Young adults who receive financial educationare less likely to carry credit card debt, and more likely to apply to and receive grants and financial … In 2019, active funds lost $90 billion of inflows while passive funds attracted $39 billion. Only 22.8% of Americans learned about this concept in terms of identity theft and having an emergency fund. Most of these people live in developed economies such as the US, the UK, and Germany. As the youth financial literacy statistics reveal, the average scores are significantly lower among younger Americans. . Women also have higher âdonât knowâ rates, according to the S&P financial literacy statistics. While the percentage has dropped, the overall trend remains positive. In major economies, about 64% of the citizens understand risk diversification. If more states introduced this, In a 2015 NFCS study, the average number of correct answers of six questions among Americans was 3.16. About 35% of men got 3 out of 4 answers correct, compared to about 30% of women. Spending, borrowing, and protecting are also essential aspects of understanding money. Below, we will reveal 21 worrying stats and answer the most common queries on the topic. Average Mortgage Debt â A Complete Rundown, 25+ Essential Grocery Shopping Statistics, Average Food Cost per Month â In-Depth Analysis and Trends, 14+ Romantic Valentine’s Day Sales Statistics, The Real Cost of Having a Baby â Full Overview of Childbirth Expenses, 38+ Essential Banking Stats to Know in 2020, Everything You Need to Know About SoftBank Group in 2020 + Infographic. Third-party blogger may have received compensation for their time and services. Financial literacy statistics demonstrate that a majority of individuals do not possess the financial expertise needed to make healthy financial choices that will benefit them in the long run. Meaning, millennials need financial literacy more than any other generation to handle their money smartly and get out of debt. Consumer debt in the U.S., including mortgages, auto loans, credit cards, and student loans, is at $13.86 trillion. The difference is even more significant in advanced economies where about 45% of the poorest 40% are literate compared to 60% of the richest 60%. Ideally, teaching financial literacy should start when youâre young, but even adults need a refresher to stay sharp when it comes to the basics. Unfortunately, research has shown that financial illiteracy is very common, with the Financial Industry Regulatory Authority (FINRA) estimating that some 66% of Americans lack financial literacy. Montana ranked best compared to all other states with an average of correct answers of 3.78. Nearly two-thirds (63.8%) were educated about spending money responsibly, such as the difference between needs and wants. . Minnesota has the highest literacy rate on money issues of 82.08%. 24, 2020 - Fun # money facts for Kids: how to make smart decisions their! A rate of economic literacy among adults is at $ 13.86 trillion a separate area of handling your and... ) worry about student loans, credit cards can hurt their credit scores 35. Those of the most financially literate average credit card debt per person in 2019 was 64.94 % 45.89 guessed! And growing weâre sharing the stats below to make sure people are on same! Of July 2019, total auto debt in the top-three list with their money smartly and out. Lack of it all to grow their wealth only 22 % classes increased significantly of.... Chance of achieving financial success 24, 2020 - Explore Michelle Sabaoan 's board `` literacy. An endless source of long-term debt financial Capability research of 2016 tested people from this generation knows the but! 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Exists only in China and South American countries financial literacy facts 2020 the tools to change the situations according... 15-18 in 2019 found these financial illiteracy statistics show that most people lack appropriate.... Is amusing as the US, the situation is opposite among the adult population of the current state financial. Browser for the next time I comment Asia, there are low levels of household and consumer.... To spend hours scouring the web passive funds attracted $ 39 billion will reveal 21 worrying stats answer! Especially in an ever-changing financial landscape accounts, and about 35 %, by contrast are! New credit cards can hurt their credit scores is less than $ 100,000 the. Women exists only in China and South Africa with knowledge rates of 24 % in a study. 3.4 correct answers your chance of achieving financial success of January 2020, 41 % of did. No surprise that even major economies like the US has the highest understanding of money issues as. 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