Financial Literacy Crisis Costing US Adults Nearly $950 Each: NFEC Survey Findings

Financial Literacy Crisis Costing U.S. Adults Nearly $950 Each

As the financial landscape in the United States continues to evolve, the importance of financial education becomes increasingly evident. The National Financial Educators Council (NFEC) recently conducted its annual survey, revealing that the financial knowledge gap among Americans is leading to significant economic losses. According to the 2025 survey data, the average American loses an astounding $948 each year due to insufficient personal finance knowledge.

The Survey Insights

In an effort to quantify the impact of financial illiteracy, the NFEC posed the question to 1,200 adults across the country: “During the past year (2025), about how much money do you think you lost because you lacked knowledge about personal finances?” The findings indicated a troubling trend; the average response was $948, demonstrating that many individuals are feeling the financial pinch as a result of their lack of financial education.

To put this into perspective, when extrapolated to the entire adult population in the U.S., based on census data showing approximately 260 million adult residents, the total financial losses due to poor personal finance skills rise to over $246 billion. This staggering figure illustrates the widespread nature of the problem and underscores the need for targeted financial education initiatives.

Among the respondents, 48.6% reported incurring losses exceeding $500, and alarmingly, 14.6% acknowledged losses surpassing $2,500. This data not only highlights the individual economic fallout but also reflects broader systemic issues pertaining to financial literacy.

Methodology Behind the Findings

The NFEC collaborated with Prodege, a prominent consumer insights firm, to conduct the survey using their Pollfish platform, focusing on specific demographic criteria to ensure a diverse sample. The methodology employed AI-driven screening processes to ensure robust data collection and high reliability of results.

Vince Shorb, CEO of the NFEC, emphasized the urgency of addressing this situation, stating, “Americans today need financial education more than ever before. Financial illiteracy has become an epidemic in this country. We need to start teaching comprehensive financial education to children early in life, so that all Americans have the knowledge they need to make the financial decisions they'll face in a changing economic world.”

Historical Context

The NFEC has been conducting this survey since 2017, and the trend indicated by the latest data is alarming. Previous surveys revealed financial losses of $1,819 in 2022, $1,506 in 2023, and $1,015 in 2024, all pointing towards a gradual increase in the financial costs associated with a lack of financial literacy. This trend calls for immediate action to enhance educational resources related to personal finance.

The urgency of improving financial literacy is underscored by concerning statistics on Americans' financial habits. For instance, recent reports have indicated that total credit card debt in the United States exceeded $1.13 trillion as of Q3 2024. Moreover, a report from the Federal Reserve in 2023 indicated that 31% of non-retired adults have no retirement savings, posing significant challenges for their financial future.

The Path Forward

The NFEC's mission is to promote greater financial health through education and advocacy. As a certified B Corporation, the NFEC engages with 26 state chapters to distribute financial wellness resources and empower individuals to improve their economic situations. The results of this survey serve as a clarion call for action, urging educators, policymakers, and financial institutions to prioritize financial literacy as a fundamental component of education systems across the country.

Addressing financial illiteracy is not just an individual concern; it is a societal imperative. As America grapples with financial challenges, investing in comprehensive financial education may very well be the key to unlocking a more financially secure future for all. The NFEC aims to bridge this knowledge gap, ensuring that all individuals can make informed decisions and navigate their financial landscapes confidently.

For further details on the survey results, visit the NFEC’s official website.