A fascinating study on financial literacy assessed about half a million 15-year-olds from 15 countries on their knowledge of personal finances and ability to apply it to financial problems.
PISA 2015: Students’ Financial Literacy issued by the OECD in May 2017, using the same Pisa scoring system that ranks abilities in reading and maths.
The survey showed that;
- more than half of students hold a bank account, but almost two thirds do not have the skills to manage it and cannot interpret a bank statement.
- around one in four are unable to make simple decisions on everyday spending.
- Only one in ten understands income tax.
“Young people today face more challenging financial choices and more uncertain economic and job prospects given rapid socioeconomic transformation, digitalisation and technological change; however, they often lack the education, training and tools to make informed decisions on matters affecting their financial well-being,”
– OECD Secretary-General Angel Gurría, at the launch of the report in Paris
PISA results show that parents and families play an important role; when students discuss money matters with their parents, they have significantly higher financial literacy skills, even after accounting for differences in socio-economic background.
What can parents do to help?
For those interested in details, Read Further
- http://www.irishtimes.com/business/personal-finance/young-people-haven-t-a-financial-clue-oecd-study-finds-1.3094985
- http://www.oecd.org/finance/financial-education/pisa-2015-results-volume-iv-9789264270282-en.htm
- http://www.oecd.org/newsroom/many-teenagers-struggle-to-understand-money-matters.htm
- http://oecdeducationtoday.blogspot.sg/2017/05/dollars-and-sense-financial-literacy.html
