Annual survey shows personal finance knowledge declining

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{{ Americans’ already poor money savvy fell even further this year, a worrisome trend, researchers said, because people with weak understanding of basic finances often make poor financial decisions.

On average, adults correctly answer about half of the 28 questions in the Personal Finance Index, a survey of financial knowledge. The average has never topped 52 percent. This year, it was just 47 percent, the lowest level in the 10-year history of the survey.

“Certainly, it’s disturbing,” said Surya Kolluri, head of the TIAA Institute, which administers the survey with researchers at the Stanford University Global Financial Literacy Excellence Center. (The institute is the research arm of the investment firm TIAA, which runs retirement plans for many educators.)

https://www.nytimes.com/2026/06/12/your-money/americans-financial-knowledge.html?searchResultPosition=1

The article mentions that many states, both Red and Blue, require high school students to take a financial literacy course. I wonder if the curriculum varies? Are the Red States getting the Dave Ramsey version, while the Blue are taught the gospel of Jack Bogle and Warren Buffett?

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[pauleckler]

How do you measure “financial knowledge”? What is important?

One hopes high school graduates know something about interest rates, credit scores, how to get a loan. The high cost of credit card debt. Something about stocks, investments, Ira’s, 401k, retirement planning and funding.

You hope they can fill out an income tax form. Know about Social Security and Medicare. Should they know about Medicaid? Obama care?

If they get that far I think we should be satisfied. Learning about investments, investment styles, index funds, etfs, mutual funds, financial advisors, etc is too much for most. But letting them know where to go to find out more is a start.

A very tall order. Tough to fill. Tough to reach everyone including those who find the subject boring.