Financial literacy, wellness and resilience among African Americans: African American financial literacy

New insights from the Personal Finance (P-Fin) Index

Financial literacy is low among many U.S. adults, including African Americans. On average, African American adults answered 38% of the P-Fin Index questions correctly. Only 28% answered over one-half of index questions correctly, with 5% answering over 75% correctly (Figure 1). 

 
 
 
 
2019 P-Fin Index Figure #1
Source: TIAA Institute-GFLEC Personal Finance Index (2019).

Personal finance knowledge among African Americans tends to be lower than that of whites. On average, white adults answered 55% of the P-Fin Index questions correctly (Figure 2). Sixty-two percent of whites answered over one-half of the index questions correctly, with 22% answering over 75% correctly (Figure 3). One-third of African Americans demonstrated a relatively low level of financial literacy, i.e., they answered 25% or less of the index questions correctly, compared with 16% of whites.

 
 
 
2019 P-Fin Index Figure #2
Source: TIAA Institute-GFLEC Personal Finance Index (2019).
2019 P-Fin Index Figure #3
Source: TIAA Institute-GFLEC Personal Finance Index (2019).

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