U.S. Adult Financial Literacy Hits Ten-Year Low, P-Fin Index Finds
The 2026 P-Fin Index found that U.S. adults answered only 47 percent of financial literacy questions correctly on average, the lowest score in the survey's ten-year history. Researchers say the decline reflects growing complexity in personal finance and gaps in financial education.
U.S. adults answered only 47 percent of financial literacy questions correctly on average in 2026, the lowest score recorded in the P-Fin Index's ten-year history, according to a report released by TIAA and the Global Financial Literacy Excellence Center.
The P-Fin Index tracks financial literacy across 28 questions covering topics including borrowing, saving, investing, insurance, and retirement planning. The 2026 results represent a statistically significant decline from the previous year.
Researchers say the drop reflects several factors. The personal finance landscape has grown more complex, with new products, changing tax rules, and shifting retirement account regulations creating confusion for many Americans. At the same time, financial education in schools remains inconsistent across states.
"People are making consequential decisions about their money every day, and many of them don't have the knowledge they need to make those decisions well," said one of the report's authors.
The survey found particularly low scores on questions about investing and insurance. Fewer than one in three respondents correctly answered questions about how bond prices respond to interest rate changes or how term life insurance differs from whole life insurance.
Younger adults scored lower than older adults on most topics, though older adults showed weaker scores on questions about digital financial tools and cryptocurrency.
Several states have moved to require financial literacy courses for high school graduation. As of August 2026, 57 school districts in New Mexico have adopted such a requirement, and similar legislation is advancing in other states.
The TIAA Institute said the findings should prompt employers, schools, and financial institutions to invest more in financial education programs.
