US Financial Industry Regulatory Authority’s Investor Education Foundation releases preliminary National Financial Capability Study findings showing large state gaps and improved inflation understanding

The Financial Industry Regulatory Authority’s Investor Education Foundation published preliminary findings from its National Financial Capability Study ahead of the full report due in July, highlighting wide variation in financial knowledge across US states and improved understanding of inflation. The results are based on a seven-question Financial Knowledge Quiz administered to more than 25,500 US adults. In the top-ranking states, more than one-third of respondents answered at least five questions correctly, versus fewer than 20 percent in the lowest-ranking states; Minnesota ranked first (34.78 percent), followed by Wisconsin (34.46 percent) and the District of Columbia (34.41 percent). Nationally, 27 percent answered at least five questions correctly, broadly unchanged from 28 percent in 2021. On inflation, 58 percent answered correctly (up from 53 percent in 2021), with the largest improvement among 18 to 34 year olds (44 percent versus 34 percent), while the 55 and above group held steady at 72 percent. The full National Financial Capability Study publication in July is expected to add findings on topics including financial wellbeing, income volatility, use of artificial intelligence for financial advice, home ownership, credit card usage, investing in taxable accounts, retirement savings and cryptocurrency ownership.