Thursday, May 19, 2016
3 basic financial questions that surprisingly stump most Americans
Prepare to be shocked at just how little most Americans know about even the most basic financial concepts. No wonder we devote the entire month of April to boning up on financial literacy.
Read: Investors need to know the answer to this key financial question.
To get an understanding of how woefully uneducated the masses are when it comes to money, economists from Wharton and George Washington University have been asking three basic financial questions — very basic — for years, and the results have been rather startling.
Before you try your hand at it, here’s how others have fared: According to a working paper published last year, only half of Americans over the age of 50 answered at least two of the three questions correctly. Less than a third got them all right.
When breaking it down by education, only 44% of Americans with a college degree nailed all of them. That number drops to 31% for those with some college.
Of course, you’re a MarketWatch reader, so 100% should be a slam dunk.
Give it a shot: