Americans' financial literacy slumps to a 10-year low
Summary
A new study shows that Americans' financial knowledge has dropped to its lowest point in 10 years. Only 47% of financial literacy questions were answered correctly in 2025, indicating that many people struggle with managing debt, savings, and retirement planning.Key Facts
- U.S. adults answered 47% of financial literacy questions correctly in 2025, down from 52% in 2020.
- The share of Americans with very low financial literacy rose from 20% ten years ago to 25% in 2025.
- Low financial literacy is linked to difficulties in managing money and higher debt levels.
- Women scored 44% correct, while men scored 50%.
- Young adults (ages 18-29) scored the lowest at 38%, while baby boomers scored highest at 54%.
- Increased financial complexity and misleading social media information may contribute to the decline.
- Experts suggest the financial system is too complicated, making it harder for people to understand key products.
- Financial companies may make products confusing by hiding important details in small print or long disclosures.
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