In the U.S., April was officially designated as Financial Literacy Month in 2004, a move spearheaded by President George W. Bush. This designation followed the idea of "Youth Financial Literacy Day," which had already been adopted as an official month in eight states. By solidifying it at the federal level, the government sought to highlight the importance of financial literacy and raise awareness of its impact on individuals and society.
But how financially literate are we really? Is the push for financial education working? To answer these questions, we can look to data from various organizations that track financial knowledge, such as the National Financial Educators Council (NFEC).
Since 2014, the NFEC has conducted an annual 30-question assessment covering 10 key areas of personal finance. As of January 2025, around 93,000 Americans have participated in the test, with an average score of 67.4%, which is below a passing grade. This highlights a key issue in personal finance education.
When broken down by age group, a clear trend emerges:
While financial literacy improves with age, the scores indicate that there is still a significant gap in knowledge, especially when considering the financial challenges people face today.
Pew Research also recently conducted a survey to gain insights into how Americans perceive their financial knowledge. According to their findings:
This disparity is concerning because financial literacy is essential for making informed decisions about budgeting, saving, investing, and securing a stable future.
Another interesting finding from Pew's research:
When it comes to sources of financial education:
Active curiosity followed by action is the most effective way to build your financial knowledge. The next time you encounter a financial concept you don’t understand, don’t just move on—take the time to research it, ask someone, or find reliable online resources. Whether it’s learning how to track expenses, understanding your credit score, or exploring investment options, every question is an opportunity to deepen your financial understanding.
Having this sound backdrop of personal financial prowess enables you to make informed decisions about your money, which, in turn, helps you manage your finances more effectively.
And what better to pair that knowledge with than your Origin account? Head to your dashboard and you’ll immediately enter an executive view of your entire financial life that comes equipped with the power to thoroughly manage your money—set a budget, track expenses, save, invest, learn, get advice, or even create an estate plan and file your taxes, all within Origin.
This topic was initially sent out to readers of The Gist, Origin’s personal financial newsletter that delivers bite-sized money insights and news, sent to your inbox twice a week.