Measuring financial skill: A guide to using the Bureau of Consumer Financial Protection's Financial Skill Scale
Financial skill is widely understood to be a key element of financial literacy and capability. In addition to a knowledge component, financial capability has an action component—the skills to put financial knowledge to use. These skills are powerful because they can be applied to all kinds of financial decisions, even those that are new and unfamiliar, by adults of any age. In order to conduct further to provide researchers and practitioners with a standard, reliable, and broadly available way to measure an individual’s level of financial skill, the Bureau led a rigorous research effort to develop and test a set of questions—a "scale"—to measure financial skill. This guide describes the research behind the Bureau’s Financial Skill Scale and provides detailed steps for using it, including how to score individuals’ responses and compare their scores.