It hardly seems we need another reminder that Americans aren’t as financially literate – or prepared – as we might hope. But how would you do on a financial literacy test?
FINRA’s National Financial Capability Study (NFCS) finds that fewer Americans find it difficult to cover their expenses and pay their bills, and more are satisfied with their overall financial condition. More (46%) have (or say they have) set aside three months’ worth of living expenses in case of an emergency than did so in 2012 (40%).
However, fewer than 4 out of 10 (39%) report having ever tried to figure out how much they need to save for retirement – and, perhaps as a result, more than half worry about running out of money in retirement.
Those who save are more likely to be satisfied with their personal finances than those who spend more than their income (albeit only by a gap of 40% to 21%). Just two-fifths of survey respondents report spending less than their income, while a nearly equal number (38%) spend about equal to their income, and 18% spend more than they make – percentages that haven’t changed meaningfully since 2009.
That said, a greater emphasis on financial literacy is frequently touted as a much-needed assist in helping Americans do a better job of managing their finances.
And the FINRA Investor Education Foundation has put together a handy Financial Literacy Quiz where you can gauge your financial knowledge. Take the quiz and compare your score with the averages in specific states, regions or the nation overall. And maybe share it with others. The short quiz is online at http://www.usfinancialcapability.org/quiz.php.
