Dorien Bangma

INTRODUCTION TO THE FDM TESTS | 23 As emphasized in chapter 1 , it is important to evaluate FDM comprehensively by evaluating financial competence, financial performance and contextual factors, in order to draw careful and deliberate conclusions about the FDM capability of an individual. Most of the FDM instruments available, however, focus on only one of the components of FDM capability and/or do not investigate contextual factors. Furthermore, none of these tests were until recently available in Dutch and/or suitable for the Dutch financial situation. Therefore, a new test battery including eight FDM tests and questionnaires has been developed. Each test or questionnaire focuses on a specific aspect of FDM, covering the components of financial competence and financial performance/contextual factors (Figure 2.1). All tests and questionnaires are based on FDS TDT IBQ IGT Financial Performance / contextual factors Financial Decision-Making Capability Test Battery Financial Knowledge Financial Judgment FDMI CDR FCAI FDM-I/D financial decision styles ability to make decisions with implications for the future impulsive buying tendency emotional decision-making / risky decision-making intuitive and deliberative decision-making decision-making capacity applying decision rules financial competence Test Aspect Figure 2.1. Subdivision of eight tests and questionnaires (i.e., the Financial Competence Assessment Inventory (FCAI), the Financial Decision-Making Interview (FDMI), the Competence in Decision Rules (CDR), the Financial Decision Styles (FDS) questionnaire, the Temporal Discounting Task (TDT), the Impulsive Buying Questionnaire (IBQ), the Iowa Gambling Task (IGT) and the Financial Decision-Making on Intuition or Deliberation (FDM-I/D) test) into one of the components of financial decision-making capability as described by Appelbaum et al. (2016), i.e., financial competence, financial performance and contextual factors. This division, however, should be interpreted with some nuance, as there may also be (partial) overlap between the aspects, tests and/or questionnaires. Financial Competence