“The more that financial education initiatives are developed, both in and outside of school, the more important it is for governments and other stakeholders to evaluate and prioritize such initiatives and to scale and spread good practice.” — Andreas Schleicher
To thrive in today’s innovation-driven economy, students need a different mix of skills than in the past. Experts believe that educating kids to be financially literate and manage their own finances is one of them. It is also the best way to ensure young people can manage money and even more important, are able to spend it wisely.
So how financially literate is your 15 year-old? The OECD has just released its latest study of the financial literacy competencies of 15 year-old students in 15 countries. Which countries do well and what can we learn from them?
The Global Search for Education caught up with Andreas Schleicher, Director of the OECD Directorate for Education and Skills, to discuss the latest findings.
Andreas, welcome back. In this study, what were the key questions asked to determine financial literacy?
We tested whether 15-year-olds were able to define their priorities and plan what to spend money on; whether they are aware that some purchases have ongoing costs or that they can become the victims of fraud; and to know what risk is and what insurance is meant for. Some of the questions also required knowledge of basic financial instruments, such as a bank account.