How Well Do American Young People Know How to Manage Money? Not so Well, New Data Suggests

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National Financial Educators Council

Mar 29, 2022, 08:36 ET

DALLAS, March 29, 2022 /PRNewswire/ -- The National Financial Educators Council (NFEC) tests youth and young adult financial literacy nationwide each year; they've assessed more than 130,000 participants over the past decade.

Last year the NFEC conducted its annual assessment of current knowledge around financial wellness topics among Americans. Among the 73,171 people who participated in the test, the following average scores were achieved by each of six age groups:

10 – 14 years old: 56.91%
15 – 18 years old: 64.22%
19 – 24 years old: 71.14%
25 – 35 years old: 76.20%
36 – 50 years old: 77.37%
51+ years old: 78.13%

For the full results, visit this link: https://www.financialeducatorscouncil.org/national-financial-literacy-test/

Questions on the test are formulated to measure participants' knowledge across the 10 essential subject areas laid forth in the NFEC's Financial Literacy Framework & Standards. This framework offers guidelines for educator qualification and optimal learner outcomes for personal finance education. The financial literacy test assesses three key factors that underpin a person's financial health: motivation to learn, topic knowledge, and ability to identify initial action steps toward improving one's personal finances.

To test your own knowledge, visit: https://www.financialeducatorscouncil.org/financial-literacy-test/

"According to these test results, Americans have a long way to go before they are prepared to make more informed financial decisions," comments Vince Shorb, the National Financial Educators Council's CEO. "Our youth and young adults need more financial education to ensure that they can confidently address near-term choices like moving out on their own, getting their first credit card, and deciding on student loan options."

According to the NFEC, understanding basic topic knowledge is just the first step toward greater financial wellness. Unlike many other subjects young people learn in high school, financial literacy requires much more than just memorizing facts. Learners must become capable to change their own financial behaviors and confident about their personal finance decision-making abilities.

In March, Financial Literacy Month (April) is right around the corner. The NFEC takes this opportunity to highlight results of three additional tests:

Financial Foundation Test: A brief 8-question quiz evaluates people's ability to make basic-level financial decisions. Among a total 30847 respondents, the average score was 71.92% and 47.10% failed to reach 70% or higher. https://www.financialeducatorscouncil.org/financial-foundation-test-results/
Advanced Financial Education Test: This money management test asks higher-level financial questions. The average score among the 12821 participants was 58.14% and 57.56% scored lower than 70%. See the full results:https://www.financialeducatorscouncil.org/advanced-financial-education-test-results/
Student Loan Test: This focused quiz was created to measure the ability of college students and college-bound high school students to make informed decisions about entering into student loans. A total of 8904 people participated, with an average score of 59.18% and a failure rate (below 70%) of 66.20%. Full results:https://www.financialeducatorscouncil.org/student-loans-financial-education-test-results/

These tests were spearheaded by the NFEC's Financial Literacy Testing and Survey Center. In this specialized testing center, individuals and organizations can access 30 complimentary online surveys and tests. Each test is automatically graded so scores are available immediately upon completion. Thus, individuals can learn their current financial capabilities and organizations can obtain tools to leverage toward achieving their unique financial education goals. Learn more at the Financial Literacy Testing and Survey Center assessment page.

The NFEC is an IACET Accredited social enterprise organization committed to improving financial wellness on a worldwide scale. The NFEC enlists advocates and organizations to spread the financial wellness message throughout communities by offering free tools, training, and resources. The Financial Literacy Test & Survey Center was developed to help establish benchmark measures of money management knowledge and validated instruments that determine the impact of financial education programs.

Contact:
Trevor Stoll
702.620.3059
[email protected]

SOURCE National Financial Educators Council