WASHINGTON, May 24, 2017 /PRNewswire/ -- Results from
the latest round of the Program for International Student
Assessment (PISA) released today
by the National Center for Education Statistics (NCES) show that 22
percent of U.S. 15-year-old students lack basic financial literacy
skills.
The assessment tests 15-year-old students on their knowledge and
understanding of fundamental elements of the financial
world—including financial concepts, products, and risks—and their
ability to apply what they know to real-life situations involving
financial issues and decisions. PISA was developed and organized by the
Organization for Economic Cooperation and Development (OECD), an
intergovernmental organization made up of 35 mostly industrialized
member countries, and is conducted in the
United States by NCES.
The average score for U.S. 15-year-olds was unchanged since
2012, the first time the PISA
financial literacy assessment was conducted.
"These are fundamental life skills that are absolutely essential
for all Americans, but the study shows that many of our
students—roughly one-fifth overall—don't have the skills they need
to make prudent decisions about their personal finances," said
Peggy G. Carr, acting commissioner
of NCES. "We also see sizeable gaps between students in
the United States. Only 3 percent
of students attending lower-income schools, for example, were high
performers in financial literacy, compared to 45 percent of
students attending higher-income schools. Conversely, 38 percent of
students in lower-income schools were low performers, compared to
16 percent in higher-income schools."
The combined average score for four provinces in mainland
China—Beijing, Shanghai,
Jiangsu, and Guangdong (B-S-J-G)—was the highest average
score among the 15 participating education systems. Students in the
Flemish Community of Belgium, the
seven Canadian provinces (combined score), the Russian Federation, the Netherlands, and Australia also scored higher, on average, than
U.S. students.
"PISA shows how our
15-year-olds are performing compared to their peers in a very
diverse group of participating systems," Carr said. "And
PISA is especially valuable
because it is the only nationally representative study in
the United States that measures
the applied financial literacy skills of young people; these are
the skills students need to be prepared for the financial
challenges they will encounter as young adults."
Students in Spain, Lithuania, the Slovak Republic, Chile, Peru,
and Brazil had lower average
scores than students in the U.S. The average U.S. score was
comparable to average scores for students in Poland and Italy.
Eight systems (including the U.S.) participated in the
PISA financial literacy assessment
in both 2012 and 2015, allowing for comparisons of their students'
financial literacy across two time points. Between 2012 and 2015,
there was no measurable change in the average U.S. financial
literacy score. Among the seven other systems that participated in
2012 and 2015, the Russian
Federation and Italy showed
measurable gains in average scores, while Poland, the Slovak Republic, Australia, and Spain showed measurable declines.
Two U.S. states—Massachusetts and North Carolina—participated in
the 2015 financial literacy assessment as international
benchmarking systems and received separate scores from the United States.
Massachusetts' average score
was higher than the U.S. average score; North Carolina's average score was not
measurably different from the U.S. average score. Results for
Massachusetts and North Carolina are for public school students
only.
Key findings:
AVERAGE SCORES FOR PARTICIPATING SYSTEMS
- Average scores in financial literacy ranged from 566 in B-S-J-G
(China) to 393 in Brazil. The U.S. average score was 487.
- The 2015 U.S. average was lower than the average in six
education systems (B-S-J-G (China), Belgium (Flemish Community), Canada, the Russian
Federation, Netherlands,
and Australia), higher than the
average in six education systems (Spain, Lithuania, Slovak Republic, Chile, Peru,
and Brazil), and not measurably
different from the average in two education systems (Poland and Italy). It was not measurably different than
the U.S. average score from the previous financial literacy
assessment (2012).
TOP PERFORMERS
Students reaching level 5 on the PISA assessment of financial literacy
demonstrate that they can apply their understanding of a wide range
of financial terms and concepts to contexts that may only become
relevant to their lives in the long term.
- In 2015, the percentages of top performing 15-year-old students
in financial literacy ranged from 33 percent in B-S-J-G
(China) to 1 percent in
Peru. In the U.S., 10 percent of
15-year-olds were top performers.
- The U.S. percentage of top performers in 2015 was lower than
the OECD average and five education systems (B-S-J-G (China), Belgium (Flemish Community), Canada, Netherlands, and Australia) and higher than eight (Poland, Italy, Slovak Republic, Spain, Lithuania, Chile, Brazil, and Peru). The U.S. percentage of top performers
did not differ significantly from that of the Russian Federation.
LOW PERFORMERS
- Students scoring below level 2 on the PISA assessment of financial literacy lack
basic financial literacy skills. They do not demonstrate knowledge
of common products, terms, and concepts necessary to make financial
decisions.
- The percentage of low performing 15-year-old students (those
scoring below proficiency level 2) ranged from 9 percent in B-S-J-G
(China) to 53 percent in
Brazil in 2015. In the United States, 22 percent of 15-year-olds
were low performers, which was higher than in the Russian Federation, Canada, Belgium (Flemish Community), and B-S-J-G
(China), and lower than in
Brazil, Peru, Chile,
the Slovak Republic, and Lithuania. The U.S. percentage of low
performers did not differ from Australia, Italy, Netherlands, Poland, and Spain.
- The overall U.S. percentage of low performers was higher than
in Massachusetts (12 percent), and
not measurably different than in North
Carolina (19 percent).
U.S. RESULTS BY SOCIOECONOMIC STATUS
- On average, students in the U.S. attending higher-income
schools (schools where between 0 and 24.9 percent of students were
eligible for the National School Lunch Program) scored 110 points
higher than students attending lower-income schools (schools where
75 percent or more of students were eligible for the National
School Lunch Program).
-
- In the U.S., the average score for students attending
higher-income schools was 543. The average score for students
attending lower-income schools was 433.
- A lower percentage of U.S. students attending lower-income
schools were top performers compared to students attending
higher-income schools.
-
- Three percent of students attending lower-income schools were
top performers. Forty-five percent of students attending
higher-income schools were top performers.
- A higher percentage of U.S. students attending lower-income
schools were low performers compared to students attending
higher-income schools.
-
- Thirty-eight percent of students attending lower-income schools
were low performers. Sixteen percent of students attending
higher-income schools were low performers.
U.S. RESULTS BY RACE/ETHNICITY
- Average scores for U.S. White students (524) and Asian students
(525) were higher than the U.S. average. Average scores for U.S.
Black students (422) and Hispanic students (460) were lower than
the U.S. average.
- In the U.S., 12 percent of White students, 14 percent of Asian
students, 18 percent of students of two or more races, 28 percent
of Hispanic students, and 41 percent of Black students scored were
low performers.
- In the U.S., 20 percent of Asian students, 15 percent of White
students, 10 percent of students of two or more races, 5 percent of
Hispanic students, and 1 percent of Black students were top
performers.
The full report is available at
http://nces.ed.gov/surveys/pisa/
The National Center for Education Statistics (NCES), a
principal agency of the U.S. Federal Statistical System, is the
statistical center of the U.S. Department of Education and the
primary federal entity for collecting and analyzing data related to
education in the U.S. and other nations. A part of the Institute of
Education Sciences, NCES fulfills a congressional mandate to
collect, collate, analyze, and report complete statistics on the
condition of American education; conduct and publish reports; and
review and report on education activities internationally.
Contact: James Elias,
(202) 706-7416, jelias@hagersharp.com
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SOURCE National Center for Education Statistics