AFin - Action-based Financial Literacy – Conceptualization, Assessment and Validation

• Applicant: Professor Dr. Manuel Förster
• Subject Area: General and Domain-Specific Teaching and Learning
• Term: since 2021
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 460770732

The financial literacy of citizens is not only relevant to their individual financial situation, but also has the potential to influence economies across borders. Financial literacy proves its worth in appropriate, financially competent action. In order to develop appropriate measures to promote the financial literacy of individuals, a holistic understanding of financial literacy is required that takes into account not only knowledge aspects but also motivational aspects, attitudes and, above all, financially competent action. A uniform framework for a competency model forms the basis for valid measurements of financial literacy and is a prerequisite for effective educational approaches. Existing financial literacy models and measurements in previous research only address individual dispositions and thus do not sufficiently bridge the gap to financial action. In addition, two strands can be identified with regard to the relationship between financial literacy and personal characteristics: Studies from the field of behavioral economics, among others, consider the connection between personal characteristics and financial actions without the mediator effects of financial literacy. Studies from the field of economic education, among others, focus on the connection between personal characteristics and different facets of financial literacy (such as knowledge and attitudes), whereby references to financial action are very rare.The network ties in with this research desideratum and aims as a first sub-goal to develop a model that describes financial literacy holistically and connects it with financial action. Based on this, existing test instruments and their constructs are to be measured and systematized, related to the developed model and analyzed in terms of their meaningfulness and their relation to action. In a third step, a concept is to be developed that will enable a validation of existing instruments and its outcomes with regard to financial action. In order to achieve these goals, six meetings are planned every six months, starting in the fall of 2021. The network and the circle of guests consists of national and international experts from the fields of economic and financial education, business administration and economics, validation and test development, as well as representatives of credit security and debt counselling. The findings from the network initiative will be published in two major publications and serve as a starting point for further, coordinated DFG follow-up projects.

• DFG Programme: Scientific Networks
• Co-Investigator: Professorin Dr. Mandy Hommel