Financial Literacy Statistics

GFLEC's 2022 Financial Literacy Study

The TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) is an ongoing project now in its sixth year that annually assesses financial literacy among the U.S. adult population. Read the study here or check out some key findings below.

The Link Between Financial Literacy & Financial Well-Being

Key findings from page 2 of the study illustrate the connection between financial literacy and financial well-being.

Financial Literacy & Financial Well-Being by Generation

On page 16 of the study, this correlation is further illustrated by a chart showing how the connection between financial literacy and financial well-being is represented from Gen Z to the Silent Generation.

The study also observes:
"Increased financial literacy is not a panacea for poor financial well-being. Clearly, resources matter, as do access and opportunity in the financial system. At the same time, these findings demonstrate that the ability to make sound, appropriate financial decisions matters as well. One could even argue that this is particularly important among those with modest incomes and limited resources with which to work."

Singleton Foundation's GLFEC Study

In January 2019, the Singleton Foundation partnered with GFLEC to conduct a study on why Millennials use (or don't use) financial resources, and what influences their financial knowledge. Read the study here or check out some key findings below.

What Keeps Millennials from Using Existing Resources?

In our study, we found that Millennials are aware of and use online financial education resources, however, those who do not engage with online resources said they do not do so because of a few reasons:

There is no immediate need
They have trouble finding helpful information
They fear the information would be too complicated, or
They do not trust the information.

Investopedia's 2022 Financial Literacy Survey

The 2022 Investopedia Financial Literacy Survey asked 4,000 U.S. adults—1,000 each from the Generation Z (18-25), millennial (26-41), Generation X (42-57), and baby boomer (58-76) generations—about their financial know-how, habits, worries, and retirement plans. They found Americans are simultaneously trying to grasp personal finance basics, thinking about retirement, and investing in crypto. They learn differently than older generations have, too.

Read the study here or check out some key findings below.

Finding Finlit Online

The study notes:

"When asked where they get their investing information, all four generations surveyed by Investopedia said that friends, family, and the Internet are go-to education sources. Perhaps unsurprisingly, young adults that have grown up with social media and the Internet say they rely more on digital, often video-based content to learn about investing and personal finance.

A steep 39% of Gen Z investors said they get investing insights from YouTube, and another one in four turn to TikTok and Instagram. Millennial investors are keener on Internet searches (47%) but also rely on YouTube videos to learn about investing (40%).

The Internet is a go-to source of guidance for older generations, too. YouTube is just as popular among Gen X investors as it is for millennials. Baby boomers are the most likely generation to go directly to financial information websites like Investopedia for investing insights."

Key Takeaways

About 57% of U.S. adults are invested, but just one in three say they have advanced investing knowledge.
About half of all surveyed adults feel they have a deep understanding of consuming (managing spending and keeping a budget), paying taxes, and saving.
Cryptocurrency and stocks are the most popular assets held by Gen Z, millennial, and Gen X investors, but overall, many Americans (49%) have only a beginner-level understanding of digital currency.
More than half of each generation expects to retire, and 28% of millennials expect to use cryptocurrency to financially support themselves in retirement, and some Gen X and Gen Z respondents said the same (20% and 17%, respectively).
The Internet is a go-to source for investing and financial education for the young generations: 45% of Gen Z use YouTube, and 30% turn to TikTok. Millennials prefer Internet searches (47%) but also lean on YouTube (40%).

Financial Anxiety and Stress among U.S. Households

In this 2021 study, GFLEC conducted a study to chart the connection between finances and stress/anxiety in U.S. households: they found that 60% of people feel anxious when thinking about their personal finances. Read the study here!

MetLife Survey on Employee Wellness:
The Link Between Financial & Physical Health

In this 2022 study, MetLife seeks to answer what drive employee satisfaction. Pages 21 - 25 are of interest to us since they chart the connection between being "financially healthy" and "wholistically healthy."
Read the study here!

Improving financial health to bolster mental well-being

Page 25 gives us insight into the link between "financial health" and overall wholistic wellbeing:

"Financial stress has long been associated with

poor mental health. Though financial concerns

remain the top employee-cited reason for low

mental health, their impact has decreased by 12

percentage points since 2020.

The increased job security that many employees feel as a result of the competitive labor market and wage growth is surely contributing to increased financial wellness. But employers’ efforts over time have clearly had an effect. More employers now provide planning resources and tools (e.g., mobile apps, personalized content, access to professional advisors) to help employees shore up their finances.

Employee interest in financial planning workshops and tools has increased by 27 percentage points over the last five years. The proportion of organizations offering such programs has grown dramatically as well, from 18% to 55%, over the same period. And employees who are offered these tools and programs are 48% more likely to say that their financial health has improved in the past 12 months than those who are not."

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