Measuring financial capability: An exploratory study

Financial Services Authority

In 2003, the Financial Services Authority (FSA) launched a new initiative to develop and implement a national strategy for financial capability. This included the establishment of a Financial Capability Steering Group, which identified seven priorities that are being explored by specially convened working groups. In the 2004 progress report, it was noted that the FSA would commission a ‘comprehensive baseline survey to establish the current state of financial capability in the UK’, which would also be used to inform the evaluation of individual pilot projects that will be set up within the strategy.

The overall aim of this exploratory qualitative study was, therefore, to design a baseline survey to measure levels of financial capability in the UK.

A separate, but linked, study was carried out by Ethnos Research and Consultancy who tested the questionnaire for cultural sensitivity.

The findings of the methodological study are reported in Measuring financial capability: an exploratory study, which was published in June 2005. To download the report in pdf format click here.

Using this instrument, a national survey of financial capability was carried out during summer 2005. The data has been used to design a scoring system against which individuals' financial capability can be measured. For further details of the main survey, or to download the full report, please click here.