An item response theory approach to constructing and evaluating brief and in‐depth financial literacy scales

• Published in: The Journal of consumer affairs Vol. 54; no. 3; pp. 1121 - 1156
• Main Authors: Ranyard, Rob, McNair, Simon, Nicolini, Gianni, Duxbury, Darren
• Format: Journal Article
• Language: English
• Published: Malden, USA Wiley Periodicals, Inc 01.09.2020; Blackwell Publishing Ltd
• Subjects: Bonds; Economic well being; Financial literacy; Inflation; Interest rates; Investments; Item response theory; Literacy; Money; Mortgages; Personal finance; Property; Psychometrics; scale development; Well being

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—includin...