Only 5% of Americans Pass This 8-Question Money Test — Can You?

Do you think you understand money better than most people? A new test suggests you might be surprised. Only 5% of U.S. adults correctly answered all 8 questions on a basic financial-literacy quiz (a test of how well you understand money topics like saving, borrowing, and investing).

The quiz was created by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC), two research groups that study how well people handle money. This is the 10th year they've run the study — and 2026 produced the worst scores ever recorded.

Here are the key numbers:

• 5% of U.S. adults answered all 8 questions correctly
• 13% got zero questions right
• The average person answered just 3.7 out of 8 correctly
• Financial knowledge has dropped 5 percentage points since 2020

Why does this matter? The researchers found a strong link between knowing about money and actually doing well financially. Compared to people with very high money knowledge, those with very low knowledge are:

• 4x more likely to struggle paying bills
• 2x more likely to be stuck with too much debt (money you owe)
• 3x more likely to be "financially fragile" (unable to handle a sudden expense)
• 4x more likely to lack enough savings to cover even one month of living costs
• 3x more likely to spend 10+ hours a week stressing over money problems

The good news? Knowledge leads to better habits, says Stanford economics professor Annamaria Lusardi, who co-wrote the report. She explains that education works best *before* people start investing — for example, in high school or college. That's because once someone starts putting money into markets, they often pick up bad habits that are hard to break.

The takeaway: Learning money basics isn't about passing a test. It's about protecting your wallet, reducing stress, and building a more secure future. Even a little financial education can make a big difference.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/only-5-of-u-s-adults-can-ace-this-8-question-financial-literacy-test-can-you-93a57cc6?mod=mw_rss_topstories