The US Consumer Financial Protection Bureau (CFPB) has been a headache for big banks and payday lenders that take advantage of customers, but they have been an excellent advocate for consumers — and for financial literacy.
Photo by Michael Coghlan
Recently, the CFPB released a five-question quiz, based on PISA — the Programme for International Student Assessment. The PISA tests 15-year-olds to see how much they know about various topics, and it includes a section on basic financial literacy, such as how to read an invoice, interpret a stock chart, and handle sensitive emails from banks and other financial institutions.
It's a good reminder that it's never too soon to teach your kids about money, and that goes for consumer issues too. Basic budgeting is one thing, but you also want to teach kids how money actually works in the real world.
The CFPB lists five examples from the quiz here, so you can test your kids to make sure they're on the right track. And while you're at it, take the quiz yourself! The answers seem pretty straightforward, but that's kind of the point: To make sure you know how to handle some of the most basic financial situations.
Each question includes additional resources to help build on a particular skill, too. Beyond that, the CFPB has a handful of other resources and ideas for parents to teach their kids about money.
To take the money quiz, head to the link below.