The Importance of Financial Literacy for Adults
Why These Matter for You (and Your Clients)
- With the average correct‐answer rate at ~48%, the baseline is low — meaning many organizations are working with stakeholders who lack foundational financial skills.
- Gaps by gender, income, and education mean that one-size training doesn’t work. Schools or companies you consult for likely have mixed levels of financial literacy across staff, clients, students, or stakeholders.
- Confidence and knowledge diverge: many feel they “know some” about personal finance, but when tested, their knowledge falls short — which means risk of poor decisions (especially for retirement, homeownership, business growth).
- For topics like retirement planning, homeownership, operations/wealth protection (which you focus on), these literacy gaps are large friction points — making your consulting services higher value.
- In the context of schools or organizations, investment in financial literacy isn’t optional — it’s a strategic asset: improving operations, unlocking growth, enhancing stakeholder resilience.
Statistics on Why it Matters
- According to the TIAA Institute‑GFLEC Personal Finance Index, U.S. adults correctly answered only 48% of the 28 financial-literacy questions in 2024 — and the lowest scores were in “understanding risk,” where the average was just 35%. TIAA+2The Motley Fool+2
- A survey by the National Financial Educators Council (NFEC) found that in 2024 the average person estimated they lost $1,015 due to lack of financial knowledge — extrapolated to a total U.S. impact of over $243 billion. NFEC
- In the 2024 survey by the American Bankers Association (ABA), 47% of U.S. adults said their personal financial knowledge deserved a grade of “C” or worse. WalletHub
- The 2024 index data also shows large disparities: for example, respondents earning less than $25,000 annually answered only 25% of the financial-literacy questions correctly, compared to 58% for those earning over $100,000. The Motley Fool+1
- In K-12 education, the Council for Economic Education’s 2024 “Survey of the States” found that 12 additional states since 2022 have passed legislation requiring a standalone personal-finance course for high-school graduation — reaching an additional ~21 % of U.S. high-school students. councilforeconed.org+1
The Gender Gap in Financial Literacy
Research reveals a persistent gender gap in financial literacy, with women generally demonstrating lower levels of knowledge and confidence in personal finance compared to men. This disparity can have far-reaching consequences, impacting women's ability to make informed financial decisions and achieve long-term financial security.
Addressing the gender gap in financial literacy requires targeted educational initiatives and empowering women to take an active role in managing their personal finances. Bridging this gap can lead to greater financial independence and security for women across all stages of life.
🔢Important Statistics for 2023-2025
- In the U.S., adults correctly answered only 48% of the questions in the TIAA Institute‑GFLEC Personal Finance Index in 2024. gflec.org+1
- Only about 35% of U.S. adults correctly answered questions around comprehension of financial risk in 2024. World Economic Forum+1
- 54% of U.S. adults say they know a “great deal” or “fair amount” about personal finances; 33% say they know only “some”. Pew Research Center
- Gender gap: Men answered 53% of the P-Fin Index questions correctly in 2024; women answered only 43%. The Motley Fool+1
- Income gap: Individuals earning < $25K answered ~25% of P-Fin questions correctly; those making $100K+ answered ~58%. The Motley Fool+1
- Globally: A “2024 Global Financial Well-being Report” found that while 99% of people have life goals like home ownership or comfortable retirement, only 51% were fairly confident they’ll actually achieve them. Home
- Educational gap: According to the OECD “Action needed…” report in 2024, students from socio-economically disadvantaged backgrounds performed significantly worse on financial literacy assessments; only about two-in-three had been exposed to basic tasks like “needs vs wants” in school. OECD
- Confidence among women: The 2024 Intuit Financial Literacy Survey found that 55% of women wanted to improve their financial literacy, but only 15% of women small-business owners felt very confident in their financial knowledge before launching a business. intuit.com
🎯 Why These Matter for the company
- With the average correct‐answer rate at ~48%, the baseline is low — meaning many organizations are working with stakeholders who lack foundational financial skills.
- Gaps by gender, income, and education mean that one-size training doesn’t work. Schools or companies you consult for likely have mixed levels of financial literacy across staff, clients, students, or stakeholders.
- Confidence and knowledge diverge: many feel they “know some” about personal finance, but when tested, their knowledge falls short — which means risk of poor decisions (especially for retirement, homeownership, business growth).
- For topics like retirement planning, homeownership, operations/wealth protection (which you focus on), these literacy gaps are large friction points — making your consulting services higher value.
- In the context of schools or organizations, investment in financial literacy isn’t optional — it’s a strategic asset: improving operations, unlocking growth, enhancing stakeholder resilience.
Connect with Portia BOLDHer SHE-EO
All Professional Media Credit to Tosha Ishmon (Ishmon Productions)