Many Teenagers Struggle With Money Matters

Swapna Mirashi
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?