The latest numbers on financial literacy are out, and they aren't pretty. U.S. adults got just 49% of the questions right on this year's personal finance index test, according to the 2025 Personal Finance Index from TIAA and the Global Financial Literacy Excellence Center. That's the same failing grade Americans have been earning since the survey began in 2017.
The 2025 P-Fin Index survey was completed online in January by a sample of 3,371 U.S. adults, ages 18 and older. The test uses 28 questions to measure people's overall financial literacy across eight areas in which they routinely function: earning, consuming, saving, investing, borrowing and managing debt, insuring, comprehending risk and go-to information sources.
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Younger Americans Are Struggling the Most
Scores were low across the board, but younger adults had the hardest time. Gen Z, on average, only answered 38% of the P-Fin Index questions correctly in 2025. Older adults did slightly better. Gen Y correctly answered 46% of the index questions, Gen X correctly answered 51%, and baby boomers and the Silent Generation, those born between 1928 and 1945, answered 55% each.
There was also a pretty clear gap between men and women (53% vs. 45% on average) and among racial and ethnic groups. White and Asian adults scored in the low 50s, while Black and Hispanic adults averaged in the high 30s.
One section of the test that most people had trouble with was risk. Questions about how to weigh risk had an average score of only 36%. This is problematic because uncertainty is inherent in many aspects of personal finance, such as investing and financial decision-making.
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Insurance is another weak spot. This means many Americans struggle with basics like how premiums, deductibles and out-of-pocket maximums work and what liability coverage actually protects. Without this basic knowledge, people could unknowingly overpay for low-value add-ons or end up underinsured when something goes wrong.
Americans did better when it came to borrowing and debt management. They scored in the high-50s on those questions, which means they have a slightly better understanding of how credit cards and loans work than of other financial basics.
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Why Should You Care?
Most American adults over 18 could only answer half of the index questions correctly, and this number is even lower among certain demographic groups, such as women, African Americans and Hispanics, and younger adults. This is concerning because the P-Fin Index measures the financial skills and knowledge we all need to navigate daily life.
In other words, people with lower scores are more likely to feel financially fragile, struggle with debt, and have fewer options when life throws a curveball their way.
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