Financial literacy and culture:
Financial literacy and culture: What do 15-year-olds really know?
The advent of the digital age in finance and economics has made it easier to access financial products and the consumer market. To prepare young people to register as active citizens in society, the school is required to develop the skills and knowledge of students in financial literacy so that they can effectively manage their financial well-being (budget management , investment in higher education, retirement management, etc.).
Money and 15 year olds
The new issue of PISA explores in depth the level of skills and knowledge of 15-year-olds in personal finance around the world to establish a global portrait of financial culture. The four areas of financial literacy understanding studied are money and transactions, financial planning and management, risk and reward, and the financial landscape.
[Thematic file: Studies and work, a risky combination]
Global results
PISA shows that a total of 22% of OECD students ranked in the lowest level where there is an overrepresentation of students from disadvantaged backgrounds. The United States, Brazil and Poland are among the countries with the highest number of students classified as not having the level required to participate in society.
[The place of education in the fight against poverty and social exclusion]
In contrast, China, Russia and Canada are the countries where students perform best.
PISA also points out that almost 62% of the variation in financial literacy results directly depends on skills related to mathematics education or reading comprehension, not financial knowledge.
[To see tables and highlights of global financial literacy results]
Canadian Results
A document on Canadian results has also been published, indicating that 87% of Canadian students have an adequate level to participate in society, compared to an average of 78% for other OECD countries. Despite this, the gap between the best and the worst results is wide, a sign of a great disparity between the skills of the students.
The highlights of this study show that the majority of 15-year-olds consciously save and save their money. In addition, students who discuss finances with their parents and those with a bank account are also those who obtain the best results while the gender of the students does not influence these same results.
[See Canadian results on financial literacy for 15 year olds]
How to promote financial literacy and culture?
To reduce the risk that the high dispersion of secondary school results could lead to significant socio-economic disparities once they reach adulthood, PISA recommends actively supporting underperforming students to enable them to progress financially in society.
Measures for learning financial culture at school:
Integrate notions of financial culture in compulsory subjects (mathematics, contemporary world, etc.);
Put students in contact with fictitious financial experiences so that they become familiar with them;
Use learning-by-doing, videos, competitions or serious games to develop knowledge and skills related to financial literacy.
Measures to promote an adequate financial culture outside of school:
Democratize the teaching of financial culture to avoid the disparities created by the lack of parental involvement;
Use more nuanced messages than those offered by financial institutions;
Develop policies and initiatives to encourage parental involvement;
How to get rich7
The advent of the digital age in finance and economics has made it easier to access financial products and the consumer market. To prepare young people to register as active citizens in society, the school is required to develop the skills and knowledge of students in financial literacy so that they can effectively manage their financial well-being (budget management , investment in higher education, retirement management, etc.).
Money and 15 year olds
The new issue of PISA explores in depth the level of skills and knowledge of 15-year-olds in personal finance around the world to establish a global portrait of financial culture. The four areas of financial literacy understanding studied are money and transactions, financial planning and management, risk and reward, and the financial landscape.
[Thematic file: Studies and work, a risky combination]
Global results
PISA shows that a total of 22% of OECD students ranked in the lowest level where there is an overrepresentation of students from disadvantaged backgrounds. The United States, Brazil and Poland are among the countries with the highest number of students classified as not having the level required to participate in society.
[The place of education in the fight against poverty and social exclusion]
In contrast, China, Russia and Canada are the countries where students perform best.
PISA also points out that almost 62% of the variation in financial literacy results directly depends on skills related to mathematics education or reading comprehension, not financial knowledge.
[To see tables and highlights of global financial literacy results]
Canadian Results
A document on Canadian results has also been published, indicating that 87% of Canadian students have an adequate level to participate in society, compared to an average of 78% for other OECD countries. Despite this, the gap between the best and the worst results is wide, a sign of a great disparity between the skills of the students.
The highlights of this study show that the majority of 15-year-olds consciously save and save their money. In addition, students who discuss finances with their parents and those with a bank account are also those who obtain the best results while the gender of the students does not influence these same results.
[See Canadian results on financial literacy for 15 year olds]
How to promote financial literacy and culture?
To reduce the risk that the high dispersion of secondary school results could lead to significant socio-economic disparities once they reach adulthood, PISA recommends actively supporting underperforming students to enable them to progress financially in society.
Measures for learning financial culture at school:
Integrate notions of financial culture in compulsory subjects (mathematics, contemporary world, etc.);
Put students in contact with fictitious financial experiences so that they become familiar with them;
Use learning-by-doing, videos, competitions or serious games to develop knowledge and skills related to financial literacy.
Measures to promote an adequate financial culture outside of school:
Democratize the teaching of financial culture to avoid the disparities created by the lack of parental involvement;
Use more nuanced messages than those offered by financial institutions;
Develop policies and initiatives to encourage parental involvement;
How to get rich7
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