20+ Compelling Financial Literacy Statistics [2026]

Financial literacy research summary. Financial literacy remains one of the most essential skills for individuals in today’s economy, yet not everyone possesses it. Understanding how to save, budget, and make informed spending decisions are just a few key aspects of financial literacy. Our updated research highlights the current state of financial literacy in the U.S.:

• Only 57% of American adults are financially literate.

• 73% of teens express a desire for more personal finance education.

• Financial illiteracy costs Americans an average of $1,819 per year.

• 77% of Americans experience financial anxiety.

For a deeper understanding, we have categorized the data into the following sections: Adult Financial Literacy | Education | Cost of Financial Illiteracy | Financial Insecurity

Financial literacy rate demographics

The prevalence of financial literacy varies significantly across different demographics. Here are some notable statistics:

• Only 36% of Gen Z are financially literate.

  Younger generations are notably less financially literate than their older counterparts, with 59% of Baby Boomers considered financially literate.

  Financial literacy by generation

  Generation	Financial literacy rate
  Gen Z	36%
  Millennials	48%
  Gen X	48%
  Baby Boomers	59%

• Women are 40% more likely to have low levels of financial literacy.

  Approximately 21% of women score at a low level of financial literacy, compared to 15% of men.

• Asian and White Americans score the highest on financial literacy tests, answering 53.3% of questions correctly.

  Asian Americans and White Americans answered an average of 3.2 out of 6 financial literacy questions correctly, while Hispanic Americans answered 2.6 (43.3%) and Black Americans answered 2.3 (38.3%).

  Financial literacy by race/ethnicity

  Race/ethnicity	Average questions answered correctly	Percent of questions answered correctly
  White	3.2	53.3%
  Asian	3.2	53.3%
  Hispanic	2.6	43.3%
  Black	2.3	38.3%

• Financial literacy rates have decreased by 19% over the past decade.

  This decline in financial literacy rates reflects growing generational challenges in financial understanding.

Adult financial literacy

A considerable number of adults in the U.S. lack essential financial literacy skills. Here are some significant insights:

• 25% of American adults lack someone to turn to for trusted financial guidance.

  This generational issue leaves many families struggling with financial literacy, impacting children, parents, and grandparents alike.

• 63% of Americans live paycheck to paycheck.

  This equates to approximately 125 million Americans, highlighting the link between financial literacy and economic stability.

• 71% of Americans believe they possess high financial literacy levels.

  Despite this self-assessment, the average American only answers between 35-55% of financial literacy test questions correctly.

• Only 16% of Millennials grasp basic financial principles.

Financial literacy education

The lack of financial literacy among adults is largely attributed to insufficient education. Effective financial literacy education is vital, whether it comes from parents or the school system. Consider the following:

• Only 25% of American teens feel confident in their personal finance knowledge.

  Confidence is divided along gender lines, with 33% of teen boys and just 21% of teen girls feeling assured in their financial knowledge.

• 24% of 15-year-olds regularly discuss finances with their parents.

  With limited financial discussions at home, school-based financial education becomes even more crucial for teens.

• 20 states mandate financial literacy education in high schools.

  To understand the impact of these mandates, here’s a detailed list of states and their requirements:

  Financial literacy education requirements by state

The cost of financial illiteracy

Low financial literacy imposes significant costs on Americans, impacting both personal finances and the broader economy. Here are some alarming statistics regarding the financial implications of illiteracy:

• 15% of adults lost over $10,000 last year due to a lack of financial literacy.

  This amount can severely affect one’s ability to make significant purchases like homes or cars.

• 38% of adults lost at least $500 last year due to financial illiteracy.

  Even this seemingly smaller amount can be critical for essential expenses like car repairs or groceries.

• 53% of Americans lack an emergency fund.

  The inability of 60% of Americans to cover a $1,000 emergency with savings highlights a pressing financial vulnerability.

Financial insecurity

Financial insecurity affects millions of Americans, exacerbated by insufficient financial literacy. Here are key indicators of financial insecurity:

• Despite full-time employment, 35% of American families struggle to meet basic needs like rent, food, and healthcare.

• 18% of adults report merely “getting by” financially.

• 55% of Americans feel their retirement savings are inadequate.

• 73% of American adults cite finances as their primary source of stress.

• 29% of Americans experience daily financial stress.

Financial Literacy FAQ

1. What is financial literacy?

   Financial literacy encompasses the skills and knowledge necessary to make informed financial decisions. A financially literate individual can effectively earn, spend, invest, save, budget, and borrow money. For instance, a financially literate person understands that a car loan should not exceed 10-15% of their total income, guiding them in making responsible purchases.

2. What percentage of Americans are financially literate?

   57% of U.S. adults are financially literate. This marks a 19% decline from a decade ago, primarily due to generational disparities in financial understanding.

3. Where does the U.S. rank in financial literacy?

   The U.S. ranks 14th globally in financial literacy. Despite being the wealthiest country, this ranking raises concerns about financial education and preparedness.

4. What percentage of adults are financially literate globally?

   Globally, only 33% of adults are financially literate. This indicates that approximately 3.5 billion adults worldwide lack essential financial knowledge.

Conclusion

Financial literacy is an essential skill that many adults in the U.S. still lack, with only 57% considered financially literate as of 2026. Alarmingly, this percentage has declined over generations. As inflation and economic pressures continue to challenge American families, enhancing financial literacy is more critical than ever.

To address this issue, a collaborative effort from states, parents, and educators is required to ensure that American young people receive the financial education necessary for successful adulthood.

References

1. Annuity – From the Experts: Is Financial Illiteracy a Growing Problem in the U.S.?

2. Advisor – How Much Do Americans Lose Due To Financial Illiteracy?

3. CNBC – 77% of Americans are anxious about their financial situation—here’s how to take control

4. TIAA Institute – Financial literacy and wellness among U.S. women

5. TIME – Financial Literacy Education Could Help Millions of Americans

6. PR Newswire – Survey Finds Gen Z Lacks Knowledge and Confidence in Personal Finance and Investing

7. MoneyRates – States Where Financial Literacy Education Is Working

8. Orlando Sentinel – Empowerment through education during National Financial Literacy Month

9. New York Post – More than a third of working families can’t afford basic needs: study

10. CNBC – 55% of Americans are behind on saving for retirement—and that’s OK

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.