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'Striking weaknesses' in adult financial skills

120 点作者 onuralp大约 7 年前

18 条评论

volgo大约 7 年前
Some of the skills tested in the study seem more like arithmetics rather than financial skills:<p>- &quot;About a quarter could not work out how much change they should receive from a shop...&quot;<p>- &quot;About one in three adults struggled to work out the price they had to pay.. per litre or per kilo&quot;<p>- &quot;About half could not read a simple financial line graph&quot;<p>- &quot;Most struggled to calculate discounts involving more complex calculations&quot;<p>I mean.. people can&#x27;t do math in their head. Who cares? In my opinion, the most important financial skills are simple things like monitoring your credit, your spending, creating a budget, pay off credit card in full, pay down high interest debt ASAP, avoid pay day loans, don&#x27;t spend money on stupid things, invest in high quality index funds, etc.<p>These skills are mostly psychological and will help your financial health WAY more than calculate price of chicken per pound in your head.
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kartan大约 7 年前
If you want capitalism to work, you need some kind of &quot;homo economicus&quot; that is able to look for their own selfinterest.<p>If what you have is companies powered by complex financial systems and artificial intelligence help while consumers are not able to get a discount right, you are going to end with all money in one side of the table with the other empty handed.<p>This is another reason to improve our education systems. We need to function in an increasing complex society and that requires an incresing education quality with more resources, better methologies and more time dedicated to build knowledge and less to build national identity. (To memorize the list of presidents is not as an useful skill as it used to be, I guess).
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bramjans大约 7 年前
Having lived for a while in Chile (where according to the article financial literacy is below average), my experience very much agrees with this. I noticed many people struggling with basic arithmetic resulting in me having to check the change at small shops since it would often be wrong. It also leads to people making crazy decisions with respect to choosing to buy in cash or on credit (in quota). I&#x27;m not talking about household appliances that people need, but I&#x27;ve seen things like a person buying a 50$ blanket in 12 installments over a year. Many people would just fill up they&#x27;re salary with monthly credit payments.<p>I&#x27;ve heard some people say this shouldn&#x27;t be an issue with most supermarket labels including the &quot;price per unit weight&#x2F;volume&quot;. I agree this should be an obligation by law, but I feel like many people are unaware of these labels. I know it sounds crazy to a tech crowd but I&#x27;m sure many people don&#x27;t compare the weight&#x2F;volume with the price but instead go for the cheaper product price.
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crdoconnor大约 7 年前
&gt;Examples of the sorts of questions asked &gt; &gt;1. If you bought four packs of tea: chamomile ($4.60), green ($4.15), black ($3.35) and lemon ($1.80) with a $20 note, how much change would you get?<p>Put yourself in the mind of somebody taking this questionnaire. Do you actually <i>care</i> if the answer is correct? Will you lose money if you get the answer wrong? Are you in a hurry to finish the questionnaire and go and do something else?<p>Now put yourself in the mind of a lobbyist who represents utilities companies, financial services companies and HMOs. Your customers have all come under fire because they have needlessly complicated pricing structures designed to confuse people. This is a <i>very</i> profitable practice so they want to continue doing it, but they&#x27;d like to draw attention away from it. Regulators sometimes come under political pressure to do something about it (among others, Elizabeth Warren has put this kind of pressure on, and they <i>hate</i> her for it).<p>If, as a lobbyist, if you get others to reframe the issue as one of &quot;lack of financial literacy&quot; it helps take the heat off your customers. However, It&#x27;s all very well saying &quot;people just need to become more financially literate!&quot; but that wouldn&#x27;t sound very convincing coming from a lobbyist representing a company that has a financial stake in everybody believing it.<p>Therefore, it&#x27;s better to be able to get your media contacts and politician friends say &quot;<i>studies say</i> people need to become more financially literate&quot;. There is, as such, a demand for studies like this.<p>And, Aditi Bhutoria, John Jerrim and Anna Vignoles happily (although possibly unknowingly) filled this demand by giving a bunch of random, disinterested people a math quiz where it didn&#x27;t matter if they got the answers wrong and calling it &quot;science&quot;.
apo大约 7 年前
Some will look and this and say, &quot;big deal, people can&#x27;t do math in their heads.&quot;<p>There may be more to it. Consider the recent &quot;riddle&quot; in which a man buys a horse, sells it, and buys it back again, then sells it. The question is, how much money did the man make or lose:<p><a href="http:&#x2F;&#x2F;www.independent.co.uk&#x2F;news&#x2F;science&#x2F;math-riddle-quiz-question-man-buys-a-horse-viral-a8221136.html" rel="nofollow">http:&#x2F;&#x2F;www.independent.co.uk&#x2F;news&#x2F;science&#x2F;math-riddle-quiz-q...</a><p>It was so simple to me that it seemed like it must be a trick question. It&#x27;s not.<p>I asked this question to people I was certain would get the right answer - and they didn&#x27;t.<p>This is a deep topic that needs to be explored much more thoroughly than it might appear on the surface. I suspect that many of the people who can&#x27;t do this kind of reasoning are running companies and countries.
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jandrewrogers大约 7 年前
These aren&#x27;t even &quot;financial&quot; skills but a lack of basic arithmetic ability. It is a failure of the education system.<p>I expect if we tested for actual financial skills the results would be even worse, as that requires some domain knowledge beyond basic arithmetic. I&#x27;m not sure this is easily fixable; most people I know have a very limited interest in understanding financial maths.
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simula67大约 7 年前
This study does not mention whether the participants where asked to do the arithmetic in their head : <a href="https:&#x2F;&#x2F;johnjerrim.files.wordpress.com&#x2F;2018&#x2F;03&#x2F;piaac_working_report_march_2018.docx" rel="nofollow">https:&#x2F;&#x2F;johnjerrim.files.wordpress.com&#x2F;2018&#x2F;03&#x2F;piaac_working...</a>
amichal大约 7 年前
At a local Starbucks the other day the person working the register insisted the quarter(25c) I gave him was nickle(5c). Later when giving me 16c in change he gave me a quarter and a penny. At McDonalds the next day I was refunded for a 4.67 order that took too long with 5.50 cents. My experience matches the article. On a more serious note: We design software for use by finance experts. After user testing we’ve had to:<p>- remove error bars from charts because folks didn’t know what they were and found the concept confusing<p>- remove histograms (users didn’t know what they represented).<p>- remove “percentile” after no one could agree if 99th perctile was higher or lower then 1st<p>- eventually change rankings from “3rd” to “3rd highest score out of NN respondents”
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poster123大约 7 年前
One argument against redistribution is that one is taking money from high-IQ, more responsible people who know how to manage money on average and giving it to low-IQ, less responsible people who don&#x27;t know how to manage money.<p>This needs to be balanced against the primary argument for redistribution, that someone earning $30K&#x2F;year can use an extra $1K more than someone earning $300K&#x2F;year wil l miss it.
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dmoy大约 7 年前
Initially I figured this isn&#x27;t testing the sort of financial skills that are really useful for adults. But, then I now guess that the skills that are important are probably more complex, so this is a pretty good proxy. Doesn&#x27;t paint a good picture.
NiklasMort大约 7 年前
That&#x27;s hardly news, nor surprising given its done systematically on purpose. Imagine people would be aware of how they are being ripped off by the financial systems...that&#x27;d be bad. There is a reason why finance basics or general life skills are not taught in schools (no matter if US or EU). Sure you maybe learn how to calculate interest but that&#x27;s probably about it.
9889095r3jh大约 7 年前
After reading &#x27;Thinking Fast and Slow&quot; by Daniel Kahneman, I&#x27;m not surprised people can&#x27;t calculate their bill and determine change in line at the super market. Solving math problems like that requires deliberate focus and effort. Nobody has the time or energy to do that on line at the supermarket. Most probably estimate.
TorKlingberg大约 7 年前
I appreciate that the BBC links to the original study. The tables and figures are all at the end: <a href="https:&#x2F;&#x2F;johnjerrim.files.wordpress.com&#x2F;2018&#x2F;03&#x2F;piaac_working_report_march_2018.docx" rel="nofollow">https:&#x2F;&#x2F;johnjerrim.files.wordpress.com&#x2F;2018&#x2F;03&#x2F;piaac_working...</a>
baybal2大约 7 年前
Basic arithmetics is not the only deficient field in UK secondary school math curriculum. Higher tier domains like statistics, calculus, trigonometry, geometry, vectors, math analysis are deficient too.
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RickJWagner大约 7 年前
I absolutely believe it.<p>Warren Buffet is working to fight this, he&#x27;s made a series of &quot;Secret Millionaire&#x27;s Club&quot; videos designed to educate kids about money. I think it&#x27;s a great program.
waldfee大约 7 年前
It bugs me that the list of countries isn&#x27;t sorted. Who does that?
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juskrey大约 7 年前
Results show clearly that those skills are not necessary for prosperity
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John_KZ大约 7 年前
They don&#x27;t control for age, so their study is worthless. Many of the countries mentioned as &quot;the worst&quot; have ageing populations and lots of emigrants.
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