The Global Financial Literacy Excellence Center (GFLEC) conducted extensive research into the barriers that prevent schools from implementing financial education. This research consisted of focus groups and in-depth interviews with teachers, parents, students, and experts. It was further complemented by a thorough review of existing research on financial education.
Young people drive our economies—and our future—but most of them have never learned to save, manage, and invest their money. A financial education program is one of the most effective ways to teach money management at an early age and lay a foundation for success later in life.
Pioneers in the field of financial literacy designed three simple questions that measure the ABC’s of financial literacy, known as the Big Three. Many people find the questions challenging. How about you?
The PISA results are broken down into five levels of financial literacy proficiency. Students at Level 1 lack even the most basic financial literacy skills. That’s where 18 percent of U.S. students were found in 2012. This means that about one of every five teenagers is not equipped to understand the complex world they face.
Young people can do much better than that. From 2012 to 2015, there was no improvement in how much U.S. teens know about personal finance across all levels of proficiency.