In 2005, we featured an article in the ClientTell about financial literacy in high school seniors. In case you don’t remember the details, the study in 2004 indicated high school seniors scored 52% on a financial literacy test. In a 2012 study, the Financial Industry Regulatory Authority (FINRA) shows financial literacy in young adults may be even worse, and financial practices among all age groups are dismal.
FINRA’s test consisted of five questions on everyday personal economics, such as interest rates and mortgages. On this test, adults age 18-34 scored a 46%. In comparison, people age 55+ scored a 66%. The test also revealed higher financial literacy among men, people making more than $75k per year, whites and Asians, and college graduates.
Other findings of the study include:
Respondents were asked to assess their own level of financial knowledge. Interestingly, about 73% gave themselves high marks, despite the quiz indicating otherwise. About 76% of respondents also think they are good at dealing with day-to-day financial matters, although the survey of financial practices shows what a small percentage actually engage in financially sound habits.
See the complete study – FINRA – Financial Capability in the United States