NFEC Analyzes Personal Financial Statistics for Maximum Impact

The NFEC has demonstrated a clear commitment to raising the financial capabilities of the world’s citizens. But it’s also important to recognize that all the NFEC programs and resources are based in rigorous empirical research. The organization, which has adopted a social enterprise model, also believes in measuring key personal financial statistics to guide program development and tailor instruction to a specific audience.

One example of a personal finance survey conducted by the NFEC was an online assessment of opinions about financial literacy topics among 452 U.S. adults. These adults completed a survey on the NFEC website between November 2012 and August 2013. The questionnaire asked them a series of questions designed to assess their opinions on various financial education matters.

Answers to this survey were compiled into a set of financial literacy statistics that are included on the NFEC website. For instance, 93% of respondents stated they felt the fact that students do not understand the financial ramifications of taking out a student loan was either a “very big” or a “big” problem.

The notion that students do not understand the consequences of student loan debt is backed up by results on a personal finance quiz the NFEC conducted with young people aged 15-18 during 2012 and 2013. Less than one-third of the students who took this test were able to score above the 70% level. It is critically important that concerned individuals and groups work together to begin raising young people’s knowledge and awareness of personal finance information in order to move them toward secure financial futures.

Testing and measurement should form an essential component of any activity designed to improve financial competencies. That’s why the NFEC advocates not only for effective programs and instruction, but also empirically-based measures to assess the impact of those initiatives and materials.