Financial literacy in Italy
According to a paper of the Bank of Italy, Italian adults still lag behind their international counterparts when it comes to financial literacy. The survey was conducted at the beginning of 2020 on a sample of 2,000 adults with an age ranging from 18 to 79.
In Italy there is a wide variability of financial literacy amidst the population, depending on some important variables such as education – the most significant -, age, gender and geographical location.
Italians can be divided in four groups, characterized by increasingly high levels of financial knowledge: excluded, incompetent, competent and expert. On average their financial literacy still ranks low if compared with other countries, though the 2020 survey shows signs of improvement compared to 2017.
In the paper, published in December 2020 by the Bank of Italy, financial literacy indicator is the sum of the scores calculated for three factors: knowledge, behaviour and attitudes (to know more, please read the glossary below the infopgraphic).
The paper is authored by Giovanni D’Alessio, Riccardo De Bonis, Andrea Neri and Cristiana Rampazzi. You can find it here.
Are you curious to try answering to the questions used for the assessment of financial literacy in Italy? Go to page 25 of the paper.
The main outcomes of the survey are highlithed in the infographic below.
Financial literacy in Italy, 2020
1. Knowledge. The questions concern the understanding of the basic relationships useful for making financial choices: inflation, interest rates, difference between simple and compound interest rates and risk diversification.
2. Behaviour. The questions refer to the management of financial resources in the short and long term: setting financial objectives, planning of resources to be used for consumption, bill payments and savings in recent months.
3. Attitude. The questions reveal the orientation of individuals towards saving, especially precautionary saving, in a long-term perspective.
The survey was conducted by a specialized company between January and February 2020, before the outbreak of the COVID-19 pandemic. The interviews were conducted by professional interviewers on a sample consisting of about 2,000 adults, aged between 18 and 79.