U.S. Financial Literacy Hits 10-Year Low, TIAA-Stanford Survey Finds

U.S. adults’ grasp of basic money concepts fell to a decade low in 2026, a TIAA-Stanford University survey released June 1 shows, signaling weaker household capacity to navigate borrowing, saving and investing decisions. The annual gauge of understanding of inflation, compound interest and risk diversification found the share of Americans correctly answering foundational questions has steadily eroded since the mid-2010s. Fewer than half of respondents passed the basic literacy quiz for the first time, researchers said, though precise scores were not immediately disclosed. The persistent decline threatens retirement preparedness and could deepen wealth disparities, economists warn, as individuals with lower literacy are more likely to rely on high-cost debt and miss important investment opportunities. The findings highlight a growing urgency for financial education initiatives at schools and workplaces.