Americans lose about $1,000 a year due to lack of financial literacy

your lack Master dollars and cents The cost may be higher than you think.

A survey of 1,200 people by the National Council of Financial Educators found that the average American adult believes they lose $948 a year because they lack Knowledge About personal finance (so-called “financial literacy”). Since the average person loses hundreds of people every year, it takes better financial education The council’s chief executive, Vince Shorb, said the situation was serious.

“Americans today need financial education more than ever,” Schaub said in a release. “Financial illiteracy has become an epidemic in this country. We need comprehensive financial education starting early in childhood so that all Americans have the knowledge they need to make financial decisions in a changing economic world. Our future depends on it.”

The National Council on Financial Education estimates that the collective loss due to a lack of financial literacy exceeds $245 billion.

Thousands were lost

The council’s survey gave respondents six ranges to choose from when asked how much they thought they were losing each year due to a lack of financial education.

About 51.4% of respondents said they lost between $0 and $499 per year. About 10% of respondents said they were losing between $2,500 and $9,999 per year, and about 5% said they believed they were losing $10,000 or more per year.

knowledge is power

On the positive side, the survey found that the share of people who believe they lose $10,000 a year fell from 5% in the 2024 survey to 4.3% this year. The proportion of participants who believed they lost $499 or less per year increased from 49.8% to 51.4%.

Additionally, surveys conducted annually by the committee since 2019 indicate that consumers’ financial literacy may be improving. Since 2022, the average amount lost by substandard financial education has declined every year.

This year’s average loss is the lowest in the survey’s history, nearly half of 2022 and more than $300 lower than the survey’s first year.