Americans rank near the bottom in global financial literacy study

The knowledge that Americans have about some basic aspects of finance lags many other countries, according to a new study.

The United States ranked 25th out of 27 countries in the financial literacy study published by digital financial services company Remitly, raising fresh questions about the persistent knowledge gap means for American investors.

The study, surveyed more than 5,000 respondents and tested knowledge across six areas: interest rates, compound interest, inflation, currency conversion, investing, and cryptocurrency. It used a framework derived from the World Bank's definition of financial literacy, covering knowledge, skills, attitudes, and behaviors required for sound financial decision-making.

American respondents answered an average of 72% of questions correctly; below the global average and well behind top-ranked Czech Republic, where participants answered 90.9% of questions correctly.

Currency conversion proved to be the sharpest weakness for Americans: only 56.2% answered those questions correctly. Financial pressure also looms large in the data with 41.2% of US respondents stating they often worry about money, and 46.1% admitted to borrowing or using credit to cover everyday living costs within the past 12 months.

For advisors, the scale of financial illiteracy across the country has long been understood as both a challenge and an opportunity. Clients who lack foundational knowledge about compound interest or inflation are harder to serve and more prone to making decisions that undercut their long-term financial plans.

School blamed, self-education rising

The Remitly study identified a near-universal sentiment across all 27 countries surveyed: people feel let down by the financial education they received in school.

Overall, 70.5% of respondents said their schooling did not equip them to manage money confidently as adults. In the US, that dissatisfaction is consistent with a broader pattern; most states have historically not required a standalone personal finance course to graduate from high school, though that is beginning to change in several states.

As a result, self-directed education is filling the void. The study found that 82.9% of respondents globally describe themselves as self-taught when it comes to financial knowledge, primarily through online resources.

More than half (51.7%) have used an AI tool such as ChatGPT for financial questions in the past year, which is concerning given recent research revealing that AI chatbots give the wrong financial answers most of the time.

"What stands out the most in this study is how universal the financial education gap is," said Martyn Saville, global consumer protection manager at Remitly. "Around 70% of people say school didn't give them enough knowledge to manage their money, from everyday budgeting to bigger decisions like mortgages and investing. These are skills for life."

Saville cautioned that the rise of so-called "finfluencers" on social media carries its own risks for consumers seeking informal financial guidance, noting that influencer endorsements of financial products do not necessarily reflect suitability or quality. A 2026 Finra study found that finfluencer followers and social media users face elevated fraud risk.

An overwhelming 93.6% of respondents across all countries told the Remitly survey that they believe financial education should be mandatory for school-age children.

Where the US stands globally

Europe dominated the top of the rankings. The Netherlands placed second at 86.1%, followed by Norway at 84.3%, Finland at 82.6%, and Austria at 82.0%. Outside Europe, Australia ranked 11th with 79.5%. Canada placed 22nd with 75.5%. The US, at 25th, fell below Mexico (74.0%) and was outranked by every European and Asia-Pacific country included in the study.

The bottom two spots went to the UAE (70.8%) and South Africa (69.4%).

With nearly half of Americans reporting that credit has become a regular tool for covering day-to-day costs, the practical stakes for improving that baseline literacy are substantial, both for individual households and for the advisors tasked with helping them plan ahead.

The full study is available at remitly.com.