Americans Hit Record-Low 47% on Financial Literacy Survey as 25% Fall Into Very Low Category
Updated
Updated · Benzinga · Jun 7
Americans Hit Record-Low 47% on Financial Literacy Survey as 25% Fall Into Very Low Category
3 articles · Updated · Benzinga · Jun 7
Summary
Americans answered just 47% of 28 financial literacy questions correctly in TIAA Institute’s latest survey, the lowest score since the study began more than a decade ago.
One-quarter of adults now rank as having very low financial literacy, with risk understanding the weakest area: only 36% of risk-related questions were answered correctly.
Gen Z posted the lowest scores of any generation, while Baby Boomers scored the highest, though the survey said risk knowledge improves little with age.
The findings suggest households facing more complex financial choices and abundant advice may struggle to judge risk and avoid costly mistakes, raising pressure on advisers to explain basics more clearly.
With endless financial advice online, why is Gen Z's financial literacy the lowest ever recorded?
Can traditional financial education protect a generation that learns about money from TikTok and crypto influencers?
America’s Financial Literacy Plummets to Historic Low in 2026: Why It Matters and How to Fix It
Overview
In 2026, U.S. financial literacy has reached a record low after years of decline, leaving many Americans without the essential knowledge to manage their finances. This widespread lack of understanding threatens both individual financial security and the effectiveness of employer-sponsored programs. As a result, more people face the risk of retirement shortfalls because they do not know how to plan or save for the future. Additionally, employees often fail to make the most of financial benefits offered by their employers, leading to misallocation and missed opportunities. The urgent need for better financial education is clear.