American adults answered fewer than half of basic financial questions correctly in 2026, marking the lowest performance in a decade.
American adults scored 47% on the TIAA Institute’s 2026 financial literacy test, the lowest in the index’s 10-year history. The share of adults with very low financial knowledge rose to 25% from 20% in 2017, signaling a broad decline across spending, borrowing, investing, and retirement topics.
The drop reflects rising financial stress, with a third of adults struggling to cover monthly expenses. Social media, often a source for financial advice, provides engaging but rarely educational content. Complex decisions, such as Social Security claims or 401(k) investments, further strain confidence.
Experts describe the decline as a widening gap rather than isolated weaknesses, with foundational knowledge eroding across the population.