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Financial Literacy Quiz: How Much Do You Know?
Financial Literacy Quiz: How Much Do You Know About Money?
Test your understanding of financial concepts, and find resources to build your knowledge.
What is financial literacy?
Financial literacy is understanding financial concepts such as budgeting, saving and investing. It’s also being able to use that knowledge to make informed decisions about money. It can include recognizing how economic conditions, such as inflation, affect finances. Financial literacy also means knowing where to turn when you don’t understand something about money, Samantha Mockford, a certified financial planner with San Francisco-based firm Citrine Capital, said in an email interview. That might involve finding someone who can explain a concept without using jargon, she said. Or it could mean searching for answers online and evaluating whether a source is reputable.Take the financial literacy quiz
So, how much do you know about personal finance?Why does financial literacy matter?
Arming yourself with financial knowledge gives you the skills to manage your money, prepare for the future and adapt to changes. A lack of financial literacy can lead to mistakes and missed opportunities. That can have real consequences for your money — and your life. “As humans, we tend to avoid things we don’t understand,” Carla Adams, a CFP in Lake Orion, Michigan, said in an email interview. “If you don’t understand investing, you’re much less likely to invest. And not investing means missing out on significant long-term growth that can literally be the difference between being able to retire in your 60s, or earlier, versus not at all.” Not having a financial education can leave you more vulnerable to money scams, debt traps or coming up short when an unexpected expense hits. Or, it could simply mean you aren’t making the most of your money.What are the knowledge gaps?
Financial literacy is becoming a more regular focus beyond Financial Literacy Month in April, especially in youth education. Currently, 39 states require students to complete a personal financial course to graduate high school, according to the 2026 Survey of the States from the Council for Economic Education, a nonprofit focused on improving financial and economic education for K-12 students. That’s four more states than in 2024, when the previous survey was conducted. Still, financial literacy remains a challenge for many people. Financial planners say understanding taxes and equity compensation are among the biggest gaps they see with young professionals. Strong emotions and misconceptions often get in the way of learning. “The biggest hindrance I see to financial literacy is shame,” Mockford said. “It's OK and common to be ignorant, but if we are too ashamed to admit ignorance and ask questions, then we will stay ignorant.” “Adults too often think, ‘I should know this by now’ and learn through costly trial and error instead of asking the people around them.” Adams adds that money can feel like a taboo topic because many people don’t learn about it at home. “And even well-intentioned parents often don’t feel confident enough to teach it," she said. In fact, nearly three-quarters of Americans (74%) say they weren’t taught to save money as a child by their parents, according to a NerdWallet survey. Another barrier is the mindset that financial knowledge is for the wealthy, Patrick Yaghoobians, a CFP in Los Angeles, said in an email interview. "I have heard many people say, 'When I have money, I'll start to focus on my finances.' But the reality is, we don't have to wait to start.”Meet MoneyNerd, your weekly news decoder
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.