U.S. adults answered just 47% of personal-finance questions correctly in 2026, down 2 percentage points from a year earlier and the lowest score since the P-Fin Index began in 2017.
One-quarter of Americans now rank in the very low literacy category, as rising gas prices, persistent inflation, social-media information overload and weaker post-COVID educational attainment weigh on financial knowledge.
Gen Z posted the weakest results at 38%, with 37% in the lowest knowledge tier, while women scored 44% versus 50% for men and trailed most in investing, insurance and risk comprehension.
AI is emerging as a finance tool despite those gaps: 29% of Gen Z and 24% of millennials have used it for personal-finance information, compared with 8% of baby boomers.
TIAA said the slide raises risks of retirement shortfalls and misaligned benefits, pushing employers toward more targeted, life-stage financial education.