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Can You Answer These 8 Personal Finance Questions Better Than Most Americans?
By Adam Hardy MONEY RESEARCH COLLECTIVE
A new study finds Americans’ financial literacy has fallen to its lowest level in years.
Adults in the U.S. are struggling to understand key money concepts, and the issue is getting worse, a new study finds.
The personal finance index, a nationwide financial literacy quiz developed by Stanford University and financial services firm TIAA, just posted the lowest reading in a decade. On average, respondents answered just 47% of the questions correctly.
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“Financial literacy is an essential life skill, like reading and writing,” Annamaria Lusardi, an economist from Stanford University and co-author of the study, said in a news release. “A decade of data shows we are not where we need to be, and this year’s results make the urgency impossible to ignore.”
In 2026, more than 3,600 Americans took the quiz, which tests the respondent’s everyday-money knowledge across the following eight areas: earning, shopping, saving, investing, managing debt, insuring, comprehending risk and evaluating information sources.
The highest average score was 52% in 2020. Since then, scores have largely declined. Last year, the average score was 49%. The researchers said in the report that a positive change in the public’s knowledge takes time, so a rapid improvement is not expected.
Low financial literacy is not just an academic concern, they argued. The study found that the people who score low are more likely to be struggling with money in the real world.
Respondents with low financial literacy (defined as having answered 25% or fewer of the questions correctly) were 4 times more likely to say they have trouble making ends meet each month, and were over 3 times more likely to say they spend at least 10 hours a week dealing with money issues.
The National Financial Educators Council, a separate group that tracks financial literacy in the U.S., recently published similar findings. The advocacy group said in March that most Americans fail to meet the “minimum proficiency benchmark” in financial literacy.
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Can you pass this personal finance quiz?
The following eight questions below were picked by the Stanford and TIAA researchers as a proxy for the full 28-question test in the study.
How many can you get right? The correct answers are located below.
1. Earning — Mark’s salary has increased over the past two years. What would be a plausible reason for this?
A. The number of workers with Mark’s skills increased where he lives and works
B. Mark completed several training courses at a local college
C. New technology reduced the demand for workers with Mark’s skills
D. Don’t know
2. Spending — A household budget cannot be used for which of the following?
A. To plan for necessary household expenses
B. To plan household discretionary spending
C. To track household financial assets
D. Don’t know
3. Saving — Akiko has $1,000 in savings that earns a 2% rate of return over the course of the year. The inflation rate during the year is 3%. Which statement is true?
A. She can afford to buy fewer things at the end of the year
B. She can afford to buy more things at the end of the year
C. It’s not clear whether she can afford to buy more things or fewer things at the end of the year
D. Don’t know
4. Investing — Which statement about investing is correct?
A. Investing in the stock of a single company is typically safer than investing in a mutual fund that holds shares of many companies in multiple industries
B. Investing in the stock of a single company and investing in a mutual fund that holds shares of many companies in multiple industries are typically equally safe
C. Investing in a mutual fund that holds shares of many companies in multiple industries is typically safer than investing in the stock of a single company
D. Don’t know
5. Managing debt — José owes $1,000 on a loan that has an interest rate of 20% per year compounded annually. If he makes no payments on the loan, at this interest rate, how many years will it take for the amount he owes to double?
A. More than 10 years
B. 5 to 10 years
C. Fewer than 5 years
D. Don’t know
6. Insuring — Katherine is a single 25-year-old worker who is in good health. What type of insurance coverage is she most likely to need in the near term?
A. Disability insurance
B. Life insurance
C. Long-term care insurance
D. Don’t know
7. Comprehending Risk — Lottery A pays a prize of $200, and the chance of winning is 5%. Lottery B pays a prize of $90,000 and the chance of winning is 0.01%. Expected winnings are greater in which lottery?
A. Lottery A
B. Lottery B
C. They are equal
D. Don’t know
8. Evaluating sources — Which of the following pieces of investment advice appears to be inappropriate for the respective individual?
A. A stock index fund to a 30-year-old worker saving for retirement
B. A stock fund that invests in small start-up businesses to a 75-year-old retiree
C. A bond fund to a 60-year-old worker for some of her retirement savings
D. Don’t know
(Correct answers: 1-B, 2-C, 3-A, 4-C, 5-C, 6-A, 7-A, 8-B.)
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Adam Hardy is Money's lead data journalist. He writes news and feature stories aimed at helping everyday people manage their finances. He joined Money full-time in 2021 but has covered personal finance and economic topics since 2018. Previously, he worked for Forbes Advisor, The Penny Hoarder and Creative Loafing. In addition to those outlets, Adam’s work has been featured in a variety of local, national and international publications, including the Asia Times, Business Insider, Las Vegas Review-Journal, Yahoo! Finance, Nasdaq and several others. Adam graduated with a bachelor’s degree from the University of South Florida, where he studied magazine journalism and sociology. As a first-generation college graduate from a low-income, single-parent household, Adam understands firsthand the financial barriers that plague low-income Americans. His reporting aims to illuminate these issues. Since joining Money, Adam has already written over 500 articles, including a cover story on financial surveillance, a profile of Director Rohit Chopra of the Consumer Financial Protection Bureau and an investigation into flexible spending accounts, which found that workers forfeit billions of dollars annually through the workplace plans. He has also led data analysis on several of Money’s marquee rankings, including Best Hospitals, Best Credit Cards, Best Places to Live and others. In 2025, Adam was named a Goldschmidt Data Journalism Fellow by the Society for Advancing Business Editing and Writing (SABEW). As part of the fellowship, he received hands-on training from SABEW, the U.S. Census, U.S. Federal Reserve Bank, Bureau of Labor Statistics and other federal government agencies in Washington, D.C. Adam also holds a multimedia storytelling certificate from Poynter’s News University and a data journalism certificate from the Investigative Reporters and Editors at the University of Missouri. In 2017, he received an English teaching certification from the University of Cambridge, which he utilized during his time in Seoul, South Korea. There, he taught students of all ages, from 5 to 65, and worked with North Korean refugees who were resettling in the area. Now, Adam lives in St. Petersburg, Florida, with his pup Bambi. He is a card-carrying shuffleboard club member.