LAS VEGAS, March 16, 2023 /PRNewswire/ — According to the results of an annual test reported by the National Financial Educators Council (NFEC), levels of financial literacy among American youth and young adults remain low. The NFEC has been gathering financial literacy data across all 50 states since 2014, with more than 150,000 people participating in the quizzes to date. The most recent findings, from January 2023, indicate that 52% of the 45,916 participants aged 15 to 18 were unable to pass the NFEC’s National Financial Literacy Test with a score of 70 or better.
The 30-question quiz measures respondents’ capability to earn, save, and grow their personal finances, using questions centered around the core topics defined in the NFEC’s Financial Literacy Framework & Standards. Although the test was originally designed for 15- to 18-year-olds, everyone is welcome to participate and data from all age groups are reported.
In this year’s findings, the average test scores break down by age group as follows:
10 – 14 years old: 56.62%
15 – 18 years old: 63.84%
19 – 24 years old: 70.86%
25 – 35 years old: 76.04%
36 – 50 years old: 77.27%
51+ years old: 77.98%
You can view the full results at this link: https://www.financialeducatorscouncil.org/national-financial-literacy-test/
If you’re interested in taking the test yourself, visit: https://www.financialeducatorscouncil.org/financial-literacy-test/
As the results illustrate, the U.S. shows room for improvement in current financial literacy knowledge across all age segments, particularly among youth and young adults. And given that a score of 70% or higher represents the passing criterion, even a proportion of 16% of participants aged 51+ failed the test.
In its standards, the NFEC lays out 10 core financial literacy topics that are essential to make informed personal finance decisions in today’s economic landscape. The framework also provides benchmarks that define optimal teacher qualifications and learner outcomes for financial education. The annual test gauges content knowledge and people’s attitudes toward money, motivation to learn, and understanding of the first action steps toward improving their finances.
The organization takes advantage of this time to emphasize findings from three additional tests:
- Financial Foundation Test: This brief 8-question quiz measures capability to make basic-level financial decisions. Among a total 9131 respondents aged 15-18, the average score was 57.81% and 62.8% failed to reach 70% or higher. https://www.financialeducatorscouncil.org/financial-foundation-test-results/
- Advanced Financial Education Test: This test assesses advanced-level personal finance capabilities. The average score among the 5167 15- to 18-year-old participants was 46.16% and 68.14% scored lower than 70%. For 12,821 participants of all ages the average score was 58.14% See the full results: https://www.financialeducatorscouncil.org/advanced-financial-education-test-results/
- Student Loan Test: This quiz focuses on the ability of college students and college-bound high school students to make informed decisions about taking on student loans. A total of 5564 youth and young adults participated, with an average score of 55.64% and a failure rate (below 70%) of 73.05%. Full results: https://www.financialeducatorscouncil.org/student-loans-financial-education-test-results/
The NFEC created its Financial Literacy Testing and Survey Center to field and report on these tests and more. The center offers more than 30 online tests and surveys that individuals and organizations may access complimentary. Test-takers receive their grades automatically upon completion, so they can leverage the learning to acquire more information and move closer to reaching their financial education goals.
The National Financial Educators Council is a financial wellness organization with a mission to provide top-quality financial education. The NFEC’s commitment to making positive social impact is highlighted by its recent designation as an IACET Accredited Provider Certified B Corporation. The organization conducts a variety of research initiatives to provide the latest data on financial literacy and financial education impact to stakeholders in the industry.
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SOURCE National Financial Educators Council
