Where does US rank in financial literacy?
The US ranks 14th in financial literacy.
Only 57% of adults in the United States are financially literate. Missouri, Utah and Virginia boast the best financial literacy rates, while Alaska, Washington, D.C. and South Dakota have the worst financial literacy rates.
Top 10 countries championing financial literacy worldwide. According to a survey by the Standard & Poor's Ratings Services Global Survey, Denmark, Norway, and Sweden rank the highest on the list of the most financially literate countries.
| Overall Rank | State | Total Score |
|---|---|---|
| 1 | Minnesota | 72.46 |
| 2 | Nebraska | 69.10 |
| 3 | Virginia | 68.44 |
| 4 | Colorado | 68.28 |
Nationwide, on average, 79% of U.S. adults are literate in 2022. 21% of adults in the US are illiterate in 2022. 54% of adults have a literacy below sixth-grade level. 21% of Americans 18 and older are illiterate in 2022.
That survey finds that only 33% of adults around the world are financially literate, and that 57% of adults in the U.S. are financially literate. While the U.S. does outdo the worldwide average, it lags behind several other OECD countries, too.
New Hampshire has the highest literacy rate in the US, with a rate of 88.5%. This means that nearly 90% of the population over age 25 can read and write at least a basic level.
Updated (3/07/24): How many states require students to take a personal finance course before graduating from high school? Updated (03/07/24): 25 states guarantee their students will take a standalone personal finance course of at least one semester before graduation.
America's lack of personal finance education is undeniable: Only 17% of U.S. adults said they took a personal finance class in high school.
| State | Score | Rank |
|---|---|---|
| New Hampshire | 79.9% | 1 |
| Virginia | 79.7% | 2 |
| Nebraska | 78.6% | 3 |
| North Carolina | 76.0% | 4 |
Which country has the most financial freedom?
Singapore led the Index of Economic Freedom in 2023, with an index score of 83.9 out of 100. Switzerland, Ireland, Taiwan, and New Zealand rounded out the top five.
- According to recent data, New Mexico has the lowest literacy rate among US states, with only 70.9% of its adult population having basic or below basic literacy skills.
- California has the second lowest literacy rate in the US, with 71.6% of its adult population having basic or below basic literacy skills.
On the other end of the spectrum, South Asia is home to countries with some of the lowest financial literacy scores, where only a quarter of adults—or fewer—are financially literate.
Literacy Rates by Country
There are nine countries in the world that have a 100% literacy rate: Andorra, Finland, Greenland, Liechtenstein, Luxembourg, Norway, Ukraine, Uzbekistan, and North Korea.
| Country | Literacy Rate | Male Literacy Rate |
|---|---|---|
| Hungary | 99% | 99.1% |
| Serbia | 99% | 99.9% |
| Turkmenistan | 99% | 99.8% |
| Croatia | 99% | 99.7% |
Biennial testing through NAEP consistently shows that two thirds of U.S. children are unable to read with proficiency. An astounding 40 percent are essentially nonreaders.
Four in five U.S. adults (79 percent) have English literacy skills sufficient to complete tasks that require comparing and contrasting information, paraphrasing, or making low-level inferences—literacy skills at level 2 or above in PIAAC (OECD 2013).
Financial Illiteracy: Statistics Overview. Only 33% of adults worldwide are financially literate, meaning 3.5 billion adults globally lack understanding of basic financial concepts, suggesting deep disparities in financial knowledge around the world.
Exactly, Financial literacy is a valuable skill that enables individuals to navigate the complexities of the modern economy, make informed decisions, and contribute to their own financial well-being as well as the overall economic stability.
On average, 79% of U.S. adults nationwide are literate in 2024. 21% of adults in the US are illiterate in 2024. 54% of adults have a literacy below a 6th-grade level (20% are below 5th-grade level).
What is the literacy rate of high school graduates in the US?
19% of high school graduates in the US can't read. 85% of juveniles in the US court system are functionally illiterate. 70% of inmates in the US prison system can't read above a 4th-grade level. 45 million adults in the US are functionally illiterate.
The Latest Japan Education Statistics Unveiled. As of 2021, Japan has an adult literacy rate of nearly 99%. In unfolding the rich tapestry of Japan's educational accomplishments, one cannot overlook the staggering 99% adult literacy rate, a testament of efficacy from their pedagogical perspective as of 2021.
A flurry of states now require financial literacy classes for high school students, covering topics like budgeting, saving and managing debt.
We don't have enough instructors to teach finance classes (see reason #1) Personal finance isn't part of the ACT or SAT – if it's not tested it's not taught. Education is up to the states, not the feds, and each state has different ideas. There isn't much agreement as to which finance concepts would be taught.
Right now, more than half the states require schools to offer personal finance in high school. But not all of those states require students to actually take a personal finance course to graduate. Don't worry—we've broken it all down for you in the chart below.
