2012). Does financial literacy improve financial outcomes. University of Wisconsin-Madison Working Paper.Google Scholar
  46. Weekley, J. A., Ployhart, R. E., & Holtz, B. C. (2006). On the development of situational judgment tests. In J. A. Weekley & R. E. Ployhart (Eds.), Situational judgment tests: Theory, measurement and application (pp. 157–182). Mahwah, NJ: Lawrence Erlbaum Associates.Google Scholar
  47. Weinert, F. E. (2001). Concept of competence. In L. H. Salganik (Ed.), Defining and selecting key competencies (pp. 45–65). Seattle: Hogrefe.Google Scholar
  48. Whetzel, D. L., & McDaniel, M. A. (2009). Situational judgment tests: An overview of current research. Human Resource Management Review, 19, 188–202.CrossRefGoogle Scholar
  49. Wilson, M. (2005). Constructing measures. Mahwah, NJ: Lawrence Erlbaum Associates.Google Scholar
  50. Wuttke, E. (2013). Knowledge and interest in financial issues—findings of a pilot study. Paper presented at the 15th Biennial EARLI Conference for Research on Learning and Instruction, Munich, Germany, August 27–31, 2013.Google Scholar

Copyright information

© Springer Science+Business Media Singapore 2016

Authors and Affiliations

  1. 1.Chair of Business and Economics EducationFriedrich Schiller University JenaJenaGermany
  2. 2.Chair of Business and Economics EducationGoethe University FrankfurtFrankfurtGermany

Personalised recommendations