Americans' Financial Literacy Slumps to a 10-Year Low: Key Findings
Monday, 1 June 2026, 14:11
The Decline of Financial Literacy in the U.S.
In 2025, a startling statistic emerged: Americans' financial literacy, as assessed by a series of 28 questions, reached only 47% correct answers. This marks a decrease from a previous high of 52% in 2020. The findings stem from a study conducted by investment firm TIAA and Stanford University's Global Financial Literacy Excellence Center.
Key Concerns Raised by the Study
- Growth in Low Financial Literacy: The category of Americans exhibiting very low financial literacy has surged to 25%, a jump from 20% a decade ago.
- The declining scores raise alarms about the preparedness of households to handle critical financial decisions, such as managing debt and saving for retirement.
- Possible contributors to this decline may include misleading information on social media, general declines in literacy, and ongoing financial strains faced by families.
Surya Kolluri from TIAA Institute indicated that low financial literacy can result in worse financial outcomes for individuals.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.