Content Validation and Content Validity Index Calculation of B40 Household’s Financial Literacy

Abstract

The purpose of this paper is to describe a systematic approach to measure content validity using a Content Validity Index (I-CVI) established by evidence and best practices on financial literacy among B40 households (low-income group) in Malaysia. Content validity represents the extent of a measured construct and is considered important to support the validity of research tools like questionnaires and consists of five sources of evidence specifically content, reaction process, internal structure, relationships with other variables, and consequences. Thus, B40 household financial literacy consisting of financial knowledge, financial behaviour, and financial attitudes were tested and analysed using the I-CVI.This study involved five economics education expert panels in Malaysia and the choice of the scale was made based on the best adaptation considerations and the collected data were analysed using I-CVI.I-CVI determined the content validity of each item where I-CVI value of 0.6 to 1 indicated very high content validity and is suitable to measure the construct while I-CVI value less than 0.6 were dropped. Based on the findings, the financial literacy constructs consisting of financial knowledge, financial behaviour, and financial validity had high content validity to measure the level of financial literacy of B40 households.The calculation of I-CVI in this study is done using empirical data from the expert scores and it is recommended that researchers use Exploratory Factor Analysis (EFA) to ensure the validity and reliability of the instruments.