American Financial Literacy Hits 10-Year Low as Gen Z Scores Drop to 38 Percent
The 2026 TIAA Institute-GFLEC Personal Finance Index found that U.S. adults correctly answered only 47 percent of core financial questions, the lowest score in the survey's decade-long history. Gen Z scored just 38 percent and women scored 44 percent. Experts blame the complexity of the retirement system and social media misinformation.
American adults correctly answered an average of 47 percent of core financial literacy questions in 2026, the lowest score recorded in the TIAA Institute-GFLEC Personal Finance Index since the survey began a decade ago.
The index, which tests knowledge across areas including borrowing, saving, investing, insuring, and understanding risk, found that 25 percent of Americans now fall into the "very low" financial literacy category, up from 20 percent in 2017.
Gen Z adults, aged 18 to 29, scored just 38 percent. Women scored 44 percent compared to 50 percent for men. Baby Boomers scored highest at 54 percent. Comprehending risk was the weakest area overall, with only 36 percent of questions answered correctly across all age groups.
Surya Kolluri of the TIAA Institute said financial burdens like student debt and housing costs likely reduce the mental bandwidth younger generations have for financial learning. Economists John Campbell and Tarun Ramadorai pointed to the complexity of the U.S. retirement system as a structural barrier.
Matt Schulz of LendingTree cited social media misinformation as an additional factor, noting that the volume of financial content online, much of it inaccurate, makes it harder for consumers to identify reliable advice.
Despite the decline, the research shows that financial education works. People who receive formal financial education score 13 percentage points higher than those who do not. Higher literacy is also strongly linked to regular saving and confidence in retirement planning.
Researchers introduced a new abbreviated tool called the P-Fin 8 Index to help employers and educators measure financial literacy levels more efficiently and target interventions where they are most needed.
