American Financial Literacy Hits 10-Year Low as Gen Z Scores Lowest on Record
A 2026 study by the TIAA Institute and Stanford's Global Financial Literacy Excellence Center found that U.S. adults answered only 47 percent of basic financial questions correctly, the lowest score in a decade. Gen Z adults scored just 38 percent. Researchers say social media misinformation and complex financial products are driving the decline.
American adults answered only 47 percent of basic financial questions correctly in 2025, according to the 2026 TIAA Institute-GFLEC Personal Finance Index. That is the lowest score since the survey began a decade ago, down from a high of 52 percent in 2020.
The share of Americans with very low financial literacy grew from 20 percent in 2017 to 25 percent in 2026. Gen Z adults, ages 18 to 29, scored the lowest at 38 percent. Baby Boomers scored the highest at 54 percent.
The study covered eight areas of personal finance, including borrowing, saving, investing, and understanding risk. Comprehending risk was the weakest area, with only 36 percent of related questions answered correctly.
Research lead Surya Kolluri said individuals with lower financial literacy are four times more likely to struggle to make ends meet and three times more likely to be financially fragile.
Experts point to several causes. Financial misinformation spreads quickly on social media platforms. Many financial products, including retirement accounts and insurance policies, have become more complex. And formal financial education remains inconsistent across schools.
The TIAA Institute recommends that employers offer financial wellness programs as part of their benefits packages. The U.S. Treasury Department has expanded access to the FDIC's free Money Smart program in response to the findings.
