Despite being the wealthiest country on earth, the U.S. ranks 14th in the world in financial literacy, according to The Wall Street Journal citing a global survey of financial literacy
Norway, Denmark, and Sweden took the top three spots, respectively, while the U.S. was edged out by Singapore (12) and the Czech Republic (13). As a whole, 57% of Americans scored a passing grade, compared to 71% for Norwegians.
Here's how the study was conducted:
This new measure of financial literacy comes from a survey of 150,000 adults in 148 countries. To conduct a survey of this scope, Standard & Poor’s Ratings Services partnered with the Gallup World Poll, the World Bank, and the Global Financial Literacy Excellence Center at George Washington University.
To gauge financial literacy, and capture whether adults know how to make sound decisions, the researchers asked questions on four basic personal finance topics: inflation, interest, compounding and financial diversification. Anyone providing correct answers to three of the four topics was rated as financially literate.