Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
I feel to succeed at real estate in the long term it requires at least a fundamental understanding of finances. The WSJ recently ran a piece about the lack of financial literacy in this country, Three question financial literacy test
This test designed by professors at MIT and Wharton ask some very basic financial literacy questions (no they aren't trick questions) and only 44% of college graduates got all three right.
I'm not asking anyone to share if you got the questions right, but if you didn't get all three right, in fact if you didn't think they were trick questions, you almost certainly need to hone your financial literacy skills. Again, I'm not trying to shame anyone, I'm just trying to make people realize that they may be among the majority in America who don't have basic financial literacy skills and the need to do something about it.
This can't be right.... I am a high school dropout and these questions were beyond easy.
That's precisely why I wrote this "in fact if you didn't think they were trick questions, you almost certainly need to hone your financial literacy skills."
Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes
11y
This should not really be a surprise.
At what point are students taught about personal finance? Not in K-12, not even in the University. I wasn't. Taught by our parents? Maybe, if they know what to even teach. This is a glaring huge gap in the middle of our education system, and those with the money in this country like it that way. Keeps the population dumb, easily malleable, vulnerable, and they don't put up a fuss when they are screwed over by our politicians elected to "represent" us in our state capitals and in DC.
Cape Coral, FL · Member since 2015 · 33 posts · 6 votes
11y
way too easy. I haven't made the most financially sound decisions as of yet however I'm working on changing that. I will never be one who lives with nothing and saves eveything however I do live a comfortable life and now will be acquiring buy and holds to help make it easier especially closer to retirement age.
Also provided in the paper is a comparison of the US to other countries (other developed nations still did not have an impressive % of all correct answers but better than the US):
And the highlighting of a gender gap:
"Another striking finding, also consistent across countries, is that men are more confident about their financial knowledge than they should be: even when they were wrong, they reported being ‘very confident’ about their answers."