15-Year-Olds Are Expected to be Financially Literate -- Is Yours?

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In CMRubinWorld’s new interview with Andreas Schleicher, Director of the OECD Directorate for Education and Skills, Schleicher highlights the expectation for the younger generation to be financially literate—an expectation that previously did not exist.

A recent study by the OECD shows financial literacy competencies of 15-year-olds in 15 different countries around the world. In a new interview with CMRubinWorld, Andreas Schleicher explains how the study was performed and analyzes the results. In the study, the OECD “tested whether 15-year-olds were able to define their priorities and plan what to spend money on; whether they are aware that some purchases have ongoing costs or that they can become the victims of fraud; and to know what risk is and what insurance is meant for. Some of the questions also required knowledge of basic financial instruments, such as a bank account.”

The 21st century brings new opportunities and complications to financial problems as they are exposed to a wider audience. “The spread of digital financial services opens up new opportunities for people once excluded from the financial system; but the digitized system also exposes consumers to new security threats and risks of fraud that are compounded when low financial literacy is combined with poor digital skills and ignorance of cyber security. There are also greater financial risks.”

Schleicher gives suggestions as to how to enhance financial literacy in youth. He says, “The best predictor is strong performance in key subject disciplines like math and reading, so doing a good job with foundation skills is an important starting point. But it requires more than that. The PISA financial literacy assessment reveals that 38% of the variation in financial literacy is not explained by mathematics and reading skills.” Additionally, parents who discuss money matters with their children see higher financial literacy skills in their kids.

Andreas Schleicher is the Director of the Organisation for Economic Co-operation and Development (OECD) Directorate for Education and Skills, which originated in 1948 and is headquartered in Paris, France.

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CMRubinWorld launched in 2010 to explore what kind of education would prepare students to succeed in a rapidly changing globalized world. Its award-winning series, The Global Search for Education, is a celebrated trailblazer in the renaissance of the 21st century, and occupies a special place in the pulse of key issues facing every nation and the collective future of all children. It connects today’s top thought leaders with a diverse global audience of parents, students and educators. Its highly readable platform allows for discourse concerning our highest ideals and the sustainable solutions we must engineer to achieve them. C. M. Rubin has produced over 550 interviews and articles discussing an expansive array of topics under a singular vision: when it comes to the world of children, there is always more work to be done.

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David Wine

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