Review on the assessment of financial literacy across the globe

Financial literacy is classically an effort to sculpt the need for financial education and explicate difference in financial outcomes. In order to appropriately define and measure financial literacy, it is important to understand the impact of financial education programs as well as the barrier to the effective financial decision. The present paper aims to review and analyse the various methods used in different studies to measure financial literacy across the world. To achieve this objective, various researches that measured financial literacy in the last ten years are considered. The study reveals that the methods applied for measuring the level of financial literacy in individuals are not consistent. They are diverse based on the objectives of the study as well as the definition of financial literacy. The findings present an insight into the assessment methods of financial literacy that may enable policymakers, educators and other stakeholders to formulate a standardised methodology to measure financial literacy.