The Financial Literacy Emergency of 2026

How WealthWave Leaders Can Measure the Crisis, Close the Gap, and Rewrite America’s Money Future

Financially, America feels like it’s straddling two different centuries at once. As we head into 2026, we carry supercomputers in our pockets capable of  solving complex problems and connecting us instantly to the world.

Yet, despite this incredible technological progress, most people still struggle to answer basic financial questions about concepts like interest rates, inflation, or managing risk.

The numbers clearly highlight a worrying gap between technological advancement and financial literacy, and they are far from encouraging.

This divide creates a critical opportunity for WealthWave leaders, who are committed to bridging it by educating and empowering people to take control of their financial futures.

The Scoreboard: America Keeps Failing Money Tests

Start with the TIAA Institute - GFLEC Personal Finance Index. In 2025, U.S. adults answered only 49% of its 28 questions correctly, the same level as 2017. The national score has basically flatlined for nine years.

This index is not testing Wall Street trivia. It covers 8 everyday areas of life: earning, consuming, saving, investing, borrowing, insuring, understanding risk, and knowing where to go for information. On that basic, real-life test:

• Only 48% of adults got more than half the questions right.
• Comprehending risk is the weakest area of all, at just 36% correct.
• Borrowing and debt management scores are highest at 59% correct, which only means people have learned the hard way.

Layer in another national measure. FINRA’s National Financial Capability Study uses a short 7-question quiz on inflation, interest, risk, and debt. In 2025, only 27% of Americans passed. The average score was 3.3 out of 7, roughly a 47% F.

Gerri Walsh of the FINRA Foundation summed it up bluntly: knowledge of everyday financial concepts is still “a challenge for many Americans.”

Here is the reality WealthWave leaders must face:

Most people are living important money years with pop-quiz level understanding.

That is not a minor gap. It is a crisis.

Who is Getting Left Behind

The P-Fin Index makes something else painfully clear: financial illiteracy is not spread evenly.

• Men average 53% correct. Women average 45%.
• Black and Hispanic adults average 38–39% correct, while White adults average 53% and Asian adults 55%.
• Gen Z scores only 38% right. Even baby boomers and the Silent Generation average just 55%.

In other words, the people who most need clarity are often the ones with the least access to it. And everyone starts adulthood far behind.

Annamaria Lusardi has said, “Financial literacy is a basic skill that all citizens should have.” We do not live in a country where that basic skill is universal. Not even close.

As a result, entire segments of the population are walking into the Great Wealth Transfer, rising debt, and volatile markets without a working playbook.

What Low Literacy Does to a Family’s Life

The P-Fin Index connects knowledge directly to outcomes. The differences are huge. Compared with adults who have very high financial literacy, those with very low literacy are:

• 2 times more likely to say debt keeps them from handling other priorities.
• 3 times more likely to be financially fragile and unable to find $2,000 in an emergency.
• 5 times more likely to have no idea if they even have one month of emergency savings.
• 8 times more likely to spend 20 or more hours every week dealing with money problems.

On average, Americans spend about 7 hours a week wrestling with financial issues. For those with very low literacy, it jumps to around 10 hours. That is more than a full workday every week lost to worry.

“When people don’t understand money, money becomes a full-time job. When they do, it becomes a tool.”

– Tom Mathews

This isn’t just about future retirement. It is about today’s stress, today’s arguments, today’s missed opportunities.

And when you look specifically at retirement knowledge, the story gets worse. On a 6-question “retirement fluency” quiz in the same P-Fin study, the average American got just 2.2 questions right. Only 23% understood the odds of needing long-term care in later life. Only 26% knew how much of retiree health costs Medicare really covers.

Yet workers who answered 5 or 6 questions correctly were far more likely to be saving and to have calculated how much they need. Among them, 85% save regularly for retirement and 63% have run the numbers, versus 48% and 23% among those who got none right.

Knowledge does not guarantee action, but over and over the data shows something simple:

Higher literacy, better decisions, better odds.

That is a message every WealthWave leader should have on the tip of their tongue.

Why The System Will Not Fix This for Your Clients

If literacy is so important, why are the numbers still so bad?

Because our institutions still treat money skills as “nice to have,” not “must have.”

The National Financial Educators Council’s Policy and Standards Framework is blunt: every U.S. state fails to mandate financial literacy at the same level of rigor as other core subjects.

A few highlights:

• The average high school student receives only about 18 hours of personal finance instruction over four years. That is far below what is needed for lasting impact.
• Only a handful of states require a true standalone personal finance course, and most of those are just a half-credit.
• Mandates usually ignore teacher training, curriculum quality, and real testing. A state can “check the box” with weak materials taught by unprepared teachers and still earn a good rating.
• Many laws are unfunded, which means schools scramble for free or low-grade resources instead of proven programs.

The NFEC also points out that financial literacy is the one subject that benefits 100% of students and affects every facet of their adult life, yet it still receives the least time and the weakest standards.

Homes and workplaces aren’t filling the gap either:

• Only about 19% of adults say they participated in any financial education offered by a school, college, or employer.
• Despite low quiz scores, 64% of Americans rate their own financial knowledge as “high,” and 71% say they are good at handling day-to-day money matters. Their confidence is much higher than their skill.

“Financial literacy is not taught at school, at home, or at work in any reliable way. If you want it, you have to go get it.”

– Tom Mathews

That is the mindset WealthWave must teach the public and model for our team.

Why Measurement is Our Unfair Advantage

We talk a lot about tools, events, and the 7 Money Milestones. Underneath all of that is one big idea:

What you measure, you can change. What you never measure, you tolerate.

The P-Fin Index, FINRA’s quiz, NFEC’s standards, and FINRA’s National Financial Capability Study all do the same thing: they try to turn ignorance into a number on a scorecard.

Just as these studies seek to quantify financial understanding (or lack thereof) across populations, WealthWave needed that same powerful ability to measure and articulate financial realities within every community it touches, empowering every team member, and strengthening every household. This means making the invisible financial knowledge gaps visible, thereby creating a clear pathway for improvement and growth.

WealthWave developed the Financial Literacy Quiz (FLQ) at TakeTheFLQ.com which will become the largest ongoing study of financial knowledge in America. This tool is designed to provide people with valuable insights:

• A clear snapshot of where they stand today

Think of health care. Blood pressure, cholesterol, A1C, weight. People may not love the numbers, but the numbers tell the truth. The FLQ and future Financial Literacy Index (FLI) will do the same for money.

“If you can’t measure literacy in your city, you can’t move it. Scoreboards create urgency. Urgency creates action.”

– Tom Mathews

As a leader, you are not just sharing content. You are building the scoreboard for your territory.

The Path Forward: What People Must Actually Do

Once you show people the state of financial illiteracy, you cannot leave them there. You have to show them the path out.

Here is the simple, repeatable path WealthWave leaders can champion in 2026.

1. Take the Financial Literacy Quiz

Invite every client, prospect, and teammate to start with the FLQ at TakeTheFLQ.com.

• Position it as their personal P-Fin Index.
• Encourage couples and families to take it together.
• Use the results to identify gaps in the 7 Money Milestones: debt, protection, emergency funds, retirement, and more.

When people see their own score, the national statistics stop being “interesting” and start being personal.

2. Read TheMoneyBooks series

Knowledge must be accessible or it will never spread.

TheMoneyBooks series was built to translate complex ideas into plain English, with simple graphics and stories that stick. When people see the Rule of 72, compound interest, and the time value of money laid out visually, the light comes on.

Link your FLQ conversations directly to specific chapters:

• Low savings and no emergency fund → the chapters on paying yourself first and building cash reserves.
• High debt and confusion about interest → the sections on how debt really works and how long it takes to double what you owe.
• No plan for retirement → the pages on tax-deferred accounts, employer matches, and lifetime income.

You are turning quiz results into a reading prescription.

3. Sit down with a trusted financial professional

Books and quizzes are essential, but they are not enough. People need a human guide.

The data proves that literacy and outcomes move together, especially for retirement readiness. Workers who understand the basics are far more likely to save consistently and to calculate their needs.

A WealthWave financial professional can:

• Translate FLQ results into a customized 7 Money Milestones game plan
• Explain employer plans, protection strategies, and tax advantages in plain language
• Help clients avoid the traps that statistics silently warn about: no emergency fund, high-interest debt, and underfunded retirement

Make it clear that education plus action is the formula. Knowledge without decisions is just trivia.

4. Re-test and celebrate progress

Measurement should not be a one-time embarrassment. It should be a celebration of growth.

Encourage people to:

• Retake the FLQ every 6 to 12 months
• Track how their score changes as they read, attend events, and work their plan
• Tie improvements to real wins: debt paid off, savings built, protection in place, retirement contributions rising

You can do the same with your team. Track:

• Number of FLQs completed
• Average score change after 12 months
• Households that have taken at least 3 of the 7 Money Milestones steps

This is how you prove that your business is not just doing production. It is changing literacy and lives.

What This Means for WealthWave Leaders in 2026

Look at the national picture again:

• Half the country can’t answer basic money questions.
• Young adults are entering the workforce with the weakest literacy and the strongest exposure to digital debt.
• Schools are underfunded, under-trained, and under-standardized when it comes to money education.

That is not bad news for WealthWave. It is the mission.

You are not competing with other financial firms. You are competing with confusion. You are competing with silence. You are competing with the idea that “I’ll figure it out later.”

“We’re not here to sell products. We’re here to sell understanding. When understanding shows up, the right products follow.”

– Tom Mathews

As leaders, your job in 2026 is to:

• Make the crisis visible with real data and real quizzes
• Offer a clear path: FLQ, TheMoneyBooks, a trusted pro, a written plan
• Build local and team scoreboards so you can prove change, not just claim it
• Equip the next generation of educators inside your organization to teach confidently and constantly

Nelson Mandela said, “Education is the most powerful weapon which you can use to change the world.” In money terms, education is the weapon that disarms debt, dismantles fear, and opens doors that have been locked for generations.

Call to Action

Here then is the profound challenge laid before each of us. Make a conscious decision, a firm resolve, that within your sphere of influence – in your city, with your team, and across the span of your lifetime – the critical financial literacy score will unequivocally improve. This isn't about theoretical aspirations; it's about demonstrable progress, reflected clearly in measurable numbers and tangible outcomes.

To achieve this, we must:

• Commit that every client and prospect takes the FLQ. This isn't just a survey; it's the crucial first step to identifying knowledge gaps and establishing a baseline for growth. Understanding where individuals stand financially is paramount to guiding them effectively.
• Commit to putting TheMoneyBooks in every set of hands you can reach. These resources are designed to demystify complex financial concepts, providing accessible and foundational knowledge that empowers individuals to take control of their financial destinies.
• Commit to thousands of families sitting down with a WealthWave educator to map their 7 Money Milestones. This personalized, one-on-one guidance transforms abstract concepts into actionable strategies, helping families navigate their financial journey with clarity and confidence.
• Commit to tracking results diligently so you can stand on a stage and show the undeniable before-and-after of literacy in your part of the country. Documenting this impact provides powerful validation, inspires others, and serves as concrete proof of the transformative power of financial education.

If America continues on its current trajectory, we are destined to remain stagnant, with approximately 49% of the population still struggling with basic money questions a decade from now. If we, as WealthWave leaders, accept this grim forecast, then indeed, nothing will change. The cycle of confusion and financial struggle will persist.

However, if we collectively refuse to accept this outcome, if we choose to actively challenge the status quo, then everything can fundamentally change. The potential for widespread financial empowerment is within our grasp.

As Tom Mathews states on the wall of the Wall Street Boardroom, “When people understand money, they can change their future.”

In 2026, let us make this more than just an inspiring quote; let us make it the very essence of our scoreboard, a reflection of the lives we've impacted and the futures we've helped secure.