Schools are increasingly teaching financial literacy courses to the curriculum, but fewer than 20% of teachers and teachers-in-training said they felt “very competent” to teach personal finance, according to survey.
Another report, recently released by the Securities and Exchange Commission, showed the problem goes beyond schools, concluding “U.S. retail investors lack basic financial literacy” and “have a weak grasp of elementary financial concepts.” The Wall Street Journal
When it comes to understanding basic concepts about investing, Americans come up woefully short. Consider that while 67% of respondents to a 2009 survey rated their own overall financial knowledge as “high,” only 53% answered this question correctly: “True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.”
Only 6% got the answer wrong, choosing “True.” But fully 40% said they didn’t know the answer, and 1% declined to answer. The survey of about 28,000 U.S. respondents was by the Investor Education Foundation of the Financial Industry Regulatory Authority. Finra, as the authority is commonly referred to, is a private, industry-funded agency that regulates financial-services firms.
Continue Reading: The Wall Street Journal