Financial Education Shown to Boost Literacy Scores by 13 Percentage Points
A new report from the TIAA Institute finds that adults who have received financial education score 13 percentage points higher on financial literacy assessments than those who have not. The finding comes as overall U.S. financial literacy has hit its lowest level in a decade.
Adults who have received financial education score 13 percentage points higher on financial literacy assessments than those who have not, according to a new report from the TIAA Institute.
The finding is significant because it comes at a time when overall U.S. financial literacy has hit its lowest level in a decade. The 2026 TIAA Institute-GFLEC Personal Finance Index found that American adults correctly answered only 47 percent of assessment questions on average, down from previous years.
The report identified Gen Z as the group with the most pronounced knowledge gaps, with participants in that age group answering only 38 percent of questions correctly. A gender gap also persists, with women scoring 6 percentage points lower than men overall.
Comprehending risk was the weakest area across all groups, with only 36 percent of questions answered correctly. Retirement knowledge was also low, with adults answering an average of just two out of six retirement-related questions correctly.
The 13-point boost from financial education suggests that targeted instruction can make a real difference. Employers are increasingly being seen as key partners in delivering financial wellness programs, since many adults spend significant time at work dealing with personal financial stress.
The report found that individuals with very low financial literacy spend about 11 hours per week dealing with financial issues while at work, effectively losing more than one full workday per week to money worries.
Researchers say the findings support expanding financial education in schools and workplaces. California recently adopted a personal finance curriculum guide for high schools, and several other states are considering similar requirements.
