Most people ignore most financial literacy because most financial literacy ignores most people. Something like that is clear from this financial knowledge test.
Do it if you want. But don’t fret if you don’t get full marks. Nine out of ten US citizens who did it got at least one wrong. It’s very focused on financial products and long-term financial planning. It’s not where most people in the UK are.
The test is taken from the Financial Literacy Center in the States. It’s a fine and well-organised site with plenty of sound, useful advice and ideas. It also demonstrates how restricted the view of what financial literacy is. Knowing what happens to bond prices when interest rates rise is not part of the knowledge, skills and attitude that would improve the money management of young people in the UK. Or any age group.
One day I’ll devise a test that touches on some real questions about money, to give people confidence about what they know and what they could do with finding out.
