WASHINGTON – American teenagers earned average rankings in financial literacy, according to the results of an international study by the National Endowment for Financial Education.
The international financial literacy assessment found that teenagers in the U.S. struggle to demonstrate competitive financial knowledge in the international arena, based on results from 18 countries that participated in the Programme for International Student Assessment.
The study looked at the aptitude of 15-year-olds in planning and managing finances, dealing with bank accounts and monetary transactions, understanding taxes and savings, managing risks and rewards and comprehension of consumer rights and responsibilities in financial contracts. U.S. teenagers ranked between 8th and 12th place in the financial categories.
"I cannot say I am surprised to see that the U.S. ranks in the middle of the pack internationally in terms of youth financial capability. This is a clear indication that the subject needs to be taken seriously," said Ted Beck, president and CEO of the National Endowment for Financial Education.
"This ranking gives us a reference point for how we can progress in the future and, honestly, I think we are making headway," said Beck. "There are several excellent curricula available, more states have mandates in place, government is playing a positive role, and there is substantial research that validates the effectiveness of financial education.”