A new global study on financial literacy places the United States near the bottom of the developed world, even as it commands the largest economy. The report, published by digital financial services firm Remitly, ranked the U.S. 25th out of 27 countries, with American respondents answering an average of 72% of questions correctly—below the global average and far behind the top-ranked Czech Republic, which scored 90.9%.
The study surveyed more than 5,000 adults across 27 countries, testing knowledge in six areas: interest rates, compound interest, inflation, currency conversion, investing, and cryptocurrency. The framework was derived from the World Bank's definition of financial literacy, which encompasses the knowledge, skills, attitudes, and behaviors needed for sound financial decision-making.
Currency conversion proved to be the sharpest weakness for U.S. respondents, with only 56.2% answering those questions correctly. The data also reveals significant financial strain: 41.2% of Americans said they often worry about money, and 46.1% admitted to borrowing or using credit to cover everyday living costs within the past 12 months. For financial advisors, these figures underscore the challenge of serving clients who may lack foundational knowledge about compound interest or inflation—knowledge that is critical to long-term planning.
Schooling blamed, self-education rises
The Remitly study identified a near-universal sentiment across all 27 countries: people feel let down by the financial education they received in school. Overall, 70.5% of respondents said their schooling did not equip them to manage money confidently as adults. In the U.S., this dissatisfaction aligns with a broader pattern—most states have historically not required a standalone personal finance course to graduate from high school, though that is beginning to change in several states.
As a result, self-directed education is filling the void. The study found that 82.9% of respondents globally describe themselves as self-taught when it comes to financial knowledge, primarily through online resources. More than half (51.7%) have used an AI tool such as ChatGPT for financial questions in the past year—a trend that raises concerns given recent research showing AI chatbots often provide incorrect financial answers.
“What stands out the most in this study is how universal the financial education gap is,” said Martyn Saville, global consumer protection manager at Remitly. “Around 70% of people say school didn't give them enough knowledge to manage their money, from everyday budgeting to bigger decisions like mortgages and investing. These are skills for life.” An overwhelming 93.6% of respondents across all countries told the Remitly survey that they believe financial education should be mandatory for school-age children.
Where the U.S. stands globally
Europe dominated the top of the rankings. The Netherlands placed second at 86.1%, followed by Norway at 84.3%, Finland at 82.6%, and Austria at 82.0%. Outside Europe, Australia ranked 11th with 79.5%. Canada placed 22nd with 75.5%. The U.S., at 25th, fell below Mexico (74.0%) and was outranked by every European and Asia-Pacific country included in the study. The bottom two spots went to the UAE (70.8%) and South Africa (69.4%).
With nearly half of Americans reporting that credit has become a regular tool for covering day-to-day costs, the practical stakes for improving baseline literacy are substantial—both for individual households and for the advisors tasked with helping them plan ahead. The findings echo other recent surveys, such as a Prudential survey showing 86% of older Americans fear spending retirement savings, and a Guardian study highlighting the collision between retirement optimism and weak financial health. Advisors may also see parallels in the SoFi survey showing Gen Z and millennials doubt retirement despite ambition.
For advisors, the scale of financial illiteracy across the country has long been understood as both a challenge and an opportunity. Clients who lack foundational knowledge about compound interest or inflation are harder to serve and more prone to making decisions that undercut their long-term financial plans. The Remitly study suggests that the gap is not just a U.S. problem, but it is particularly acute in a nation that leads the world in wealth creation yet struggles with basic money skills.
