Rob Ranyard|Simon McNair|Gianni Nicolini|Darren Duxbury
An item response theory approach to constructing and evaluating brief and in?depth financial literacy scales
The Behavioural Insights Team|University of Rome Tor Vergata|Newcastle University
abstract applied item response theory irt construct evaluate new brief indepth financial literacy scales survey uk adult sample n 589 included 50 questions assess knowledge managing financial resources competence using personal financerelated informationincluding five widely used items interest rates inflation investment diversification mortgages bonds irt applied scale items identified limitations overcome via iterations construct new brief scale sound psychometric properties irt applied iteratively pool resulting indepth 20item scale also psychometrically sound covering four broad financial domains everyday money transactions concept money borrowing saving investment parallel 10item subscales also evaluated validity new scales demonstrated regression analyses found controlling demographic variables financial literacy predicted key indicators financial wellbeing