Description of research:

• The TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) is the most comprehensive annual barometer of financial literacy among U.S. adults, measuring knowledge and understanding across eight common financial activities: earning, consuming, saving, investing, borrowing, insuring, understanding risk and gathering information.  
• The 2025 report found that only 49% of U.S. adults correctly answered financial literacy questions, with women (45%) and younger individuals (38%) performing even lower. Comprehending risk is the functional area where adult financial literacy remains low, across groups, only 36% of questions were answered correctly in 2025.  
• The study has tracked financial literacy since 2017 creating comparable data year over year. The findings have found a clear link between financial literacy and financial well-being, with those with low levels of financial literacy 2x more likely to be debt-constrained, and 3x less likely to cope with a $2,000 financial shock.  

Benefits/Impact:

• Provides policymakers, educators, and financial institutions with annual, data-driven insights that inform the design of targeted programs and policies to improve financial literacy, strengthen retirement readiness, and promote long-term household financial security in the United States. 
• Pinpoints knowledge gaps across demographic groups with detailed breakdowns by age, race, gender to help ensure interventions are equitable and inclusive 
• Establishes a trusted national benchmark for personal finance knowledge and preparedness, allowing year-over-year comparisons to help guide strategies that advance financial well-being for all Americans.