A 2023 Pew Research Center survey shows that 54% of U.S. adults say they know a great deal or a fair amount about personal finances. However, financial literacy varies significantly based on income, race, and age, underscoring persistent economic disparities in the U.S.
Financial literacy by demographics
- Income:
- 72% of upper-income households report being knowledgeable about personal finances.
- This figure drops to 56% for middle-income and 42% for lower-income households.
- Race and Ethnicity:
- White adults (58%) are more likely to report financial literacy compared to Black (50%) or Hispanic adults (41%).
- Asian adults fall in the middle, with 49% reporting financial knowledge.
- Age:
- 63% of adults aged 50 and older say they know a great deal or fair amount about personal finances, compared to 45% of those aged 18-49.
Conversely, 22% of lower-income Americans say they know little to nothing about personal finances — a stark contrast to just 4% of upper-income earners. Similarly, 27% of Hispanic adults report low financial literacy, higher than Asian (17%), Black (14%), or White adults (8%).
Confidence in financial skills
Americans express varying levels of confidence in their ability to perform financial tasks:
- 75% are confident in finding their credit report.
- 59% feel confident creating a monthly budget.
- 57% believe they can create a debt repayment plan.
- 56% are confident in their ability to save money.
- Only 27% are confident in creating an investment plan.
Confidence also differs by income, race, and age:
- Upper-income adults are more confident in all financial tasks compared to middle- and lower-income groups.
- White adults report higher confidence in budgeting and debt management than Black, Hispanic, or Asian adults.
- Adults 50 and older are generally more confident, except when it comes to investment planning, where confidence is low across all age groups.
How Americans learn about personal finances
Most Americans learn about finances from family and friends:
- 49% say they learned a great deal or fair amount from family and friends.
- Other sources include:
- Internet: 33%
- College or university: 27%
- Media (news, documentaries, books): 24%
- K-12 schools: 19%
Learning methods also vary by demographics:
- Asian adults (64%) are more likely to learn from the internet compared to Hispanic (48%), Black (42%), or White adults (26%).
- Younger adults (50%) rely more on the internet than older adults (19%).
- Media plays a larger role for Asian (45%), Hispanic (36%), and Black adults (34%) compared to White adults (19%).
- Lower-income adults (29%) are more likely to learn from K-12 schools than middle-income (18%) or upper-income (10%) adults.
The need for better financial education
With just over half of Americans confident in their financial knowledge and skills, experts continue to call for enhanced financial education in high schools. Expanding access to financial literacy programs could help bridge gaps caused by income, race, and age, ensuring more Americans are equipped to manage their finances effectively.
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