U.S. Adults Correctly Answer Only 47 Percent of Financial Literacy Questions in 2026, Hitting Decade Low
A new TIAA Institute study found that U.S. adults correctly answered only 47 percent of financial literacy questions in 2026, the lowest score in the index's 10-year history. Gen Z adults scored the lowest at 38 percent, while 25 percent of all adults now fall into the very low financial literacy category.
U.S. adults correctly answered only 47 percent of questions on the 2026 TIAA Institute-GFLEC Personal Finance Index, the lowest score in the index's 10-year history. The result marks a statistically significant drop from 52 percent in 2020.
Gen Z adults, ages 18 to 29, scored the lowest of any generation at 38 percent. More than one-third of Gen Z respondents fell into the very low financial literacy category. Baby Boomers performed best at 54 percent. Women scored 44 percent, six percentage points below men on average.
The share of U.S. adults with very low financial literacy has climbed to 25 percent, up from 20 percent in 2017. The decline spans five of the eight functional knowledge areas measured: consuming, borrowing, earning, insuring, and comprehending risk. Risk comprehension is the weakest area, with only 36 percent of questions answered correctly.
Retirement knowledge is also critically low. Adults averaged only two correct answers out of six questions covering retirement planning, Medicare, and long-term care.
Surya Kolluri of the TIAA Institute linked low financial literacy directly to higher debt burdens. People with lower scores are four times more likely to struggle to make ends meet and significantly less likely to have emergency savings.
Experts point to several causes: increasingly complex financial products, financial stress that pushes households into survival mode, and the spread of inaccurate financial advice on social media.
The federal government launched several initiatives in 2026 to address the gap, including Trump Accounts, which will provide $1,000 in tax-advantaged investment accounts for children born between 2025 and 2028, starting in July 2026.
