Do you know how much you could earn with that?
Given that “finance” and “education” are sometimes not the most popular topics, the results of this poll are somewhat surprising – and pleasing.
Results of the ING International Survey on Financial Competence suggest there is a link between understanding basic financial concepts and the careful management of money. So this money knowledge might literally pay off. In the IIS, more than 11,000 people in 11 countries in Europe were polled with the results showing respondents who scored more highly on the test were more likely to have positive financial habits (such as going through their bank statements and other financial documents thoroughly each month). Other studies in the wide range on this topic had similar results, with this paper http://econpapers.repec.org/paper/wpawuwphe/0108001.htm from the United States finding financial education boosted savings.
Our infographic on Who is “financially competent”? makes the point that it’s never too late to learn about money.
Learning about money is only part of the puzzle – with procrastination and other thinking traps coming into play.
Likewise, the sources of financial knowledge are important, with this eZonomics poll on getting money advice from parents and grandparents explaining several potential traps. It suggests seeking information from a wide range of sources to try to minimise the chances of inadvertently “inheriting” unhelpful habits.
This article is related to the ING International Survey: