Financial well-being and literacy in the midst of a pandemic
COVID-19 has underlined the importance of possessing financial knowledge and skills—and having a financial cushion to weather the unexpected.
Fielded in the midst of the pandemic, the 2021 TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) provides critical insights into the state of Americans’ personal finances during a time of extended national and global stress. With a core set of questions that assess financial literacy, the P-Fin Index also gauges financial wellbeing in ways that transcend unemployment levels, furloughs and changes in income, including data that allows for comparisons across socio-demographic segments of the population.
- 26% of U.S. adults are dissatisfied with their current financial condition.
- 18% spend 10 hours or more per week on personal finance issues and problems.
- 22% cannot pay all their bills in full and on time in a typical month.
- 30% could not cope with an unexpected expense of $2,000 within a month's time.
- U.S. adults correctly answered only 50% of the P-Fin Index questions, on average; this figure was 37% and 41% among African Americans and Hispanics, respectively.