How much do you know about finance?

Each time financial surveys are published, I astonished at the results. These surveys are not new but, reading some books on economic history, they have left me amazed:

According to a 2007 survey in the United States:

• Almost a third (29%) of respondents said they had no idea what the interest rate on your card was.

• Another 30% said it was less than 10%, when in fact the vast majority of cards have interest rates well above 10 percent.

• The 50% of respondents said that they had learn nothing or not too much about finance at university

A 2008 survey revealed that:

• Two-thirds of Americans ( 66.6% ) do not understand how compound interest works

In a survey conducted by a group of graduate students from School of Business at the University of Buffalo:

• Only 14% understood that equities would outperform bonds in  more than 18 years.
• The 59%t did not know the difference between a private retirement plan, the Social Security pension and a pension plan.

But it does not only happen in the U.S., in 2006, the British Financial Services Authority conducted a survey which revealed that:

• One out of five respondents had no idea what would be the effect on the purchasing power of their savings if inflation rate were 5% and an interest rate were 3%.
• One out of ten did not know which was the best discount for a TV which cost £ 250: if £30 or 10%.

And you, how much do you know about finance?