Australian teens show financial nous

By  |  0 Comments

A report released by the Australian Council for Educational Research (ACER) reveals that Australian young people rate top five in the world for financial literacy.

A total of 29,000 students from 18 countries participated in the assessment, including approximately 3300 Australian students from 768 schools.

The financial literacy assessment measured 15-year-olds’ knowledge of personal finances and their ability to apply it to financial problems.

First on the list was China, specifically Shanghai, while Colombia was relegated to last spot. Against an average OECD mark of 500, Australia scored 526, a handful of points ahead of New Zealand. Ahead of Australia was also Belgium and Estonia.

Almost 90 per cent of Australian students met or exceeded the level of performance that would enable them to actively participate in real life financial situations.

ACER’s Director of Educational Monitoring and Research, Dr Sue Thomson welcomed the results.

“There is a significant benefit for young people in being financially literate. From the age of 15, they face important financial decisions, and it is important that they have higher-order knowledge and skills they need for financial transactions like managing bank accounts, understanding compound interest and setting up a loan,” she said.

Australia’s performance was significantly higher than the Czech Republic, Poland, Latvia, the United States, the Russian Federation, France, Slovenia, Spain, Croatia, Israel, Slovak Republic, Italy and Colombia. Australian students in metropolitan schools achieved an average score of 535 points, significantly higher by 32 score points than students in regional schools.

In general, the higher the level of a student’s socioeconomic background, the better the student’s performance in financial literacy.

Find us on FacebookFind us on FacebookFind us on FacebookFind us on Facebook