Australian 15-year-old students are among the best performers in an OECD Programme of International Student Assessment (PISA) survey of financial literacy. Among the 18 countries and economies that participated in the assessment, Australia ranks somewhere between 3 and 5.
PISA 2012 defines financial literacy as “…knowledge and understanding of financial concepts and risks, and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve the financial well-being of individuals and society, and to enable participation in economic life”.
The PECD found that in Australia, financial literacy is strongly correlated with mathematics and reading performance. Around 79% of the financial literacy score reflects skills that can be measured in the mathematics and/or reading assessments (compared with 75%, on average, across OECD countries and economies), while 21% of the score reflects factors that are uniquely captured by
the financial literacy assessment.
However, students in Australia perform better than might be expected in financial literacy, based on their performance in mathematics and reading. The difference between observed and expected performance in financial literacy is particularly large among students with high scores