- 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.
Tuesday, December 1, 2009
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: