A long running study from the FINRA Investor Education Foundation and the GFLEC (Global Financial Literacy Excellence Center) into financial anxiety and stress among U.S. households was just updated in April 2021 with the results of focus groups conducted in December 2020. Read More: Understanding the Financial Capability of Americans.
The National Financial Capability Study (NFCS) is conducted every three years by the FINRA Investor Education Foundation, started in 2009 and last conducted in 2018, providing insights into various financial literacy characteristics.
Their bottom line: financial literacy seems to matter, correlating with lower levels of stress and anxiety and those who are more financially anxious and stressed are less likely to plan for retirement. They measure financial literacy using the “Big 3” financial literacy questions to assess basic understanding of interest rates, inflation and risk diversification. Read More: The Big Three and the Big Five.
Having served more than 80,000 students with lifelong trading and investing education over more than two decades, this aligns with our experience of helping people acquire the knowledge and skills they need, aligned with their short term and long term financial goals.
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