Students with a bank account scored 37 points higher, on average
Posted by Bryan Clagett, Geezeo on July 25, 2014
Ever hear of PISA? No, I’m not referring to the term commonly used in New England. PISA is the Programme For International Student Assessment, and earlier this year they released a study on student financial literacy, focusing on 15 year-olds. The findings should be rather alarming to all of us, that have any influence the retail banking industry.
Let me get to the bottom line. The study found that 15 year olds in Shanghai, China are more financially literate than American counterparts. In fact, Australia, Belgium. Czech Republic, Estonia, New Zealand and Poland, scored better than the US. Seriously? Yes, America ranks below the world average in financial literacy. American kids are failing to recognize the difference between needs and wants, make simple financial decisions on daily spending and they struggle to recognize the purpose of everyday financial documents such as invoices.