Americans Score Lowest Ever on Financial Literacy Test, Gen Z Hits 38 Percent
The 2026 TIAA Institute-GFLEC Personal Finance Index found that Americans correctly answered only 47% of financial literacy questions, the lowest result in the survey''s 10-year history. Gen Z performed worst, answering just 38% of questions correctly, and adults with low scores were four times more likely to struggle to meet basic expenses.
Americans answered an average of just 47% of financial literacy questions correctly in 2026, the lowest score recorded in the 10-year history of the TIAA Institute-GFLEC Personal Finance Index.
The index, released in June 2026, surveyed adults on 28 questions covering eight areas of personal finance knowledge. The share of adults with very low financial literacy rose to 25%.
Gen Z performed worst among all age groups, answering only 38% of questions correctly. Significant declines were recorded in five of the eight knowledge areas: consuming, borrowing, earning, insuring, and understanding risk.
The real-world consequences are measurable. Adults with low financial literacy scores were four times more likely to struggle to meet basic expenses compared to those with higher scores.
Separate research from the Employee Benefit Research Institute, published in July 2026, found that workplace financial education programs can close some of that gap. Employees who participated in employer-provided financial education scored 3.15 out of 5 on financial knowledge tests, compared to 2.60 for non-participants. Eighty-seven percent of participants reported confidence in reaching their financial goals, versus 73% among non-participants.
The catch: only about 9% of workers currently participate in such programs. However, 47% of those offered the services choose to use them, suggesting that low participation is largely a result of limited employer offerings rather than lack of interest.
The Financial Literacy and Education Commission, chaired by Treasury Secretary Scott Bessent, held a public meeting on July 27, 2026, to advance national financial education strategies.
