The OECD released the results of an exam that aimed to assess the financial literacy of students in Australia, Belgium (Flemish Community), Shanghai-China, Colombia, Croatia, Czech Republic, Estonia, France, Israel, Italy, Latvia, New Zealand, Poland, Russia, Slovak Republic, Slovenia, Spain and the United States. As we have done with other OECD test results, we conducted a search of international news reports on the results of this exam by country. Note that aside from the deluge of results from US media sources, Australia and New Zealand were two countries that reported extensively on the results – with the Australian headlines distinctly contradictory. In general, much of the reporting focused on the fact that the majority of teenagers in the world don’t know enough about financial issues. The OECD noted that, similar to results on other OECD tests, student performance tends to fall along class lines, with “more socio-economically advantaged students scor[ing] much higher than less-advantaged students on average across participating OECD countries and economies.”
We also spoke with Anand Marri, Vice president and Head of Economic Education at the Federal Reserve Bank of New York, and Associate Professor at Teachers College Columbia University, about the results. He pointed out that the financial literacy of students likely reflects the financial literacy of teachers as well as other adults. Without a concerted effort to enable teachers to develop their financial literacy and to make financial literacy an explicit part of the curriculum, we should not expect many students to develop financial skills on their own. Yet in the United States, only 15 out of 50 states have graduation requirements related to personal literacy and the vast majority of social studies teachers have not taken more than one economics course. He also noted, as the OECD report pointed out, that financial literacy is highly correlated with performance in math and reading, but that it would be particularly interesting to know more about the teaching of financial literacy and the preparation of those who teach financial literacy in countries that score higher in financial literacy than their math and reading performance would predict (like Australia, the Czech Republic, Estonia, the Flemish Community of Belgium and New Zealand).
Central Eurpoe, Baltic countries:
Shanghai – China