How much do 15-year-olds know about finances?
Most teenagers learn about finances in school, but there are still significant differences in their knowledge levels.
In a PISA survey, 15-year-olds from various countries were tested on financial literacy. They were given tasks similar to math problems.
Some of the tasks were quite challenging, such as evaluating the risk of a purchase.
In Norway, about 8,500 15-year-olds participated.
Some of the other countries that participated were the USA, Denmark, and Italy.
The survey revealed that Norwegian 15-year-olds performed worse on these tests than the average of the participating countries.
Norway stands out because of the significant gap between those who know a lot and those who know very little.
On the curriculum
In Norway, all adolescents are supposed to learn about economics and finances in mathematics and social studies.
However, the PISA survey showed that not all students receive the same level of instruction.
“There’s some variation in how much focus economics gets in education,” says Ellen Katrine Nyhus.
She researches economics at the University of Agder.
“Education in economics is about preparing students for adulthood and the responsibilities they quickly assume as 18-year-old when they gain access to more banking services and perhaps move out on their own. It’s important that the necessary knowledge is taught in primary school so that everyone receives the education they need,” she says.
Below average knowledge
Despite this, Norway still scores well regarding socioeconomic differences, with fewer disparities compared to other countries, according to the survey.
Many young people report feeling confident in managing their everyday finances. They are aware of how much money they have in their accounts and can track this digitally.
However, it becomes more challenging when young people are asked about financial situations they have not yet encountered, such as filling out a form at the bank.
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Learn from parents
Researchers found that over 70 per cent of the adolescents surveyed frequently discuss finances with their parents.
How parents manage their money can significantly influence how young people handle theirs.
“Parents provide different types of financial knowledge. Some focus more on budgeting and accounting, while others might emphasise ways to earn money and how to invest in stocks and funds,” says Nyhus.
Parents’ attitudes towards spending, loans, and saving also affect their children’s attitudes.
“Whether you tend to live in the moment and spend what you have or make long-term plans to safeguard against unforeseen expenses or difficult times,” she says.
Girls perform better
One notable finding in the survey is that girls perform slightly better than boys.
“It’s surprising that girls do better than boys on the PISA test, but we can hope it indicates a growing interest in economics and finance among girls,” says Nyhus.
She explains that it is usually the opposite among adults. In financial literacy tests, there is a significant difference between the knowledge of women and men, with men typically performing better.
“This gender difference in Norway is a bit surprising since Norway ranks highly in gender equality. Norwegian women have high levels of education and workforce participation, so it’s hard to explain why they score much lower than men on financial literacy questions,” says Nyhus.
Youth with more responsibility
The survey also found that most Norwegian youths can decide how to spend their money.
Nyhus believes that giving adolescents responsibility for their own finances is a smart way to prepare them for adulthood.
“This can be done by gradually giving them more money along with more responsibility. As they grow older, they can decide how much of the money should be spent on clothes, leisure activities, and other expenses. They then have to face the consequences of their choices. If they send all their money on expensive clothes, for example, they’ll have to cut back on other things,” she says.
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Translated by Alette Bjordal Gjellesvik
Read the Norwegian version of this article on ung.forskning.no
Reference:
Jensen et al. PISA 2022 – Økonomiforståelse og holdninger til personlig økonomi blant norske 15-åringer (PISA 2022 – Financial literacy and attitudes towards personal finance among Norwegian 15-year-olds), University of Oslo, 2024.
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