Data talks. And from what it is saying so far, Americans have financial literacy problem which a lot of people are either not aware of or care very little about.

Many people obviously would love to make well informed financial decisions, but they have not come to embrace financial literacy as a viable tool for financial progress and prosperity.

The data we will be sharing in this article are meant to shade some light to the problem while proffering possible solutions that could help along the way.

Here are 7 Shocking financial literacy Statistics in America.

No. 1: Lack of Financial Literacy make about 78% of adult Americans live paycheck to paycheck.

A 2017 CareerBuilder survey found that majority of Americans are living paycheck to paycheck.

This means that 78% of earning Americans spend all their monthly income consumables with nothing left for savings and investment.

This means that many Americans are just one paycheck away from financial crisis.

This statistic was obvious during the pandemic as Jobless claims was over 30 million Americans.

This calls for urgent attention to be given to financial literacy as this is the only tool that will help people to make better financial decision about their income and spending choices.

No 2:  Four in five American youths failed a financial literacy quiz

A study done by FINRA Investor Education Foundation revealed a serious decline in financial literacy.

Young Americans from ages 18 to 34 years old showed a significant drop in financial literacy as they couldn’t answer majority of the questions asked correctly.  This was the opposite with those in older age bracket.

If anything, the data provides a strong case for youth financial education. The widening gap between younger Americans and their older counterparts, is only one aspect of the divide — not taking into consideration socioeconomic status, race, and gender.

This shows that there should be mass financial literacy program which can be mostly accessed by those within ages 18 to 34 as they are the most financially ignorant group.

No.3: 54% of millennials are concerned about student loans

In 2020, student loan debt reached a record high of $1.56 trillion. This level of debt obligation on the country is scary to the millennials who feels that this level of debt will affect their future financial obligations and outcome.

Global Financial Literacy Excellence Center reveals that over 50% of millennials are concerned over their ability to bear their debt burdens.

One way to help with this is for millennials to become more financially educated so that they wll know how much debt they should accumulate per time and how that could impact their future financial choices.

Also, they should begin to get more enlightened on student loan refinancing, consolidation, and the option of loan forgiveness by taking advantage of the current federal student loan forbearance.

No. 4. 53% of adult Americans are financially anxious.

The lack of financial literacy among Americans is causing a lot of financial stress and anxiety.

 A 2018 FINRA study revealed that financial capability, stability, and confidence aren’t improving and this is impacting the younger ones more as the study revealed that those within the ages of 18 to 34 struggling and seriously anxious about their financial situation.

Controlled spending, financial mindfulness and counselling would go a long way in helping people to handle their financial anxiety especially in the face of current global realities.

No. 5: Two in three families lack an emergency fund.

A study by JPMorgan Chase shows that majority of families in America don’t have enough money saved to help them cushion any form of emergency.

If things go shaky, about two-thirds of American families would struggle to come up with the equivalent of six weeks’ savings which puts a higher number of families at risk of bankruptcy.

Anyone who doesn’t want to be at the mercy of things should   find ways to quickly shore up emergency savings.

No. 6. Four in five American adults will experience difficulties purchasing their own home.

Homeownership is one of the much talked about American Dream. But this will remain a dream for many Americans as they would experience some forms of barrier to it..

Some of the major barrier to homeownership are…

Debt burden and Poor Credit score

Lack of down savings to meet up with down payment.

Escalating prices of assets

7. Due to Lack Of Financial Literacy, three in five adults don’t keep a budget

A budget is a financial plan that guides your financial decisions and choices. This could be for long- or short-term basis.

Keeping a budget is a key behavior of those who are financially literate.  But many Americans fail at this.

 A 2019 survey revealed that three in five U.S. adults reported that they do not have a budget.

These adults make money and spend it without planning any bit of the process.  This explains why many people cannot give an accurate account of where their money goes and why they live paycheck to paycheck.

Bottom line

From the Data, we can see that a lot of Americans with financial literacy. This calls for a serious reorientation and self-responsibility.