TIAA Institute – GFLEC Personal Finance Index

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30 March 2017 INSIGHTS, LINKS

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U.S. adults are split 50/50 between those who could and those who could not answer over one-half of the P-Fin Index questions correctly. Sixteen percent of Americans demonstrated a relatively high level of personal finance knowledge and understanding, i.e., they answered over 75% of the index questions correctly. Twenty percent have a relatively low level of knowledge and understanding, answering 25% or less of the questions correctly.

Personal finance knowledge is lowest in the area of comprehending risk; on average, 39% of these questions were answered correctly. This is troubling given that uncertainty is a common feature of financial decision-making. Future conditions are simply unknown, thus, comprehending risk and its implications is integral to making appropriate decisions.

Discover more here .