Money Matters: New OECD Report Grades Students’ Financial Literacy
With money management the new buzz phrase of post-recession America, teenage indifference to budgets can cost families — and eventually the teens themselves — big bucks. Knowing how to mind the cents can be the difference between affording a down payment and declaring bankruptcy. And increasingly, more groups are arguing those fiscal smarts should be imparted to high schoolers.
For the first time, the Organization for Economic Cooperation and Development (OECD) assessed the financial literacy of 15-year-olds in 65 countries, including the United States. Aspects of financial literacy tested, as part of the international PISA assessment, included:
- Dealing with bank accounts and credit/debit cards
- Planning and managing finances
- Understanding taxes and savings
- Risk and rewards
- Consumer rights and responsibilities in financial contracts