Recently I ran across a financial literacy test put out by the FINRA Investor Education Foundation based on a survey of 25,000 people.
There were only 6 questions, which I found to be very basic. And as you would suspect I got them all correct; but then I have studied money. You can take the test yourself at http://www.usfinancialcapability.org/quiz.php
The national test results were awful: While 81% of Americans believe they have “above average” financial literacy, the test results showed that only 37% were able to pass this basic financial literacy test. (The sixth question was a bonus.) The national average was 3.16 out of 6 and in California, where I live, the result was even lower than the national average at 2.97 out of 6.
Here are more results:
- Almost 33% of Americans don’t know how to calculate interest payments;
- About 28% of Americans don’t understand the relationship between bond prices and falling interest rates; and
- 66% couldn’t get at least four of six financial questions right!
There is a HUGE gap between those who think they understand money and finance and those that actually do. This is what makes the Wealth On Any Income course so valuable. As I continue to remind people; this is not taught in school; parents can’t teach what they don’t know; and even Certified Financial Planners® are not taught how to create a personal budget.
If you want to really become financially literate, learn how to create and achieve financial goals, move from a place of debt to wealth, then watch the replay of the Wealth On Any Income online program.
To your prosperity,
Rennie
