Financial Literacy Review

The research in this report seeks to inform and provide additional perspectives on how consumers are navigating their digital financial education today. It builds upon a strong foundation of research and best practices regarding the financial health of U.S. consumers. Below is a brief summary of existing consumer insights for practitioners to strengthen the financial education resources and delivery to consumers. Note: The summary includes select studies from the past 5 years and is not exhaustive of all existing studies. 

Key Learnings: 

• Financial literacy levels are generally low across the country

  • Financial literacy levels vary significantly¹ across different demographic groups.

  • Multiple studies indicate that there is room for improvement in basic financial literacy levels among Americans. 

  • Financial literacy among Americans appears to be (slowly) increasing^₂
     

• Financial literacy shapes financial health

  • Financial literacy tends to be low across generations, but particularly so among Gen Z³

  • Individuals with high financial literacy are more likely⁴ to demonstrate positive financial behaviors such as saving and planning for retirement.

_{1. Consumer Financial Protection Bureau. Financial Literacy Report (2022)
2. Milken Institute. Financial Literacy in the United States (2021)
3. Global Financial Literacy Excellence Center (GFLEC). TIAA Institute - GFLEC Personal Finance Index (2024)
4. FINRA Foundation. Financial Capability in the United States (2022)}