Gen Z and Millennials: Among Gen Z (18-24) adults, 13% say they are not financially literate, which is greater than older age groups.The need for improvement becomes even more evident when looking at disparities in financial literacy across demographics, in particular:

Overall, there is room for improvement as most people are only somewhat confident in their financial knowledge and abilities. The findings suggest a decrease in financial literacy over the past two years, but a slight uptick from 2022. adults (29%) claim to be very financially literate, although still a lower percentage than in 2021. How has financial literacy changed within the last few years? Looking at yearly averages, a larger percentage claim to be financially illiterate this year (10%) compared to 2021 (9%). In addition, more people have said they are only somewhat financially literate during this same period of time. However, a growing percentage of U.S. adults say they are ‘not at all financially literate,’ while the majority claim they are ‘somewhat financially literate.’ Over a quarter feel they are ‘very financially literate.’ Here’s where things stand today: How People Rate Their Financial LiteracyĪccording to recent CivicScience data, 1-in-10 U.S. In light of financial literacy month (April), CivicScience took stock of financial literacy in the U.S. These findings, amongst others, are concerning, especially considering the current challenging economic conditions.

adults correctly answered less than half of 28 basic money questions in their annual financial literacy survey. Those can include poor credit, bankruptcy, unsustainable debt burdens, and housing foreclosures through lack of long-term financial preparation or poor spending decisions, for example.Īccording to the 2023 TIAA Institute-GFLEC Personal Finance Index, U.S. When a person is even somewhat financially illiterate, it can lead to numerous pitfalls. Unfortunately, when it comes to money matters, what you don’t know can hurt you – and according to recent data, numerous Americans are not as financially literate as they could be.įinancial literacy refers to how well an individual understands money topics such as saving, investing, budgeting, income, interest rates, and spending habits.

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