The latest PISA study by the OECD shows that students worldwide have major deficits in financial education, also known as “financial literacy”. Many young people struggle to understand basic financial concepts, making them vulnerable to financial risks later in life. In particular, the 15-year-old students who took part in the study showed significant knowledge gaps in the areas of saving, investing and debt management. The OECD is calling for urgent action to close these educational gaps and better prepare students for the financial reality. Improved curricula and practical educational opportunities are essential steps to strengthen the financial literacy of the next generation.
Further facts from the study:
- The socio-economic background of students can explain 12% of the performance gap.
- The OECD emphasizes that financial education should be a central part of general education to reduce social inequality and promote economic stability.
- The report makes it clear that there is a positive correlation between students' financial literacy and their exposure to finance-related concepts in the classroom.
Source: OECD
Further information and report