Americans lacking in financial literacy

Americans lacking in financial literacy

Friday, November 20, 2015

While the United States is considered by many to be the wealthiest nation on the planet, based on a global survey of financial literacy around the world, Americans are lacking in financial knowledge, coming in 14th after countries like the Czech Republic, according to the Wall Street Journal. The survey was conducted by a partnership between Standard & Poor's Rating Service, Gallup World Poll, the World Bank, and the Global Financial Literacy Excellence Center at George Washington University.

The article also includes the five-question literacy test, which covers four basic personal finance topics: inflation, interest, compounding, and financial diversification. Take the test yourself and go to the Financial Self-Sufficiency theme of Gulf Coast Community Indicators to see how our region is doing. Researchers hope the new data set will help them answer whether financial literacy makes a difference in economic outcomes, which is the general understanding, but has been difficult for researchers to prove.