A fascinating study 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
Should you be worried?
If money matters to you, you should be prepared. Before you have money in your hand – you should know how to make good use of it. The more money you have or are likely to have, the more the preparation. If you do not learn how to make money work for you, you are most likely to end up working for money.
So, how to prepare? Where to start?
Right here – Kaleidoscope T&D is founded by financial literacy expert who specializes in financial literacy for kids, teens and young adults. Order and read our books. Or learn here online in Real World IQ.
