Americans' Financial Knowledge Falls to 47% 10-Year Low as Stress and Misinformation Mount
Updated
Updated · The New York Times · Jun 12
Americans' Financial Knowledge Falls to 47% 10-Year Low as Stress and Misinformation Mount
1 articles · Updated · The New York Times · Jun 12
Summary
47% of 28 Personal Finance Index questions were answered correctly on average this year, the weakest result in the survey's 10-year history and below its prior 52% peak.
TIAA Institute researchers tied the decline to persistent financial strain since the pandemic—including inflation in groceries and gas—and to social media "finfluencers" that blur useful advice with noise.
Weak financial literacy is linked to poorer money decisions and greater financial fragility, including being unable to raise $2,000 within a month for an emergency expense.
Higher literacy, by contrast, is associated with regular saving, better debt management and greater confidence about retirement, underscoring the broader risks of the slide.