U.S. adults scoring below 25% on financial literacy tests are three times more likely to lack funds for unexpected expenses.
Adults with very low financial literacy are three times more likely to be unable to cover a $2,000 unexpected expense within a month. The finding comes from the 2025 TIAA-GFLEC Personal Finance Index, which tracks financial knowledge among Americans.
Financial literacy in the U.S. has remained stagnant at around 49% correct answers on the index since 2017. Despite rising nominal wages, households face challenges from inflation at 3.7%, rate volatility, and pandemic disruptions, which absorb income gains rather than building savings.
Those scoring 25% or below on the index are also five times more likely to lack emergency reserves, highlighting a persistent gap in financial resilience.