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Italian people’s financial literacy: the results of the Bank of Italy’s 2020 survey

Author

Listed:
  • Giovanni D’Alessio

    (Banca d'Italia)

  • Riccardo de Bonis

    (Banca d'Italia)

  • Andrea Neri

    (Banca d'Italia)

  • Cristiana Rampazzi

    (Banca d'Italia)

Abstract

The paper analyses the results of the survey on the financial literacy of Italian adults, conducted by the Bank of Italy in early 2020. In line with the OECD’s methodology, the financial literacy indicator is the sum of the scores calculated for three factors: knowledge, behaviour and attitudes. The survey confirms that Italy lags behind by international standards, as already noted in the 2017 survey. Compared with 2017, the new survey shows that Italian people’s financial knowledge has improved, while their behaviour and attitudes have essentially remained stable. Financial literacy varies among the population according to the education levels – the most significant variable – gender, age and geographical location of those interviewed. An econometric analysis focused on knowledge – the most reliable component – shows that Italians can be divided into four groups, characterized by increasingly high levels of financial knowledge: excluded, incompetent, competent and expert. Between 2017 and 2020, the number of excluded and incompetent individuals in the population has decreased, whereas that of competent, and to a lesser extent, of expert individuals has increased.

Suggested Citation

  • Giovanni D’Alessio & Riccardo de Bonis & Andrea Neri & Cristiana Rampazzi, 2020. "Italian people’s financial literacy: the results of the Bank of Italy’s 2020 survey," Questioni di Economia e Finanza (Occasional Papers) 588, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_588_20
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2020-0588/QEF_588_20.pdf
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    References listed on IDEAS

    as
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    3. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    4. Angela Romagnoli & Maurizio Trifilidis, 2015. "Does Financial Education at School work? Evidence from Italy," Rivista Bancaria - Minerva Bancaria, Istituto di Cultura Bancaria Francesco Parrillo, issue 1, January -.
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    Cited by:

    1. Gallo, Giovanni & Sconti, Alessia, 2023. "How much financial literacy matters? A simulation of potential influences on inequality levels," GLO Discussion Paper Series 1266, Global Labor Organization (GLO).

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    More about this item

    Keywords

    financial literacy; knowledge; behaviour and attitudes; Survey on Household Income and Wealth (SHIW);
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General

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