Financial Literacy Crisis in the U.S. – Key Research & Sources

📚 University-Level Research

1. Cambridge University – Financial Literacy and Financial Well-Being: Evidence from the U.S.
   Annamaria Lusardi & Jialu L. Streeter (2023)

   • Shows persistently low financial literacy and its link to poor financial behaviors.

   • https://www.cambridge.org/core/journals/journal-of-financial-literacy-and-wellbeing/article/financial-literacy-and-financial-well-being-evidence-from-the-us/318307008828D2D7932C13E04B90DD88

2. University of Pennsylvania (Wharton) & NBER – The Importance of Financial Literacy: Opening a New Field
   Lusardi & Mitchell (2023)

   • Explains how low literacy drives inequality and poor retirement planning.

   • NBER Working Paper PDF

3. University of Pennsylvania (Wharton) – The Economic Importance of Financial Literacy: Theory and Evidence
   Lusardi & Mitchell (2014)

   • Seminal review linking literacy to financial decision-making and macroeconomic impact.

   • Read via GFLEC

4. University of Georgia – Financial Knowledge and Best-Practice Behavior
   Cliff A. Robb & Ann S. Woodyard (2009)

   • Finds strong correlation between literacy and best financial practices.

   • ERIC Full Text PDF

🏛️ Government Sources

1. Consumer Financial Protection Bureau (CFPB) – Financial Literacy Annual Reports (2023–2024)

   • Tracks national financial education efforts and consumer capability.

   • 2023 Report

   • 2024 Report

2. U.S. Treasury & FINRA – National Financial Capability Study

   • Comprehensive data on Americans’ financial struggles and literacy gaps.

   • Full Report PDF

3. Federal Reserve – Research on Financial Literacy and Savings

   • “The Smart Money is in Cash?” – Links low literacy to lack of emergency savings.

   • Read Here

4. FDIC – National Survey of Unbanked and Underbanked Households (2023)

   • Highlights disparities in financial access and literacy.

   • Survey Overview

5. U.S. Treasury – National Strategy for Financial Literacy (2020)

   • Federal priorities for improving financial education nationwide.

   • Read Strategy PDF

📊 Lack of Preparation in School

• “88% of U.S. adults said high school did not leave them ‘fully prepared’ for how to handle money in the real world,” and 3 in 4 adults reported feeling financial stress—32% “often” and 42% “sometimes”.
  • “The Financial Literacy Crisis in America: 2023 Report”, Ramsey Solutions

• An updated report states 87% of U.S. adults said high school didn’t fully prepare them for real-world money management, and nearly 1 in 3 often felt stress about finances.
  • “The Financial Literacy Crisis in America: 2025 Report”, Ramsey Solutions

😰 Emotional & Mental Stress

• 77% of Americans report feeling anxious about their financial situation.
  • CNBC: “77% of Americans anxious over financial situation” [cnbc.com]

• 82% of adults state that they feel stressed about money.
  • BetterHelp article on Financial Stress Statistics [msn.com]

📉 Poor Objective Financial Literacy

• The average American scores just 48% correct on basic financial literacy tests, with scores hovering around 50% since 2017.
  • Motley Fool: “The Average American Scores Just 48%” [buyersdesire.org]

• 47% of U.S. adults rate their personal finance knowledge as “C” or worse.
  • WalletHub: “Financial Literacy Statistics (2025)” [wallethub.com]

💸 Disparities by Income

• Only 28% of Americans earning less than $25K per year are financially literate, indicating a strong income-linked knowledge gap.
  • Moneyzine: “US Financial Literacy Statistics 2025” [moneyzine.com]