American Teen Financial Literacy

The Organization for Economic Co-operation and Development is out with its first look at teen financial literacy. It looked at 18-countries and tried to determine if 15-year-olds have the financial literacy and skills needed in today’s world. Michael Davidson of the Organization for Economic Co-operation and Development’s Early Childhood Education and Schools Division says that mathematics is key in financial education. “Financial literacy skills are strongly related to mathematics, so building those mathematical foundation core skills is going to be important.” The United States rates were merely average, adds Davidson. “The United States came out with a middle ranking amongst those countries; significantly well ahead of the lowest performing country, which was Colombia, but equally along way behind the highest country, which was Shanghai, China.” Davidson says they plan to do another survey next year, and with more countries adding financial education in school, it will be interesting to see if a particular teaching technique breaks through. “Many countries are introducing financial education programs in schools, the United States being one of them and it is really too early to see what different model and approach works best?” The United States ranked ninth in the Organization for Economic Co-operation and Development’s inaugural teen financial literacy report.