Uncover the Truth About Americans' Financial Literacy

Knowledge about Personal Finances

Approximately half (54%) of U.S. adults claim to know a great deal or a fair amount about personal finances. Another 33% state they know some, while 13% admit they don't know much or nothing at all. This knowledge encompasses various strategies like saving, budgeting, managing debt, and investing.

For instance, in households with upper incomes (72%), people are more likely to have a good understanding of personal finances compared to those in middle (56%) or lower incomes (42). White adults (58%) are also more likely than Black (50%) or Hispanic (41%) adults to have a significant knowledge base. Interestingly, about half of Asian adults (49%) share this level of knowledge, and these differences persist regardless of income.

Money Management Skills

U.S. adults have diverse confidence levels in their ability to perform different financial skills. Most (75%) are extremely or very confident in finding their credit report. A smaller majority is equally confident about creating a monthly budget (59%), a plan to pay off debt (57%), and saving money (56). However, only 27% express confidence in creating an investment plan to build wealth.

Income, race, and age also influence these confidence levels. Adults with upper incomes are more likely to be confident in all these skills compared to those with middle or lower incomes. White adults are more confident in finding their credit report, creating a budget, and paying off debt than Black, Hispanic, or Asian adults. Adults aged 50 and older are more confident in most tasks except creating an investment plan compared to those aged 18 to 49.

Where Do Americans Learn About Personal Finances?

While more experts advocate for greater financial education in high school, relatively few Americans have learned this in school. Among those knowledgeable about personal finances, 49% learned from family and friends, which is the highest share. Around a third or fewer learned from other sources such as the internet (33%), college or university (27%), media (24%), and K-12 schools (19).

For example, Asian adults (64%) are more likely than Hispanic (48%), Black (42%), or White adults (26%) to learn from the internet. Adults aged 18 to 49 (50%) are more likely than those 50 and older (19%) to acquire this knowledge from the internet. Asian (45%), Hispanic (36%), and Black adults (34%) are also more likely than White adults (19%) to learn from media. And adults with lower incomes (29%) are more likely than those with middle (18%) or upper incomes (10%) to learn from K-12 schools.