Following the first PISA financial literacy test taken by 29.000 students from 13 OECD member states and five partner countries, the results could not be more staggering.
Among OECD countries, only less than a third of the 15-year-old test takers could correctly answer questions put in the second-most difficult category.
There is significant room for improvement and it is not too late for policymakers to assume responsibility for financial literacy. However, financial education faces two problems.
First of all, it is difficult to influence financial education and curricula at school level. What’s more is that several studies have shown that taking a personal finance course in school has no impact on investment knowledge and financial issues other than managing personal finances.
Most strikingly, courses in personal financial taken at an early age do not seem to have any influence on financial competence and behavior in adult life.
It is time to ask whether our society should prioritize financial education for adults rather than providing courses for high-school students.
Please read more in The Economist article "Back to Basics".