86% of Americans Are Naive about the Financial World
The Financial Industry Regulatory Authority’s Investor Education Foundation recently did a study about the average American’s knowledge of the financial world. The study consisted of a quiz of five questions, which can be found on the FINRA website.
The results were quite unspectacular.
Only 14% of test takers were able to answer all five questions correctly. This indicates that the financial knowledge in this country is below average.
61% of study participants were unable to answer three of the five questions. This is an increase from the 58% from the 2009 study.
One-third of Americans claimed they did not compare credit cards before selecting one, which isn’t a good sign for their ability to make financial decisions.
However, in spite of these poor results, there were some positive indications that came from the study. In 2009, only 35% of Americans had a rainy day fund. That number has now improved to 40%. 20% of Americans spent more than their income in 2009, but now only 19% do. More importantly, 41% of those participating in the study said they spend less than what they make each month. These improvements may be small, but they do show hope for the future.
Take the FINRA quiz today and see how well you do.