Financial literacy, wellness and resilience among African Americans: African American financial literacy

New insights from the Personal Finance (P-Fin) Index

Financial literacy is low among many U.S. adults, including African Americans. On average, African American adults answered 38% of the P-Fin Index questions correctly. Only 28% answered over one-half of index questions correctly, with 5% answering over 75% correctly (Figure 1).

Personal finance knowledge among African Americans tends to be lower than that of whites. On average, white adults answered 55% of the P-Fin Index questions correctly (Figure 2). Sixty-two percent of whites answered over one-half of the index questions correctly, with 22% answering over 75% correctly (Figure 3). One-third of African Americans demonstrated a relatively low level of financial literacy, i.e., they answered 25% or less of the index questions correctly, compared with 16% of whites.