Americans Short on Financial Know How

[bayerische]

5/5...

Average is scary!

[Angrypuppy]

5/5

[77T]

Sure it's an easy test - but...
Methinks the test isn't built for us...that is, the average TRF'er.

From the story

It isn’t surprising that the worst downturn in the U.S. since the Great Depression hasn’t produced better personal financial habits, said Annamaria Lusardi, who was part of the team that designed the questions for the Finra test and survey.

Although the tattered economy often was front-page news throughout the recession, she said, simply reading about markets and the economy is no substitute for financial-literacy education at school or work.

“It’s not that people learn because we’re in a financial crisis,” said Ms. Lusardi, a professor at George Washington University and director of the school’s Global Center for Financial Literacy. “We can’t expect people to learn about inflation by osmosis.”

She emphasized that young people in particular need education not only on asset and wealth-building, but on managing debt. The study found that debt remains an acute problem for those with lower incomes and less education — as well as the young.

“Financial literacy is this new skill and we need to live in this new world of individual responsibility,” Ms. Lusardi said. “Very few countries have taken the initiative to improve financial literacy and capability… If you don’t do that, this is not something that grows with you or that people acquire by their daily lives.”

You know what's chilling? That the trend is more of these people will outnumber the financially literate very soon. Among the 18-34 year olds, 43% have used often high-cost methods of borrowing, such as pawn shops or rent-to-own establishments. And 49% couldn't come up with $2,000 for an unexpected expense such as car repairs.

[mangoseed]

4/5, all were incredibly easy other than the bond question. Well I never wanted to invest in bonds anyway haha

[SearChart]

Originally Posted by mangoseed

4/5, all were incredibly easy other than the bond question. Well I never wanted to invest in bonds anyway haha

Interesting thread bump.

[77T]

Originally Posted by SearChart

Interesting thread bump.

Ummm, yeah - a 6 year dead thread...


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[T4ME]

Originally Posted by 77T

Ummm, yeah - a 6 year dead thread...


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Did not even notice the original date... maybe we should bring back old threads

Content still relevant

[Beo3]

5 for 5 and I barely made it out of High School.....

[mangoseed]

Originally Posted by Beo3

5 for 5 and I barely made it out of High School.....

Just shows that high school isn't the best indicator of overall acumen.

[glenn_herwig]

6 out of 6 for me. Looks like they added an extra question.

[CamSLC]

I have a finance background, but these are pretty basic. Funny thread bump.

Most people have a bond portfolio in some form or another. "fixed income" might ring a bell.

[gettocard]

One . But it’s 11:37 pm and i’m completely stoned.

[mangoseed]

Originally Posted by gettocard

One . But it’s 11:37 pm and i’m completely stoned.

Well don't make any financial decisions at this hour!

[GB-man]

Unfortunately basic finance and accounting principles are neglected in public schools. It’s far more important than many aspects of mathematics that I spent years learning but had no use for.

Of course for many here that quiz is very easy but it doesn’t surprise me that average Joe would be lucky to get 2 right. Hopefully I don’t need to tell you how many I got right.

[Rock]

I don't think this "quiz" says anything about Americans. You could run this in any Western country and the average score would be about the same.
In Australia, the proportion of people who took out loans they couldn't afford just because some irresponsible/corrupt person was willing to approve it is probably about the same as the US.

[tyler1980]

Originally Posted by Rock

I don't think this "quiz" says anything about Americans. You could run this in any Western country and the average score would be about the same.
In Australia, the proportion of people who took out loans they couldn't afford just because some irresponsible/corrupt person was willing to approve it is probably about the same as the US.

i agree.

However i think its not like people are stupid its they are avoiding the issue. With savings rates and the amount of savings most people have for an emergency i think just keeping your head above water is job #1. Kind of like when people are afraid to go to the mailbox because there will be bills in it.

Avoidance is easier. And its also an abstract concept to know how to deal with money you dont have.

The government shutdown highlighted this in the fact that people with no paycheck couldn't cover basic bills until it got sorted. You wouldn't see much difference if the same thing happened to teachers, firefighters, manufacturing workers, mechanics, etc. So thats a whole lot of people.

Investing/financial literacy is way down the list if the majority are firmly paycheck to paycheck.

[codecow]

I got the subscribe/sign-in sheet on there (can't take test without getting spammed or paying them) so I think I win.

[JMtimes5]

Hey I scored 6/6. Did I take the right quiz?
On the plus side, I’m one point smarter than a chimp 😊

[Star Ferry]

Perfect. Thanks, Wharton

[T4ME]

5/5??? I had six questions

You got 5 correct answers out of 6

[77T]

When there’s relevant value...perhaps.

Don’t see it here though.


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[bayerische]

Um...

[pickettt]

It's by design. How can you perpetrate the new slavery if you're educating the slaves?

[GB-man]

Originally Posted by pickettt

It's by design. How can you perpetrate the new slavery if you're educating the slaves?

Slow down Kanye

[pickettt]

Originally Posted by GB-man

Slow down Kanye

My statement has zero to with race, if that was the assumption.

[GB-man]

Originally Posted by pickettt

My statement has zero to with race, if that was the assumption.

I know lol I was joking

[Tri-Tip]

6 out of 6 (they added a bonus question)