By Justin Boyle
In what might seem like a dispatch from the Tell-Me-Something-I-Don't-Know Department, the National Center for Education Statistics (NCES) released data last month that indicate American teenagers have a below-average grasp of personal finance for their age.
The NCES study, known as the Program for International Student Assessment, or PISA, asked 28 million 15-year-olds various questions that tested their financial literacy and problem-solving skills. The results revealed that many kids from the U.S. don't know much about income tax or basic compound interest, let alone financial planning or investment principles.
Is this a crisis? Here's a look at the numbers.
The stats don't lie
First, the bad news: Just 9 percent of U.S. students tested at level 5 or above for financial literacy. That's the level that includes long-term investment planning, big-picture financial concepts and unstated implications in financial documents, which, frankly, many adults don't even understand.
What's more troubling is that 18 percent of U.S. students surveyed tested below level 2 on the study's rating scale.Read the full article »