Financial Culture Index: Design and Measurement Approaches

The paper analyses different approaches to measuring financial literacy and financial culture. The Strategy for Improving Financial Literacy and Developing Financial Culture Until 2030, adopted in Russia in 2023, distinguishes between the definitions of financial literacy and financial culture, as they could be different regulatory objects. While there is considerable experience in measuring financial literacy, the measurement of financial culture requires developing new approaches and methods. The methodology for the pilot calculation of the financial culture index adopted in Russia in 2023 provides for the framework parameters of calculation and composition of its components that the financial culture is decomposed into, such as responsibility, long-term orientation, and trust. The methodology involves a combination of survey and statistical data. The paper aims to propose definitions of the financial culture components, to evaluate the appropriateness of the statistical measures contained in the pilot calculation methodology with regard to their relevance and completeness in describing the components, and to highlight problems and directions for improving the methodology.