Dorien Bangma

24 | CHAPTER 2 previously published procedures and translated and adapted for the Dutch population. In this chapter, information about the development, outcome measure(s) and administration of each test or questionnaire is described. Psychometric properties of the tests and questionnaires are described in chapters 3, 7 and 8 and critically discussed in chapter 9 . FCAI-NL: Financial Competence Assessment Inventory – NL The Financial Competence Assessment Inventory - NL ( FCAI-NL ) is a translated version of the original FCAI (Kershaw & Webber, 2008) and adapted in content for the Dutch financial situation. The test enables the evaluation of an individual’s financial competence, measuring both financial knowledge and judgment. The FCAI-NL consists of an item instruction handbook with 38 theoretical, practical and contextual questions about finances (Figure 2.2). The FCAI-NL has a multidimensional approach and differentiates six subscales based on the six dimensions of financial competence as described by Kershaw and Webber (2004; Webber et al., 2002): ‘Financial abilities’ (i.e., ability and knowledge to perform everyday financial tasks such as budgeting and paying bills; e.g., “Do you receive any bills, How do you recognize them?” or “What expenses do you need to allow for each pay period?” ), ‘Financial judgment’ (i.e., ability to set financial goals and identifying and understanding items on a bank statement and a health insurance brochure; e.g., “Suppose you receive no income, but you own a sum of money (say €500,000), with which you had to support yourself, what would you do with it?” or “From this bank statement, can you tell whether there is sufficient money to pay the electricity bill?” ), ‘Financial cognitive functioning’ (i.e., basic financial literacy and numeracy skills; e.g., “Please tell me the value of these coins and notes. How much do we have in total?” ), ‘Financial management’ (i.e., understanding of one’s assets, income sources and bank protocols; e.g., “Explain to me what Power of Attorney is.” or “Tell me what ‘assets’ are.” ), ‘Debt management’ (i.e., awareness of debts and the ability to successfully manage debts; e.g., “Have you ever received any default notices” or “Have you ever had legal action against you for debt?” ) and ‘Financial support resources’ (i.e., the assistance-seeking skills of an individual in a financial context; e.g., “Where would you go for financial advice and counselling?” ). Figure 2.2. Material of the financial competence assessment inventory – NL, consisting of an instruction handbook (i.e., FCAI item instructies ) and scoring form, Euro coins and fictious paper money, fictitious energy bill, bank statements, blank form for internet banking (not in picture), health insurance policy, health insurance registration form (not in picture) and a lunch menu.