Financial Literacy Test
The NFEC’s National Financial Literacy Test measures the areas covered within national financial literacy standards and breaks down the results into three distinct key areas that have an impact on one’s financial capability: Motivation to Learn, Subject Knowledge, and Recognition of the First Step.
There were 2459 youth between 15 and 18 years old who participated in this national financial literacy test between January 3rd 2012 and February 21st 2014. Youth from over 40 states completed the exam and the average score was 59.6%.
Of the 2450 participants: 115 (4.7%) participants achieved a score at or above 90%, 271 (11.0%) participants achieved a score at or above 80%, 539 (21.9%) participants achieving a score at or above 70%. The remaining 1534 (62.4%) participants scoring at or under 69.9%.
Youth Financial Literacy Test
Updated to Include 2014 Results
Complete this test and/or share it with the youth you serve.
The NFECs National Financial Literacy Test features:
The NFECs financial education test measures each of the ten areas covered within the financial literacy standards These topics include: Financial Psychology, Credit & Debt, Accounts & Budgeting, Skill Growth, Income, Business Relations, Long-Term Planning, Risk Management, Investments and Social Enterprise.
The NFECs National Financial Literacy Test measures each of the aforementioned subjects and breaks the test down into three distinct areas that impact ones financial capability.
- Motivation to Learn – Do the participants understand how the subject of financial literacy impacts their daily life? Do they relate the handling of their personal finances to their dreams? Motivation to learn is a critical area to measure, as it directly impacts how we deliver the instruction and lessons within the curriculum that are focused on.
- Subject Knowledge – Most financial education tests simply measure subject knowledge – example: What is APR? While this is important, it is only one area that impacts ones financial capability. The NFEC uses this measurement in combination with the other two mentioned to achieve a more complete evaluation of one’s financial capability.
- Recognition of the First Step – The NFEC recognizes this as a critical component on moving participants to take positive action – do they understand the first step that leads them toward a better financial position? Most financial literacy curriculum and tests do not measure or teach this critical component. Providing instruction that includes the exact steps they should take is critical for retention and implementation of the material.
The NFEC recognizes the importance of measuring all these elements that go into developing a successful financial literacy campaign. With these three areas of measurement, a comprehensive financial education initiative can be designed which will maximize the results of the participants.
Conducting financial literacy tests can help your organization evaluate your financial education program, the instructors and can directly impact you’re funding. Administering testing before and after your financial literacy program is an important part in developing a sustainable campaign.
The NFEC includes quizzes and test with their entire financial literacy curriculum (free lesson plans) and events. In addition, the NFEC offers customized financial literacy testing, measurement and long-term studies that measure the change in behavior.
With comprehensive pre and post testing your organization stands a better chance of receiving financial literacy funding. This may help your organization sustain your programs and reach more people with the training.
Gathering quantitative data can measure the students understanding and the overall effectiveness of your financial education program. Learn more about the National Financial Educator Councils’ tests that are included in our curriculum and financial literacy programs.
To learn more about the National Financial Educators Councils’ financial literacy tests complete the form located on the contact us or the solution center page to learn more.
Financial Literacy Test Tips
Erin Mitchel, National Financial Educators Council Contributing Writer
As most of us are aware, money management skills are important for children to develop at a young age.
The effectiveness of this curriculum should be an ongoing process of education, implementation and monitoring how much participants retain by offering a series of financial literacy tests and financial literacy quizzes.
Hands on testing of practical matters can provide a student the experiential learning experience of the material they studied and will directly impact their short and long-term goals. The written section of within a financial literacy test helps them to identify the areas where more study is required.
Professional finance speakers understand effective administration of a financial literacy test it is important to conduct a pretest first. This will give you a base line of the student’s knowledge. If the delivery of the financial literacy curriculum and test is home be sure not to lead your student into answers during the pre and post test. Let them do the work on their own to get the most reliable data.
After the students have received some type of high school financial literacy curriculum the next step is to administer the post test. Ensure the post financial literacy test covers the material they learned and be sure not to skip portions of the financial literacy lesson plan that may be on the financial education test.
Financial literacy tests can include a wide variety of topics like: how to pick a career, comparing the pay between job offers, how to pay your bills on time, budgeting for living expenses, how to start saving for short term goals, comparing credit card offers, and a variety of other subjects. Be careful to choose financial education tests that align with the subjects you are teaching.
National Financial Educator’s Council (the NFEC) Real Money Experience (RMX) is a prime example of the practical teaching method that works with kids and has excellent results on post financial literacy test. The students visit twelve different stations, meet with financial literacy speakers and make life decisions that will impact them when they move away from home.
The experiential learning experience the students receive when they enter the RMX event will provide them hands on experience so the information is retained; thereby improving the results of the post financial literacy test.
The Real Money Experience event has students choosing a career and making education choices that affect their income. They decide on clothing and transportation options that fit their career while the financial literacy test is if their choices will fit into their budget.
Participants of this financial education event quickly become aware of the ongoing expense of each decision. The expenses can be as simple as insurance, dry cleaning or utility costs, for example. The volunteers help participants set up a saving plan that matches their future lifestyle goals, create a budget, make credit and investment decisions and this interaction acts as a financial literacy quiz as students enter each booth.
The end of the financial literacy events is capped with a practical financial literacy test based on the lessons they learned.