The AFin Network: Advancing Financial Literacy Through Systematisation, Modelling and Assessment—Introduction to the SpringerBrief

Abstract

Financial literacy is a key competence for individuals and society. Financial literacy empowers citizens to make informed decisions regarding budgeting, saving, and investing, thereby enhancing financial well-being, reducing vulnerability to financial crises, and contributing to economic stability and social equity. Despite its importance, there is a lack of clarity in terminology and comprehensive models that reflect the multifaceted nature of financial competence. To address this gap, the AFin network, funded by the German Research Foundation (DFG), aims to conceptualize financial comptence through three main objectives: (1) developing a holistic competence model that integrates cognitive, emotional, motivational, and behavioral aspects; (2) systematizing existing test instruments and underlying constructs; and (3) designing a holistic assessment approach that includes financial behavior. This interdisciplinary and international network brings together researchers from fields such as economics, educational psychology, and business education. The collaborative structure included working groups, expert inputs from various practitioners, and iterative discussions. Their collective work culminates in a SpringerBrief structured around concepts, frameworks, competence models, assessments, and a technology-based testing prototype. This chapter introduces the AFin research network and lays the groundwork for a more unified and action-oriented approach to financial education that is necessary for both academic advancement and practical implementation in education systems.