2 years ago
How good are you at doing sums? Let’s see if you can solve the following: 1 liter of cola is $3.15, how much do you have to pay for a ⅓ of a liter?
Simple as it is, the majority of adults across the globe find themselves unable to solve this task correctly, even if they’re allowed to use a calculator. The correct answer is $1.05 if you’re still wondering.
The research data obtained from the Organisation for Economic Cooperation and Development (OECD) Programme for International Assessment of Adult Competencies (PIAAC) looks shocking. Adults from 31 countries were offered to answer 4 simple financial questions.
The questionnaire included the first question as well as the following:
While paying a visit to the grocery store, you buy 4 types of tea packs: chamomile tea ($4.60), green tea ($4.15), black tea ($3.35) and lemon tea ($1.80). Suppose, you paid for all 4 packs with a $20 bill, how much change would you get?
The results by countries turned out quite surprising:
What Is The Meaning of the Research?
The research has uncovered significant disparities in financial literacy skills between different demographic groups.
Unfortunate as it is, adults are ill-prepared to make crucial financial decisions. This situation poses a question of how important financial literacy actually is. Teaching the basics of financial literacy at school could help young people make complex financial decisions in the future.
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