Abstract
Numeracy refers to the ability to use numbers, including converting percentages (e.g., 10%) into absolute frequencies (e.g., 1 in 10). Studies have suggested that numeracy is correlated to financial outcomes, suggesting its relevance to financial decisions. However, almost all research on numeracy has been conducted in high-income countries in Europe and North America. Our analyses suggest that low numeracy is much more common in low-income countries, thus potentially threatening the financial well-being of the world’s poorest. We analyzed data from the Lloyd’s Register Foundation World Risk Poll, which assessed basic numeracy in 141 countries, including 21 low-income, 34 lower middle income, 43 upper middle income, and 43 high-income countries. Numeracy was associated with being among the poorest 20% of one’s country, and with difficulty living on one’s income, even after accounting for income, education, and demographics. These findings underscore the importance of worldwide numeracy education.
Highlights
Numeracy refers to the ability to understand and use numbers [1]
The current paper presents secondary analyses of the 2019 Lloyd’s Register Foundation World Risk Poll, which assessed the basic numeracy skills of more than 150,000 participants in 141 countries around the world, including 21 low-income countries, 34 lower-middle income countries, 43 upper-middle income countries, and 43 high-income countries [25]
The present findings suggest that low numeracy occurs around the world, but is much more common in low-income countries (76%) than in high-income countries (32%)
Summary
Numeracy refers to the ability to understand and use numbers [1]. Basic numeracy involves understanding how to convert simple percentages into frequencies, or recognizing that 10% is the same as 1 in 10 [2]. Low numeracy can undermine people’s ability, confidence, and motivation to engage with numerical tasks [4,5,6,7]. Even after accounting for intelligence, low numeracy has been related to performing worse on decisions that involve numerical risks [8], even after accounting for intelligence [9]. A Romanian study found that bankers with low numeracy have worse job performance [10]
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