Think financial literacy was low? It got lower

According to a joint study by the TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business, more American adults have very low levels of financial literacy than in any given year. since 2017.

The annual Financial Literacy Study Barometer, based on a 28-question survey, found that adults answered only half of the questions correctly, on average, a figure that has changed little over time. said TIAA in output.

Perhaps more worryingly, 23% of adults, more than in any previous survey, could not answer more than seven of the 28 questions correctly.

Understanding risk remains the area where functional knowledge tends to be weakest; only about a third of these questions were answered correctly.

[More: San Francisco 49ers push finlit with robo-adviser Stash]

Financial literacy tends to be particularly low among young adults. Gen Z and Millennials only answered about 45% of survey questions correctly

The 2022 index went live in January and included more than 3,500 responses from four racial and ethnic groups and five generations.

[More: Closing the financial literacy gap]

Leveraging e-commerce to build financial literacy

For reprint and license requests for this article, click here

Sarah J. Greer