American Financial Literacy Hits 10-Year Low as Gen Z Scores Drop to 38 Percent
A new study from the TIAA Institute and Stanford University's Global Financial Literacy Excellence Center found that Americans correctly answered only 47 percent of basic financial literacy questions in 2025, the lowest score in the survey's 10-year history. Gen Z adults averaged just 38 percent correct.
Americans' understanding of basic financial concepts has fallen to a 10-year low, according to a new study from the TIAA Institute and Stanford University's Global Financial Literacy Excellence Center.
In 2025, U.S. adults correctly answered only 47 percent of 28 financial literacy questions, down from a high of 52 percent in 2020. The share of Americans with very low financial literacy has grown from 20 percent in 2017 to 25 percent today.
Gen Z adults, ages 18 to 29, scored the lowest of any generation, averaging just 38 percent correct. Baby boomers scored the highest at 54 percent. Women answered 44 percent of questions correctly, compared with 50 percent for men.
The consequences are real. People with low financial literacy are four times more likely to struggle making ends meet and three times more likely to be financially fragile, according to the study.
"Those with lower levels of financial literacy are four times more likely to have trouble making ends meet," said Surya Kolluri, head of the TIAA Institute.
Experts point to several possible causes. Social media has flooded consumers with financial advice, much of it inaccurate or misleading. Financial products have also grown more complex, making it harder for people without a strong foundation to evaluate their options.
"Knowing what financial content to follow and trust has never been harder," said Matt Schulz, chief consumer finance analyst at LendingTree. "There's an enormous amount of really smart and insightful personal finance information out there, but there's also a sea of garbage."
The study found declines across five key areas: consuming, borrowing, earning, insuring, and understanding risk. Retirement fluency was particularly weak, with adults averaging only two correct responses out of six retirement-related questions.
Kourtney Gibson, TIAA CEO of Retirement Solutions, said employers are well-positioned to help. "Access to the right knowledge and tools can change the trajectory of someone's retirement journey," she said.
