The Lack of Financial Literacy in America

Only 1 in 3 Americans can answer basic financial literacy questions correctly. The lack of financial knowledge about interest rate, inflation, and risk diversification affect our ability to make sound financial decisions, such as how much to borrow and save, and whether or not we should invest in a single stock or mutual funds.

I spoke with Dr. Annamaria Lusardi, the nation’s top expert on financial literacy. Dr. Lusardi is the University Professor of Economics and Accountancy at the George Washington University School of Business. She is the founder and academic director of the Global Financial Literacy Excellence Center. Her papers have been cited over 55,000 times, making her one of the most cited contemporary economists.