Tuesday, December 1, 2009

So I started The Ascent of Money by Niall Ferguson last night, my reading group's latest selection, and I come across on page 13 reference to what people know (or rather, what they don't know) about economics and finance.  Below are some quick survey factoids he uncovered:
  • One in five Brits didn't know what effect on purchasing power would result from an inflation rate of 5 percent and an interest rate on their money of 3 percent.
  • Nearly a third do not know what the interest rate on their credit card was.
  • Almost a third claimed it was below 10 percent at a time when almost no card offered that low a rate.
  • Two thirds of Americans did not understand how compound interest worked.
  • A typical high school group scored a 52 on a test of basic personal finance questions.
I'm just getting into the book (17 pages in) and I've already found blogging material.  Can't argue with that. By the way, first chapter -- excellent.  Have high hopes for the rest of the book.

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