FINRA Foundation Releases State-by-State Financial Knowledge Findings
Findings are Part of the National Financial Capability Study to be Published in July
WASHINGTON—The FINRA Investor Education Foundation (FINRA Foundation) released today preliminary findings from the National Financial Capability Study, which will be published in July. The FINRA Foundation is previewing the data this month—National Financial Capability Month—to provide insight into the overall financial knowledge of adults in the U.S. and per state.
As part of the study, more than 25,500 adults in the U.S. were asked seven questions in a Financial Knowledge Quiz covering aspects of economics and finance encountered in everyday life. The findings indicate wide differences in financial knowledge across the country, but Americans’ overall knowledge about inflation has increased.
Financial Knowledge State-by-State Findings
In the top-ranking states, more than a third of the respondents answered five or more of the seven questions correctly, compared to fewer than 20 percent for the lowest-ranking states.
| Financial Knowledge: Top 10 States | ||
|---|---|---|
| Ranking | States | Percentage of Survey Respondents That Correctly Answered Five or More Financial Knowledge Questions |
| 1 | Minnesota | 34.78% |
| 2 | Wisconsin | 34.46% |
| 3 | District of Columbia | 34.41% |
| 4 | Colorado | 33.89% |
| 5 | Wyoming | 33.85% |
| 6 | Washington | 32.54% |
| 7 | Vermont | 32.34% |
| 8 | North Dakota | 32.00% |
| 9 | Oregon | 31.86% |
| 10 | Kansas | 31.44% |
| Source: Findings from FINRA Foundation's National Financial Capability Study | ||
Overall, 27 percent of the survey respondents correctly answered at least five of the seven financial knowledge questions, on par with 28 percent in 2021, the most recent years the study was conducted.
Data on all 50 states and the District of Columbia is available here.
Understanding of Inflation Has Increased
The respondents’ knowledge about inflation has increased from 2021 to 2024. One of seven questions in the Financial Knowledge Quiz, the inflation question asked respondents:
“Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
- More than today
- Exactly the same
- Less than today
- Don’t know”
"Overall, the findings show that knowledge of everyday financial concepts remains a challenge for many Americans. The wide disparities in financial knowledge across states demonstrate that more work is required to empower all Americans with the skills and tools to make informed financial decisions and safeguard their investments,” said Gerri Walsh, President of the FINRA Foundation. "The increase in the number of respondents who correctly answered the question about the impact of inflation on savings is an encouraging sign, likely reflecting the impact of lived experience as well as increased focus on the topic. However, continued efforts are needed to ensure all Americans fully understand the effects of economic factors on their personal finances."
The National Financial Capability study will also include findings about financial wellbeing, income volatility, financial advice from artificial intelligence, home ownership, credit card usage, investing in taxable accounts, retirement savings and ownership of cryptocurrencies, to name a few.
About the National Financial Capability Study
In 2009, the FINRA Investor Education Foundation launched the first national study of financial capability of adults in the United States. Since its start, the National Financial Capability Study has provided data on multiple indicators of capability—including financial behaviors, attitudes and knowledge.
National Financial Capability Study survey data is collected every three years. The 2024 survey, conducted from June through October, represents the sixth wave of data. Each wave of the study has data from more than 25,500 U.S. adults across all 50 states and Washington D.C. (500 per state/D.C.), and findings can be reported at both the state and national level. This extensive body of data is available for free to the public and academics.
More information about the National Financial Capability Study, including reports and data from previous waves of the NFCS and interactive data visualizations, can be found here.
About the FINRA Investor Education Foundation
The FINRA Investor Education Foundation supports innovative research and educational projects that empower Americans with the knowledge, skills and tools to make sound financial decisions throughout their lives. For more information about FINRA Foundation research and education initiatives, visit finrafoundation.org.
About FINRA
FINRA is a not-for-profit organization dedicated to investor protection and market integrity. FINRA regulates one critical part of the securities industry—member brokerage firms doing business in the U.S. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.