- Adults correctly answered only one-half of the questions, on average, a troubling figure that has remained stagnant over time.
- More adults (23%) than any year of the survey could not correctly answer more than 7 of the 28 questions.
- Comprehending risk remains the area where functional knowledge tends to be lowest; only around one-third of these questions were answered correctly.
The 2022 index was fielded in January and includes more than 3,500 responses from four race and ethnic groups and five generations. Asian Americans were oversampled for the first time with the 2022 P-Fin Index, along with Black and Hispanic Americans. The novel data shows that financial literacy levels among Asian Americans and Whites tend to be equal, with both groups correctly answering about 55% of the questions. Black and Hispanic Americans each correctly answered about 35%.
“While this year’s Personal Finance Index is concerning, it must be noted that systemic factors and issues keep the economic playing field uneven for far too many Americans,” said TIAA Institute Senior Economist Paul Yakoboski. “As we work to improve financial literacy for all, we know that there are also demographic differences that can help or hinder those looking to achieve financial wellness, such as age, overall education levels and income distributions.”
Examining financial literacy across ages shows that it tends to be particularly low among those in early adulthood. Gen Z and Gen Y correctly answered only about…
