American Financial Literacy Hits 10-Year Low, Study Finds
A 2026 study by the TIAA Institute and Stanford University found that American adults answered only 47 percent of basic financial literacy questions correctly, down from 52 percent in 2020. Gen Z scored the lowest at 38 percent. Researchers blame social media misinformation, rising household debt, and the growing complexity of financial products.
American adults are less financially literate than they were a decade ago, according to a 2026 study by the TIAA Institute and Stanford University's Global Financial Literacy Excellence Center.
The study found that U.S. adults correctly answered just 47 percent of 28 financial literacy questions, down from 52 percent in 2020. The share of adults falling into the "very low" literacy category rose from 20 percent to 25 percent over the same period.
The generational gap is wide. Gen Z adults, ages 18 to 29, scored the lowest at 38 percent correct. Baby Boomers scored the highest at 54 percent. Women averaged 44 percent correct, compared to 50 percent for men.
Researchers point to several causes. Social media platforms have become a primary source of financial information for younger adults, and much of that content is inaccurate or misleading. Rising household debt and financial stress also make it harder for people to focus on learning. The financial system itself has grown more complex, with more products, more account types, and more decisions than previous generations faced.
The findings land at a difficult moment. Inflation rose 3.8 percent over the 12 months ending in April 2026, the largest annual increase since May 2023. Total household debt has reached $18.8 trillion. About 2.6 million federal student loan borrowers entered default in the first quarter of 2026.
Financial educators say the solution starts with schools. Several states have moved to require personal finance courses for high school graduation, but coverage remains uneven. Advocates are pushing for a federal standard that would ensure all students receive basic financial education before they enter the workforce.
