Financial Literacy Gap
The Literacy Gap
Despite its importance, financial literacy rates in the U.S. remain troublingly low. According to the TIAA Institute–GFLEC Personal Finance Index, the average American correctly answers only about half of basic personal finance questions — a statistic that has stayed flat for nearly a decade.​
By Income Group:
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28% of those earning <$25,000 are financially literate.
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38% at $25,000–$49,000.
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47% at $50,000–$99,000.
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58% of those earning $100,000+.
The U.S. median income ($43,289) falls in the range where most people are still more likely to be financially illiterate than literate. This highlights a strong correlation between income and knowledge: those with fewer resources also have less access to financial education, which perpetuates cycles of struggle.
Generational Differences
Financial Literacy By Generation
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Gen Z is the least literate generation, averaging just 38% correct on personal finance tests.
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Millennials face heavy consequences: 70% live paycheck-to-paycheck, and collectively they hold over $1 trillion in debt.
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16% of 18–24 year-olds already have debt in collections — serious repayment issues at a very young age.
$1 Trillion
in Millennial Debt
70%
of Millennials Live Paycheck-to-Paycheck
43%
of Low-Income Families Lack Wi-Fi
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Global Comparison:
The OECD’s Program for International Student Assessment shows that by age 15, students from higher-income families already outperform peers from lower-income families on financial literacy. These students are also more likely to expect to attend college, reinforcing future opportunity gaps.
