Standards and Assessments in Financial Literacy

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girl putting money in piggybank
Reach out to us to sign up for periodic updates and to request more information about how we support states and schools to develop high-quality standards and assessments.

Financial literacy education supports young people in developing the skills they need to make informed financial decisions. However, in many states, limited cohesion exists among governmental agencies and institutions of education, commerce, and banking that might support the development of financially literate citizens.

Financial literacy education must be approached systemically to address the limited cohesion among states and build young people’s proficiency in this area. At AIR, we address this need by working with clients on a wide range of projects, including the creation or revision of high-quality financial literacy standards, analysis of curriculum, and evaluation of the connections to post-secondary readiness and financial literacy. Our experts in financial literacy assessment also track how students are doing across the nation and the world. AIR seeks to provide support and guidance through research and evidence-based practices so that, together, we can ensure all students receive the resources they need to become financially literate citizens.
 

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RISE webinar logo

Results from the 2022 Program for International Student Assessment (PISA) highlight United States students’ performance in financial literacy and gaps or areas of future growth around equity. Particularly:

  • Scores were not significantly different from 2018 or 2012. The U.S. ranked 4th among 20 participating education systems.
  • Black and Hispanic students scored lower than the U.S. average, while Asian and White students scored higher than the U.S. average.
  • Public schools with at least 75% of students eligible for free-or-reduced-price lunch (FRPL) scored lower than the U.S. average, while schools with less than 50% of students eligible for FRPL scored higher than the U.S. average.

View the RISE Webinar: Financial Literacy Skills for the 21st Century for more information on the PISA results.

Project Highlights

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Graphic: AIR Social Studies Standards Ecosystem

 

 

AIR’s Standards and Assessment ecosystem provides a cohesive and comprehensive structure to guide the development of financial literacy standards-based systems. 

Explore our project highlights below for examples of how we've supported clients through our ecosystem.

In 2021, the New Mexico Department of Education updated its social studies standards. As part of this work, AIR worked with the state education agency to determine whether there was a need for including financial literacy in the social studies standards...

Following the decision to include financial literacy, AIR shared compiled research and resources for personal financial literacy to inform New Mexico’s social studies standards which include financial literacy standards at each grade level.

Learn more about AIR's work in planning and facilitating

In 2023, on behalf of Pennsylvania’s State Department of Education, AIR conducted a landscape scan, facilitated a committee of educators to review the current K-12 Career Education and Work, Family and Consumer Sciences, and Economics Standards, and created a process to revise the standards...

In partnership with the FINRA Investor Education Foundation, AIR developed and conducted specific evaluation activities to measure the implementation and effectiveness of the Military Financial Readiness Project and Investor Protection Campaign initiatives.

Working with the Securities Industry and Financial Markets Association, AIR conducted a randomized controlled trial to test the impact of playing the Stock Market Game on the financial literacy and mathematics achievement of students in grades 4–12...

AIR measured teachers’ implementation of the game and students’ level of engagement with it.

Learn more about AIR's work analyzing curricula

AIR has been supporting the National Center for Education Statistics (NCES) in developing the Highlights of PISA U.S. Results on financial literacy for four PISA cycles, starting in 2012 and most recently in 2022...

AIR also conducted data analyses using the PISA 2015 Financial Literacy U.S. data for a report by the Consumer Financial Protection Bureau, an organization that supports the NCES administration of PISA Financial Literacy Assessments in the U.S. Based on the follow-up analysis using PISA 2018, AIR has published an NCES blog post that discussed the importance of young adults’ conversations with their parents on financial matters.

Learn more about AIR's work conducting alignment studies

In 2023, AIR provided written expert testimony to the DC State Board of Education for evaluating, supporting, and implementing financial literacy standards...

Additionally, AIR was invited to participate in the National Governors Association roundtable on financial literacy. AIR shared its knowledge and expertise to discuss questions surrounding financial literacy, including, but not limited to, understanding the current challenges with state financial literacy, the scope of financial literacy, unpacking “financial wellness,” and engaging targeted populations/demographics.  

Learn more about AIR's work supporting policy and practice

AIR supports financial literacy assessment for the Program for International Student Assessment (PISA) and survey questions for the Program for the International Assessment of Adult Competencies (PIAAC)...

AIR is currently working on a report on financial literacy based on data from the PIAAC background questionnaire. The report will be released in 2025.

Learn more about AIR's work supporting policy and practice