Financial literacy has reached its lowest point in a decade.
The TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) released findings from its 2026 TIAA Institute-GFLEC Personal Finance Index, which tracks financial literacy over the course of 10 years.
It found that financial literacy is at its lowest level in the survey’s history, driven by a lack of financial knowledge among a growing number of adults. According to TIAA, groups who fell in the lowest knowledge category included Gen Z workers and women, showing a persistent level of generational and gender disparities.
“Ten years of the P-Fin Index has given us an invaluable window into what Americans know about their personal finances and what they do not,” said Surya Kolluri, head of TIAA Institute. “Financial literacy has never been lower, and Gen Z is entering adulthood without the foundational knowledge they need to thrive.”
Adults also marked low scores on retirement literacy, with individuals averaging only two correct answers out of six retirement-related questions.
Low literacy levels can impact how adults interact with their finances. Individuals with failing scores were four times more likely to struggle to stay financially afloat, and three times more likely to feel financially fragile.
A push for financial literacy
The findings also show a clear roadmap at helping individuals with the help of financial education. Adults who received some sort of education earned higher scores compared to those without, and were associated with saving regularly, managing debt effectively, and feeling confident about retirement goals.
Those who scored higher marks with retirement-related questions were likelier to consistently save for retirement and feel confident about their ability to save comfortably for retirement.
TIAA and GFLEC’s findings show that supporting individuals early on could have a positive effect on financial literacy levels. School-based financial education starting in kindergarten and moving to high school is one of the most powerful tools to instilling financial knowledge in young people.
Moving into adulthood, employer-wellness programs are valuable at reaching workers. For retirees, community-based initiatives could help support financial wellness, TIAA and GFLEC say.
New policy initiatives may also open the door for financial learning. Trump Accounts, launching on July 4, have been celebrated by much of the industry for helping parents and employers build long-term financial security for children by allowing contributions to a tax-deferred individual retirement account (IRA).
The accounts will provide a $1,000 federal seed contribution for children born between Jan. 1, 2025, and Dec. 31, 2028. Total annual contributions are maxed at $5,000, with employers being able to contribute up to $2,500 annually.