Construct validity of financial literacy

Various studies deal with the assessment of financial literacy. However, it is not always obvious whether actual competencies are assessed or if it is rather a measurement of knowledge or attitudes. Furthermore, it is questionable if the construct that is supposed to be assessed is valid. Using the Financial Literacy Study as an example, the following article describes how the underlying theoretical construct can be validated. The validation is based on the measurement of financial literacy through Rasch-modelled values, which are verified by means of structural equation models.