Financial Literacy

Many Americans are functioning in today’s environment with a poor level of financial literacy. This is more true among women than men, and more true among underrepresented minority women than their white peers. Especially problematic in today’s environment is the finding that financial literacy is particularly low in the area of comprehending and understanding risk and uncertainty. On average, U.S. women correctly answered only one-third of the index questions related to risk and uncertainty. The same holds true among African American and Hispanic women.

Many healthcare sector employees have made changes to their retirement saving and investments since the onset of COVID-19. Nonetheless, confidence in the amount they are saving and in the investment of their savings has been shaken.

Precarious financial behaviors, coupled with low financial literacy, have left many millennials ill-equipped to face a severe economic crisis.

Americans’ financial literacy, while remaining low overall, has improved slightly in recent years. 

The financial decisions of millennials—defined as individuals age 18 to 37 in 2018—will likely affect the U.S. economy for the next 30 years.

This report uses the third wave of the P-Fin Index to examine the current state of financial literacy and financial wellness among African-American adults.

Achieving and maintaining financial well-being is a goal of many individuals. Increasingly, it’s a goal employers have for their workforce, as well.

Can financial advice serve as an effective substitute for financial literacy? It all depends on the investor.

Can financial advice serve as an effective substitute for financial literacy? It all depends on the investor.