SAN FRANCISCO, March 31, 2016 /PRNewswire/ -- How much do you know about personal finance? That's what 11,960 participants from across the U.S. wanted to find out. People representing all 50 states took the NFEC's National Financial Literacy Test – a 30-question quiz designed to measure teens' and young adults' ability to earn, save, and grow money. Average financial capability score among this nationwide sample was 60.35% for 15 to 18 year olds (63.64% for all ages). Read the full results on the Financial Literacy Testing & Survey Center results page.
The test was created for 15- to 18-year-olds and 45% of the participants failed, that is, scored 60% or lower. The test questions assess the 10 subjects covered in the Financial Literacy Framework & Standards and were written to measure three key financial wellness areas: motivation to learn, topic knowledge, and recognition of the first step to take toward securing one's financial future.
The multiple choice question missed most often by participants was: "If I invest $100 per month starting at age 21, and that money earns a 7% annual return, how much will I have after 70 years?" The choices were: A. $138,957, B. Between $150,000 and $225,000, C. More than 1.5 million dollars, and D. None of the above. Only 28% respondents answered the question correctly.
The NFEC also released data on 2 other tests – Advanced Financial Education Test (average score 52.53% and a 55% fail rate) Financial Foundations Test (average score 45.28% and a 77% fail rate). The results of these tests and information on the Student Loan Financial Education Test can be found at https://www.financialeducatorscouncil.org/financial-literacy-test/
The NFEC's Financial Literacy Testing & Survey Center provides more than tests and surveys at no cost. Individuals and organizations are welcome to leverage these online, automatically-graded measurement tools for self-assessment and to help reach their financial literacy programming goals. Visit the Financial Literacy Test & Survey Center assessment page for more information.
The National Financial Educators Council is a social enterprise organization committed to improving people's financial capability worldwide. The NFEC develops tools, resources, and training to help organizations and individuals share the message of financial literacy at the community level. The NFEC's Financial Literacy Test & Survey Center is one such tool that organizations can use to measure program effectiveness and a baseline of participant knowledge about personal finance.
Contact Trevor Stoll at 775.549.0213
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/national-financial-literacy-test-results-are-in-more-than-11000-participate-300243878.html
SOURCE National Financial Educators Council