Can You Beat the National Average?

Admin 7 min read

The TIAA Institute and GFLEC have tracked American financial knowledge every year for the past decade with the same 28-question survey. In 2026, on the 10th anniversary of the TIAA Institute–GFLEC Personal Finance Index, they introduced something new: the P-Fin 8. It’s an eight-question financial literacy quiz that’s designed to mirror the full test.

Researchers ran a statistical analysis of all 28 questions across eight domains and selected a single question from each domain that best predicts overall score. The short quiz tracks the full exam almost perfectly, capturing the same picture. The national average on the P-Fin 8 was 46% correct, while the full 28-question exam averaged 47%.

The annual P-Fin Index found that financial literacy in America is at a 10-year low. Take the quiz below and see where you land.

Take the 8-Question Financial Literacy Quiz Before You See the Answers

The P-Fin 8 includes one question from each of eight financial knowledge domains: earning, consuming, saving, investing, borrowing, insuring, comprehending risk, and finding reliable guidance. Read each question and commit to an answer before you scroll to the results.

Question 1 — Earning

Mark’s salary has increased over the past two years. What would be a plausible reason for this?

A. The number of workers with Mark’s skills increased where he lives and works

B. New technology reduced the demand for workers with Mark’s skills

C. Mark completed several training courses at a local college

Question 2 — Consuming

A household budget cannot be used for which of the following?

A. To track household financial assets

B. To plan for necessary household expenses

C. To plan household discretionary spending

Question 3 — Saving

Akiko has $1,000 in savings that earns a 2% rate of return over the course of the year. The inflation rate during the year is 3%. Which statement is true?

A. She can afford to buy fewer things at the end of the year

B. She can afford to buy more things at the end of the year

C. It’s not clear whether she can afford to buy more things or fewer things at the end of the year

Question 4 — Investing

Which statement about investing is correct?

A. Investing in the stock of a single company is typically safer than investing in a mutual fund that holds shares of many companies in multiple industries

B. Investing in a mutual fund that holds shares of many companies in multiple industries is typically safer than investing in the stock of a single company

C. Investing in the stock of a single company and investing in a mutual fund that holds shares of many companies in multiple industries are typically equally safe

Question 5 — Borrowing

José owes $1,000 on a loan that has an interest rate of 20% per year compounded annually. If he makes no payments on the loan, how many years will it take for the amount he owes to double?

A. Less than 5 years

B. 5 to 10 years

C. More than 10 years

Question 6 — Insuring

Katherine is a single 25-year-old worker who is in good health. What type of insurance coverage is she most likely to need in the near term?

A. Life insurance

B. Disability insurance

C. Long-term care insurance

Question 7 — Comprehending Risk

Lottery A pays a prize of $200 and the chance of winning is 5%. Lottery B pays a prize of $90,000 and the chance of winning is 0.01%. Expected winnings are greater in which lottery?

A. Lottery A

B. Lottery B

C. They are equal

Question 8 — Finding Reliable Guidance

Which of the following appears to be inappropriate investment advice for the respective individual?

A. A stock index fund to a 30-year-old worker saving for retirement

B. A bond fund to a 60-year-old worker for some of her retirement savings

C. A stock fund that invests in small start-up businesses to a 75-year-old retiree

Ready to check your answers? Scroll down.

How Did Americans Score on Each of the Eight Questions?

Six in 10 Americans answered four or fewer questions on this financial literacy quiz. One in three couldn’t get past two right answers. Only 15% scored seven or eight out of eight.

Financial Literacy Tier	Percentage Score Bracket	Questions Answered Correctly	Share of U.S. Adults
Very Strong Knowledge	76% to 100%	7 to 8 questions	15%
Strong/Intermediate Literacy	51% to 75%	5 to 6 questions	24%
Basic/Novice Literacy	26% to 50%	3 to 4 questions	24%
Very Low Financial Literacy	Less than 26%	2 or fewer questions	36%

Source: TIAA Institute–GFLEC Personal Finance Index (2026). Note: Percentages sum to 99% due to rounding in the original report dataset.

Question	Domain	Correct Answer	National Score
Mark’s salary increase	Earning	C — Training courses built his skills and earning potential	56%
Household budget limits	Consuming	A — Budgets plan spending; they don’t track financial assets	49%
Akiko’s purchasing power	Saving	A — Inflation outruns her 2% return; she buys less	48%
Mutual fund vs. single stock	Investing	B — A diversified fund is safer than a single stock	54%
José’s debt doubling time	Borrowing	A — Less than 5 years	40%
Katherine’s coverage need	Insuring	B — Disability insurance	27%
Lottery expected value	Comprehending Risk	A — Lottery A ($10 expected value) beats Lottery B ($9)	46%
Investment advice mismatch	Finding Reliable Guidance	C — Start-up stocks are inappropriate for a 75-year-old retiree	46%

Source: 2026 TIAA Institute-GFLEC Personal Finance Index.

These two questions are worth a closer look:

Question 5 — Borrowing

At 20% annual compound interest, a $1,000 debt doubles in about 4 years. Not 5 to 10. Most respondents picked the middle range or said they didn’t know. Credit cards often carry 20% interest or higher. Misreading that math by even a few years has a real dollar cost.

Question 6 — Insuring

Disability insurance was the right answer, but most respondents chose life insurance for a 25-year-old with no dependents, or long-term care for someone decades away from needing it. A young, healthy single worker’s biggest financial risk is an illness or injury that stops her income. That’s what disability insurance covers.

Only 27% Got the Insurance Question Right

Insurance literacy scores low on both the P-Fin 8 and the full 28-question index. The pattern persists because insurance knowledge isn’t something you absorb through daily financial habits. Coverage rules, policy types, and pricing require active learning.

The three insurance types in Question 6 cover different phases of financial life. Disability insurance protects your income while you’re working. Long-term care insurance protects your savings in retirement. Medicare covers healthcare costs in retirement, but with gaps most people don’t discover until a bill arrives.

Knowing which coverage matters at which stage is its own financial skill.

Gen Z Averaged 38% Correct, the Lowest Score of Any Generation

The P-Fin 8 reproduces the generational gap documented in the full 28-question study. Gen Z averaged 38% correct. Baby boomers averaged 52%. The national average is 46%.

Generation	P-Fin 8 Average	Answered 2 or Fewer Correctly
Baby Boomers	52%	27%
Gen X	47%	35%
Millennials	45%	38%
Silent Generation	44%	37%
Gen Z	38%	48%

Source: 2026 TIAA Institute-GFLEC Personal Finance Index.

Almost half of Gen Z respondents answered two or fewer questions correctly. Financial decisions made at that age, under weak knowledge, shape the savings path for decades.

Baby boomers lead every generation, but 27% of them still answered two or fewer correctly. Decades with a 401(k) and a mortgage build real knowledge. They don’t close every gap.

Men averaged 49% on the P-Fin 8. Women averaged 42%. That seven-point difference held across all generations.

If you’re helping adult children navigate these topics, insurance literacy is where the age gap runs widest. Starting those conversations now can close some of that distance.

The Weakest Quiz Domains Also Carry the Biggest Retirement Stakes

Every domain the P-Fin 8 covers connects to a decision you’ll face before or in retirement. Getting insurance wrong costs money at the moment you can least afford to fix it. Misreading risk or inflation tends to compound the problem over time.

Insurance and risk comprehension score the lowest on the P-Fin 8. They’re also where retirement choices carry the least margin for error. Social Security timing, Medicare enrollment windows, and portfolio withdrawal sequencing are all in that territory.

A retirement plan doesn’t require perfect scores. The Boldin Planner lets you model your specific numbers and test decisions before they’re permanent. Knowledge gaps cost less when there’s a structure for catching them.