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Financial Literacy Data Hub

Welcome to the Financial Literacy Data Hub!

Are you curious about financial literacy levels in the U.S.? We provide key insights using responses to the Big Three financial literacy questions from the FINRA Foundation's 2021 National Financial Capability Study (NFCS). Explore these charts to see how Americans score on the Big Three and gain a deeper understanding of personal finance trends.

Haven't taken the test yet? Do it here.

Knowledge of the Big Three and Individual Topics

Knowledge of Big Three and Individual Topics

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

Financial literacy is low among American adults. Only 29% answered all three questions correctly.

If we focus on individual questions, we see that respondents performed best on the interest question (69%) and worst on the risk question (42%).

Financial Literacy Is Lowest Among the Young

Only 14% of those under age 35 answered all three questions correctly.

Young people’s financial literacy knowledge lags that of older adults. Nevertheless, less than half of those 66 and older were able to correctly answer the Big Three.

Age

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

A Gender Gap in Financial Literacy

Gender

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

Thirty-eight percent of men responded correctly to all three questions, while only 20% of women did so.

This is an 18 percentage point gender gap. There is a gender gap for each of the three questions.

Financial Literacy Across Race and Ethnicity

A smaller fraction of Black and Hispanic Americans answered all three questions correctly compared to White and Asian Americans. 

This pattern holds for each question.

Race

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

Financial Literacy Across Education Levels

Education Level

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

Only 12% of those with, at most, a high-school diploma answered all three questions correctly, while 51% of those with a graduate degree did so.

Respondents had the most difficulty with the risk question, irrespective of education level.

Financial Literacy Across Marital Status

Married respondents have higher levels of financial literacy than unmarried respondents; 36% of married respondents answered the Big Three correctly.

Respondents had the most difficulty with the risk question, irrespective of marital status.

Marital Status

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

Financial Literacy Across Income Groups

Income

Source: Stanford IFDM calculation | Data: FINRA Foundation's 2021 National Financial Capability Study

The fraction of Americans that answered all three questions correctly ranges from 12% for those with incomes lower than $25K to 49% for those with incomes higher than $100K.

Respondents had the most difficulty with the risk question, irrespective of income level.

What Is the NFCS

The National Financial Capability Study (NFCS) is a large-scale, multi-year project that measures Americans’ financial capability. The FINRA Investor Education Foundation commissioned this national study in consultation with the U.S. Department of the Treasury and other federal agencies. The NFCS was first conducted in 2009 and then repeated every three years. It aims to benchmark key indicators of financial capability and evaluate how these indicators vary with underlying demographic, behavioral, attitudinal, and financial literacy characteristics. In each wave, the study deepened the exploration of topics that are highly relevant today.

The NFCS provides information on Americans’ financial capability, drawing from a sample of over 25,000 respondents. The large sample size allows researchers not only to study financial capability among the entire population but also to slice the data in different ways, providing detailed studies on population subgroups.

Professor and IFDM Faculty Director Annamaria Lusardi has been academic advisor to the FINRA Investor Education Foundation since the first wave of the study, assisting with the design of the survey instruments and co-authoring the reports.