Ranyard, R, Mcnair, S orcid.org/0000-0003-3111-234X, Nicolini, G et al. (1 more author) (2020) An Item Response Theory Approach to Constructing and Evaluating Brief and In‐depth Financial Literacy Scales. Journal of Consumer Affairs, 54 (3). pp. 1121-1156. ISSN 0022-0078
Abstract
We applied Item Response Theory (IRT) to construct and evaluate new brief and in‐depth financial literacy scales. A survey of a UK adult sample (N = 589) included 50 questions to assess knowledge about managing financial resources and competence in using personal finance‐related information – including five widely used items, on interest rates – inflation, investment diversification, mortgages and bonds. IRT applied to a scale of these items identified some limitations, overcome via further iterations to construct a new brief scale with sound psychometric properties. IRT was then applied iteratively to our pool, resulting in an in‐depth, 20‐item scale, also psychometrically sound, covering four broad financial domains: everyday money transactions; the concept of money; borrowing; and saving and investment. Parallel 10‐item sub‐scales were also evaluated. The validity of the new scales was demonstrated by regression analyses which found that, controlling for demographic variables, financial literacy predicted key indicators of financial well‐being.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2020 The Authors. Journal of Consumer Affairs published by Wiley Periodicals LLC on behalf of American Council on Consumer Interests. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes. |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 08 Jul 2020 13:35 |
Last Modified: | 25 Jun 2023 22:20 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/joca.12322 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:162990 |