The Financial Literacy Crisis

Imagine getting behind the wheel of a car without knowing the rules of the road or even how to operate it. Scary, right? Here’s another scary circumstance – many Americans are making financial decisions with minimal financial knowledge of investing, budgeting, and credit.

The TIAA Institute conducted a survey on U.S. financial literacy, asking 28 basic questions about retirement savings, debt management, budgeting, and other financial matters. The average respondent answered only about half of the questions correctly.¹

Another recent survey conducted by the Census Bureau found that almost 40% of Americans say that it has been somewhat or very difficult to pay for usual household expenses in the last seven days.²

Knowledge is Power

Financial success doesn’t usually come by accident. It’s built with intention, discipline, and—most importantly—education. One key barrier to greater financial understanding is the “Lake Wobegon effect,” a term that describes how we often overestimate our own abilities. When it comes to money, many people assume they’re doing better than they really are, which may discourage them from seeking the education they need.

But here’s the truth: the financial landscape is always changing. From interest rates and inflation to tax laws and digital banking tools, staying informed is the best way to stay empowered.

Take the First Step

Whether you’re trying to improve your credit, build a budget that works for your life, or start investing for the future, there are valuable resources available to help you take control of your financial wellbeing. If you’re ready to build a stronger financial foundation, start by checking out our free education tools or connect with one of our financial professionals. And remember, just like learning to drive, financial literacy takes practice—but the journey is worth it.

<sub>1. TIAAInstitute.org, 2022
2. Census.gov, 2023</sub>

_{The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.}