The United States, although by many measures the world’s wealthiest country, ranks only 14th in terms of financial literacy, a survey cited in the Wall Street Journal reports.
This new financial literacy ranking comes from a survey of 150,000 adults from 148 different countries. The survey/quiz consisted of questions focused on four basic personal finance topics: inflation, interest, compounding and financial diversification.
Only 57% of Americans managed a passing grade, compared with over 70% in Norway, Denmark and Sweden and over 60% in Israel, Canada, the U.K., the Netherlands, Germany, Australia, Finland and New Zealand.
The questions in the survey were crafted to be universally applicable and have universally accepted answers, according to Annamaria Lusardi, the director of George Washington University’s financial literacy center, and a CEE board member. “One of the things that worries me is even some countries with developed economies have very low levels of financial literacy,” Ms. Lusardi said.