In anticipation of Financial Literacy Month, U.S. News surveyed 1,200 consumers, asking them about their spending habits and general financial knowledge. Compared with last year’s financial literacy survey, respondents were less likely to answer foundational questions correctly, suggesting a decline in financial literacy — despite high levels of self-reported confidence.
Consumers Are Confident…ly Wrong
When asked if they considered themselves knowledgeable when it comes to personal finances — such as savings, budgeting and managing credit — 51% of respondents say they consider themselves “very” knowledgeable and about 46% say they are “somewhat” knowledgeable.
Of the 51% who say they are “very knowledgeable” about personal finances:
— Almost 60% say carrying a balance boosts your credit score. (It does not.)
— About 44% don’t know the difference between a credit score and a credit report.
— About 43% say a credit score and report might combine with a partner’s after marriage.
Comparing 2025 to 2026, there’s been a dip in general financial knowledge among consumers.
In 2025, about 53% of consumers didn’t know their FICO score is what lenders look at to determine your creditworthiness. This year, that number climbed to 59%.
[Read: Best Credit Cards.]
Source of Misinformation
Perhaps what’s contributing to this increase in flawed knowledge is where consumers get their financial advice. About 44% go to friends and family for financial advice. Other popular avenues included online publications, content creators and books. And 31% acknowledge they don’t seek out financial advice at all. Of the 51% of respondents who say they are “very” knowledgeable about personal finance, 40% say they get their financial advice from friends and family and about 28% don’t seek out financial advice at all.
Financial Foundation
Most respondents got their first credit card after the age of 18, with about 49% getting their credit card in college or after high school and another 26% getting their first credit card after college.
Only a combined 25% were able to get a leg up with the help of a parent or guardian and were added as an authorized user before they applied for their first credit card.
What’s more, 40% of respondents maxed out that first credit card. Reasons ranged from needing to cover unexpected expenses to just being impulsive.
Why Did You Max Out Your First Credit Card?
— I had to cover an unexpected expense.
— I love to buy things.
— Cancer treatment.
— Because I had no control and a low limit.
— I was unemployed for a few months and used my card to get by.
— I didn’t know I had a limit.
— I wasn’t taught by my parents how to budget or save.
— To get a Playstation 2.
[SEE: Best Credit Cards to Build Credit]
Spending Habits and Trends
When it comes to tracking spending, about 33% rely on a budgeting app, while 29% admit to not tracking their spending. Notably, the less a consumer makes in annual income, the more likely they are to not track their spending.
I don’t track my spending:
— Under $20,000: 38%
— $20,001 to $50,000: 31%
— $50,001 to $70,000: 30%
— $70,001 to $90,000: 23%
— $90,0001 to $110,000: 23%
— Over $110,000: 28%
As for how much consumers have in emergency savings, the numbers remained mostly stagnant year over year. Consumers have not been able to increase their savings in the past year, much to the surprise of no one. Here’s a breakdown of much consumers have in emergency savings:
— Under $1,000: 36%
— $1,000-$5,000: 28%
— $5,001-$10,000: 14%
— Over $10,000: 22%
Separated out by race and ethnicity, there is some variance, which highlights the racial impact on generational wealth and financial knowledge.
Testing Consumer Knowledge
Another way consumer knowledge was tested was with a scenario question regarding AI scams. When asked if they received a phone call from a potential employer about a job offer and were told they needed to pay a fee for training or equipment:
— 16% say the would pay the fee because they need a job
— 49% would ask for more information before paying the fee
— Only 35% would refuse to pay the fee and look elsewhere for a job
It’s important to note that no legitimate company or employer would make a potential candidate pay for anything.
In addition, when separated out by age, U.S. News found that the younger the consumer, the more likely they were to overlook red flags of an AI scam because of their need for employment. This is a direct response to the current state of the job market and the prevalence of AI.
[Read: Rewards Credit Cards]
Credit Mistakes
Concerning credit mistakes they’ve made, consumers are optimistic, with 19% saying they haven’t made any. Here’s a breakdown of what consumers consider their single biggest credit mistake:
— Carrying too high of a balance: 19%
— Only making the minimum payment: 17%
— Paying the bill late: 15%
— Using too many credit cards: 15%
— Closing old credit cards: 8%
— Not checking my credit report: 7%
This latest survey reveals a concerning paradox: consumers’ self-reported confidence in their financial knowledge remains high while foundational financial literacy has declined. This highlights a critical need for financial education to help U.S. consumers build a more secure financial future and navigate an increasingly complex economic landscape.
This piece was edited by Emily Hayes and reviewed by Ray Frager.
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Survey: 59% of Consumers Don’t Know What a FICO Score Is originally appeared on usnews.com