Place/Date: - August 18th, 2022 at 2:53 pm UTC · 4 min read
Contact: Money Masters, Source: Money Masters
The Money Masters free phone app (App Store / Google Play) and online platform were created with the goal of increasing financial literacy across the board so that everyone – no matter their age, ethnicity, or income level – has the opportunity to make smart financial decisions to improve their lives. Money Masters recently partnered with insights and analytics company, Ipsos, to examine financial literacy in the U.S. The study has revealed that more than a third of American adults are financially illiterate.
Financial education company Money Masters commissioned Ipsos to conduct a study to uncover the truth about financial literacy among American adults. The results are troubling. Not only are there more than 100 million financially illiterate adults in the U.S., but there is also a sizable group that overestimates their financial abilities. In fact, around one in four people considered themselves financially literate but were instead found to be illiterate when tested. This means that millions of Americans are overconfident about their level of financial literacy.
The recent poll, conducted by insights and analytics company Ipsos on behalf of Money Masters, has discovered that a staggering 36% of American adults are considered financially illiterate based on incorrectly answering questions on financial concepts. The concepts covered include risk diversification, inflation, numeracy, and compounding interest.
The study also found demographic differences in levels of financial literacy according to age, household income, and education. An estimated four out of every ten Gen Xers and Millennials (37% and 41%, respectively) were found to be financially illiterate, while members of Gen Z trail even further behind at 58% financial illiteracy. Additionally, half of those with a household income of under $50,000 are financially illiterate. Conversely, only a quarter (26%) of Americans with a household income of $100,000 or more are financially illiterate, suggesting that there is a strong correlation between financial literacy and income level.
This study was conducted among a representative sample (of the U.S. population) of 4,018 adults aged 18 and over from the continental U.S., Alaska, and Hawaii. The poll has a credibility interval of plus or minus 1.8 percentage points for all respondents. The definition of financial literacy was based on the ability of participants to correctly answer three out of four concepts on fundamental personal finance and economics correctly. These questions and the definition of financially literate were derived from the S&P Global FitLit Survey.
According to Money Masters:
“This study has revealed a huge gap in financial education amongst the American public. [It has also revealed that] minorities have a higher risk of being financially illiterate. This is a problem on numerous levels, as clearly this critical information and knowledge is not being disseminated on the level it needs to be. Thankfully, today there are plenty of resources out there [such as Money Masters] that individuals can use to unlock their financial potential, which can go on to benefit them in all aspects of life.”
Money Masters has set out to address this pressing issue by providing a gamified education path that covers a range of financial topics such as personal finance, investing, and economics. The information is presented in bite-sized segments that simplify the complexities of finance and make learning fun. Users can learn at their own pace as they progress on a journey towards financial literacy. MONEY MASTERS also offers a fantasy stock market competition where theory meets practice with no risk to participants. All the content on the company’s app and website is free. There are plans to launch a premium subscription in the future, however, the fundamentals of finance will always be free.
Money Masters aims to partner with financial institutions and education institutions to amplify the message.
Ipsos is the world’s third largest Insights and Analytics company, present in 90 markets and employing more than 18,000 people.
Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions.
Founded in France in 1975, Ipsos has been listed on the Euronext Paris since July 1st, 1999. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD).
Money Masters is driven by its mission to create financial equality so that everyone – no matter their age, ethnicity, or income level – can confidently participate in the world of money.
In support of this goal, the Money Masters online platform, phone app, and plethora of informative articles and resources are available to everyone, providing 100% free access to all the fundamentals of personal finance.
Money Masters makes it easy for anyone to get started on their financial literacy journey.
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