The more someone understands financial basics, the more likely they are to spend below their means and save for emergencies and retirement, according to the Financial Industry Regulatory Authority (FINRA).

Understanding money is the first step to managing it well, yet according to one long-running survey, the number of Americans who understand basic financial principles has hovered at around 50% for 8 straight years.1

This lack of knowledge cost the average American $1,015 in 2024, according to a survey from the National Financial Educators Council.2 And it can have a costly impact on day-to-day life too.

66% of US adults live paycheck to paycheck, up from 60% in just 2 years, according to the PYMNTS Intelligence report.3
33% of Americans have more credit card debt than emergency savings, according to a Bankrate survey.4
And only about half of Americans have at least $1,000 in savings, according to a survey by Ramsey Solutions.5
The flipside is that when people are financially literate, they do better with saving money, avoiding debt, and planning for long-term goals like retirement.