Conservation or extravagance: Where are young families most financially literate?

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    The OECD says the right way to lead cash is more influential than ever, although one in five students surveyed lacked the obvious talent.
</p><div><div class="c-ad c-ad-halfpage u-show-for-small-only"><div class="c-ad__placeholder"><img class="c-ad__placeholder__logo" src="https://static.euronews.com/website/images/logos/logo-euronews-180x22-grey-6.svg" width="180" height="22" alt="" loading="lazy"/><span>Advertisement</span></div></div><p>The OECD said in releasing its untouched PISA e-newsletter that governments need to do more to promote financial literacy among students.

The study, a wealth-focused section of a comprehensive document on education, follows tests conducted by nearly 100,000 15-year-olds in 2022. Cooperative Scholars were placed in 14 OECD and six partner economies.

With 18% of students in OECD countries operating at or below the most pronounced level of financial literacy, the group’s Secretary-General, Mathias Cormann, called for “the need to better equip young people with the knowledge and skills needed to build secure and informed financial literacy”. Emphasized on. Decision.”

Working at level one means students can make simple decisions about daily spending and recognize the purpose of daily financial documents.

Reaching this rating also means that the individual can understand the balance between wants and needs in financial terms.

Belgium’s Flemish people top the checklist

The OECD economies participating in the Financial Literacy Review were: Austria, the Flemish Region of Belgium, Costa Rica, Czechia, Denmark, Hungary, Italy, the Netherlands, Norway, Poland, Portugal, Spain, the United States, and eight Canadian provinces.

Also participating were 6 associate countries: Brazil, Bulgaria, Malaysia, Peru, Saudi Arabia and the United Arab Emirates.

Of the farmlands studied, 7 performed above the OECD fair level in terms of financial literacy.

They are Austria, the Flemish people of Belgium, the Canadian provinces, Czechia, Denmark, the Netherlands and Poland.

On average, 11% of students in OECD economies have been government executors, meaning they can analyze advanced financial products and solve non-routine financial problems.

More than 15% of students in the Flemish population of Belgium and the Netherlands are executive performers when it comes to money matters, while less than 1% of students in Malaysia and Saudi Arabia are.

Meanwhile, more than 45% of students in Brazil, Malaysia and Saudi Arabia performed at or below the most typical level.

This compares to 11% of low-performing scholars in Denmark.

Among the countries that have participated in all PISA financial literacy exams, Italy improved its performance in 2022 compared to 2012, and Spain and the United States improved their performance in 2022 compared to 2015. Is.

Poland made progress in its efficiency in 2022 compared to 2015, although its performance remained worse than in 2018.

The real determinants of monetary literacy are gender disagreements

PISA data shows that there is no good relationship between gender and financial literacy, with the proficiency of girls and boys varying across economies.

Boys are over-represented at both ends of the spectrum, dominating teams that excel but also dominating teams that perform poorly.

To look at a country-specific snapshot, boys scored higher than women in Austria, Costa Rica, Denmark, Hungary, Italy and Portugal.

In Bulgaria, Malaysia, Norway and the United Arab Emirates, women performed better than boys.

With regard to positive abilities, more boys than women assured working on a gross sales commitment (19% more) and planning their spending to improve their financial condition (8% more).

Additional support needed for disadvantaged scholars

Unlike gender, a teen’s financial background has a good correlation with their skills in stewarding cash.

In every companion PISA section that collected information on socio-economic status, advantaged scholars performed much better than disadvantaged scholars.

In the Flemish populations of Belgium, Bulgaria, Czechia, Hungary and Peru the gap between advantaged and disadvantaged students was more than 100 points (with each score splitting factor of 75 points).

In the Canadian provinces, Denmark, Italy, Portugal, Saudi Arabia and Spain the disparity did not reach 75 points.

“If children and young people only learn about money matters through their parents and families, inequalities in levels of financial literacy, wealth and financial well-being could be reinforced across generations,” the OECD said.

“Providing financial education to youth in schools and through other programs can help reduce disparities in financial literacy due to differences in students’ current socioeconomic status.”

The advantaged scholars said they felt more confident in managing cash according to their financial situation than the more disadvantaged young families.

patronage and expenditure

Even though the OECD stated that financial savings should be promoted, young families tend to engage in certain behaviors when managing their cash.

In the year before the PISA test, an average of 93% of students in participating OECD economies reported that they had deposited money one or more times.

Meanwhile, 82% said that after purchasing something with money they had checked to make sure they got the best deal, with 74% of scholars comparing prices in multiple stores before ordering a purchase.

It said, on average, 74% of students across partner economies said they bought something that cost more than they expected to spend in the year before the exam.

Over 80% of students had studied in Norway, Poland, Bulgaria, Czechia, Denmark and the Netherlands.

Why do we want monetary literacy?

The OECD said the right way to manage cash is not only important for managing daily purchases, but can also be an effective way for young families to identify fraud and monetary scams.

As they move into maturity, their desire for these skills may become more pressing as services and products become increasingly digital. For example, Buy Now, Pay Now, Upcoming Plans, Crypto-assets, and “Finalfluencer”, all have recently landed on a person’s feet.

Furthermore, professionals emphasize that awareness is needed so that young families can plan effectively for their future.

“Increasing life expectancy, reduced welfare security and greater uncertainty in retirement incomes due to changing pension systems mean that future generations will likely need to take greater personal financial responsibilities than previous generations,” the OECD said.

Gang said that higher executive support, particularly concentrated against the least competent people, would assist in filling this information hole.