Financial Education – How America Stacks Up

Is our country financially stupid?  Hardly.  But you might be surprised at some of the findings in a recent financial literacy report.  The report was run by Visa and gauges the financial strengths, but more importantly, the weaknesses of many different countries around the world.

And the winner is….

I’ll get right to the final results because I know that’s all you really care about anyway.  The USA came in fourth place in overall financial literacy.  We may not get to stand on the medal podium but I would say high fives are in order.  Topping the list was Brazil, followed by Mexico, Australia and then the good old USA.

But before we start slapping hands

I don’t want put a damper on this party but I do want to point out some of the findings.  After all there were a lot of people that worked really hard to put this study together and we don’t want their work to go overlooked.  A series of questions were asked to a boat load of people from each country and the results were compiled in a very clean looking report where each country is ranked for each question.

The question that caught my attention was: “To what extent would you say that teenagers and young adults understand money management basics and are adequately prepared to manage their own money?”  I hate to break it to you but the USA was almost dead last in this category, with a score of 18.5.  Keep in mind this is out of 100 possible points.  To translate: Americans don’t feel that teenagers and young adults are even close to being ready to handle their own money.

“We need to spend more time educating our youth about money, or we will pay the price”- Click to Tweet

 

Aside from this one slip up, the USA turned out some decent results in the other questions of the survey.  But the fact that we don’t think our kids can take care of themselves financially tells us exactly what we need to be focusing on.  You can see the full PDF report right here –>Financial Literacy Barometer 2012.

 

What are you doing to teach your kids (no matter how old) about how money works and how to manage their finances?  Tell us your story in the comment section below – nothing better than learning from each other!

 

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Nick D.

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