Methodology
RESOURCES
Capital One’s Digital Financial Literacy Index is a nationally representative, self-reported, anonymous survey of 3,000 randomly selected adults in the US. Participants were surveyed between July and August 2024.
All data in this report is from self-reported, anonymous research of U.S. consumers broadly, not specifically from or about Capital One customers or associates.
Respondents were asked a series of questions about financial literacy, digital literacy and digital banking behaviors. To measure financial literacy and digital literacy, the Insights Center used well-tested and validated questions sourced from other reputable studies.
For digital literacy, Capital One measured the knowledge consumers need to engage online safely rather than asking about their ability to use a smartphone or computer. This focus is in line with previous research on digital financial literacy that emphasizes the need for “awareness of digital financial risks,” such as phishing and spyware; acknowledges that digital literacy goes beyond technical know-how; and defines digital literacy as possessing the skills to “meaningfully, responsibly and safely participate in the digital ecosystem.”Respondents completed the survey online, which required them to have a baseline understanding of websites and/or mobile devices. Therefore, we asked more challenging questions that assumed a basic level of digital access.
About 93% of American adults use the internet, according to the Pew Research Center. More research is needed to understand digital financial literacy among Americans who do not have ready access to or do not report using the internet.
Consistent with past research, our measure of financial literacy focused on core financial topics such as credit, debt and interest. Modeling the Organisation for Economic Co-operation and Development (OECD)’s approach to measuring financial literacy, we defined a minimum target score to establish financial literacy and digital literacy. The target score was a simple majority of 4 out of 6 correct questions for each literacy index.
A respondent is considered to be digitally financially literate if they attained the minimum target score for both digital and financial literacy. The results were not weighted.
About the Capital One Insights Center
The Center combines Capital One research and partnerships to produce insights that advance equity and inclusion. As a nascent platform for data and dialogue, the Center strives to help changemakers create an inclusive society, build thriving communities and develop financial tools that enrich lives. The Center draws on Capital One’s deep market expertise and legacy of revolutionizing the credit system through the application of data, information and technology.
Disclaimer
This material has been prepared by the Capital One Insights Center, a non-partisan center for objective research and insights, and is provided solely for general information purposes. Unless otherwise specifically stated, any views, analysis or opinions expressed herein are solely those of the Capital One Insights Center’s staff, researchers and listed partners (if applicable) and may differ from the views and opinions expressed by Capital One Financial Corporation, other departments or divisions of Capital One Financial Corporation, or its affiliates and/or subsidiaries (Capital One). Information has been obtained from sources believed to be reliable.
The data relied on for this report are based on self-reported survey data from anonymous respondents across the U.S. Survey respondents included may or may not have relationships with any number of financial institutions and/or products. Capital One Insights Center does not know, nor is it able to determine, if any of the survey respondents have a relationship with Capital One. Certain information herein is also based on data obtained from third-party sources believed to be reliable.
Analysis and conclusions constitute the Capital One Insights Center’s judgment as of the date of this report and are subject to change without notice. Furthermore, the analysis and views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date of publication.
Any opinions expressed herein should not be construed as an individual recommendation for any particular customer or client and is not intended as advice or recommendations of particular securities, financial instruments, market conditions or strategies. Capital One Financial Corporation and its affiliates and/or subsidiaries may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report.
