American Financial Literacy Hits Decade Low as Gen Z Scores Drop to 38 Percent
The 2026 TIAA Institute-GFLEC Personal Finance Index found that American adults correctly answered only 47 percent of financial literacy questions on average, the lowest score in the survey's 10-year history. Gen Z performed worst, answering just 38 percent of questions correctly.
American adults correctly answered only 47 percent of financial literacy questions on average in 2026, the lowest score recorded in the TIAA Institute-GFLEC Personal Finance Index's 10-year history.
The annual survey, which tests knowledge across eight areas of personal finance, found that the share of adults with very low financial literacy has risen from 20 percent in 2017 to 25 percent in 2026.
Gen Z performed worst among all age groups, answering just 38 percent of questions correctly. Women scored six percentage points lower than men on average, a gap that has persisted across multiple years of the survey.
Knowledge gaps were broad. Declines were recorded in five of the eight functional areas tested, including borrowing, earning, consuming, insuring, and understanding risk. Comprehending risk was the weakest area overall, with only 36 percent of related questions answered correctly.
Researchers said low financial literacy correlates with financial fragility. People who score poorly on the index are more likely to struggle to cover unexpected expenses, carry high-interest debt, and lack retirement savings.
The findings come as several states have moved to require financial literacy education in high schools. Pennsylvania enacted such a requirement in 2026, and advocates are pushing for similar mandates in other states.
The TIAA Institute said the results point to a need for financial education at every stage of life, not just in school. Employer-sponsored financial wellness programs and community-based resources can help fill gaps for adults who did not receive this education earlier.
