The National Financial Educators Council (NFEC) recently unveiled the results of their National Financial Literacy Test, polling 11,960 participants representing all 50 states on their financial know-how. The 30-question quiz was designed to measure both teens and young adults' ability to earn, save, and grow their money. The average test score was 60.35% for 15 - 18 year olds, and 63.64% for all ages.
45% of test participants failed, scoring 60% on the test or lower. The test questions were designed to address the subjects highlighted in the Financial Literacy Framework & Standards, as well as three other key financial areas: motivation to learn, topic knowledge, and recognition of steps to take toward securing one's future.
As an example, only 28% of test-takers answered the following multiple choice question correctly: "If I invest $100 per month starting at age 21, and that money earns a 7% annual return, how much will I have after 70 years?" The choices were:
- A) $138,957
- B) Between $150,000 and $225,000
- C) More than 1.5 million dollars
- D) None of the above
The NFEC also released data on two more tests – the Advanced Financial Education Test (average score 52.53% with a 55% fail rate) and the Financial Foundations Test (average score of 45.28% and a 77% fail rate.) The results of these tests can be found on NFEC's site here.
The National Financial Educators Council is a social enterprise organization committed to improving people's financial capability worldwide. The NFEC develops tools, resources, and training to help organizations and individuals share the message of financial literacy at the community level.
For the full results on the Literacy Test, head to NFEC's site here.