One-third of Americans fail financial literacy quiz

Thirty-one percent of men have a high level of financial understanding compared to 23 percent of women. Almost 40 percent of consumers over the age of 55 have a high level of understanding while only 21 percent of consumers under 55 could say the same thing.

The study also revealed that respondents were unsure of their own knowledge of investments and financial products. One-quarter said they are “not at all knowledgeable” on financial products, yet 60 percent answered five to seven questions correctly. And the few Americans who rated themselves as “very knowledgeable” (6 percent) actually scored poorly on the quiz.

Americans interested in improving their financial understanding can:

• Educate early. Twenty four states have some type of financial literacy requirement for K-12 education.
• Educate at work. Many worksite education programs currently focus on transactional activities – how to enroll in a health or retirement plan, how to select investments, etc.
• Acknowledge and address differences. Differences in confidence levels, as well as actual knowledge levels, should be addressed as part of a targeted education program.
• Communicate resources. Make people aware of the many resources available to them, whether through a website, financial institution, organization, or advisor.