Only 4% Of Americans Aced This 7-Question Financial Literacy Quiz — Can You?

When it comes to understanding everyday financial concepts, most Americans are still struggling. According to new findings from the FINRA Investor Education Foundation’s National Financial Capability Study, just 4% of respondents answered all seven questions on a basic financial literacy quiz correctly. And while some areas — like inflation — show improvement, the overall results highlight the need for stronger financial education.

What the Quiz Measures

The FINRA quiz focuses on seven questions that cover common financial topics: interest rates, inflation, bond prices, mortgages, stocks, debt, and probabilities. These are all issues that come up in everyday decisions — from choosing between a 15- or 30-year mortgage to deciding whether to invest in a stock or mutual fund.

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In total, more than 25,500 adults across all 50 states and Washington, D.C. took the quiz. On average, respondents answered only 3.3 questions correctly, gave 1.5 incorrect answers, and said “don’t know” to 2.2 questions.

Only 27% of participants got at least five questions right. Just 4% answered all seven correctly.

Could You Answer These?

Here’s a sample of the types of questions included in the quiz:

Question: Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?

Answer choices:

• Less than 2 years
• 2 to 4 years
• 5 to 9 years
• 10 or more years
• Don’t know

The correct answer is 2 to 4 years, but only about 30% of participants got it right, according to USA Today. This concept — how fast debt can grow when interest compounds — is key to avoiding long-term credit card problems.

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Another question focused on inflation and savings:

Question: Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

Correct answer: Less than today.

FINRA’s data shows that 58% of Americans answered this one correctly in 2024, up from 53% in 2021. Among people aged 55 and older, 72% got it right — the highest score of any age group.

Some States Scored Higher Than Others

Financial literacy also varied significantly by state. According to FINRA, Minnesota topped the list, with nearly 35% of residents answering five or more questions correctly. Wisconsin, the District of Columbia, Colorado, and Wyoming rounded out the top five.

Meanwhile, in the lowest-ranking states — Louisiana and Mississippi — fewer than 20% of participants answered at least five questions correctly.

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Why Financial Literacy Matters

Failing to understand basic financial principles like compound interest or inflation can have real-world consequences. Consumers who don’t fully grasp how credit card interest works, for example, may end up carrying balances they can’t afford — especially with today’s average credit card rates around 20%, according to Bankrate.

“Knowledge of everyday financial concepts remains a challenge for many Americans,” said Gerri Walsh, president of the FINRA Foundation. She added that although awareness of inflation has improved, more education is needed to help people navigate complex financial decisions.

Take the Quiz Yourself

Want to see how you stack up? The full seven-question quiz is available through the FINRA Foundation’s website.

Whether you’re brushing up on old skills or learning something new, understanding how your money works is always a smart move — no matter your age.

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