A recent study that examined young students from several participating countries have been recently published and it exposed some shocking truth about the state of financial literacy today.
One concerning data revealed that 25% of the participants did not even have the comprehension nor the right skills to make the simplest financial decisions.
In definition, financial literacy is an individual’s ability to utilize the skills and knowledge that they have learned to make educated and informed economic decisions related to investing, savings, and even the most basic financial concepts.
While a majority of the participants did not pass the criteria, these countries were able to deliver impressive results and topped the ranks for having the most literate teenagers in the world.
According to the report published by the Program for International Student Assessment, China is the most financially literate country in the world.
While the survey focused on a population of 48,000 15-year old students and examined their skills in reading, math and science, the assessment also measured the subjects’ ability to make sound financial decisions.
Canada ranked third among the 30 countries that participated in the same study. The report was released by the Organization for Economic Co-operation Developed (OECD) and the International Network on Financial Education (INFE).
Belgium also joined the league of the most financially literate countries in the world and won its own title as having the highest financial literacy in all of Europe.
The Flemish community of Belgium bested other participating European countries like Italy, the Netherlands, Poland and Spain.