Almost Half Of Americans Have No Clue What A 401k Is

How would you rate your knowledge of finances? A new survey suggests a lot of us have a lot to learn. It asks 2-thousand Americans about their financial literacy and money habits and finds that almost half (43%) don’t have a clue what a 401(k) is.

The poll also reveals:

  • People aren’t very confident about their financial knowledge, as only 30% think they could win a personal finance trivia game.
  • More than a third (35%) admit they don’t know what “interest” means in a financial context.
  • Despite not understanding these things, 39% still consider themselves more financially literate than other people.
  • When it comes to starting healthy financial habits, four in 10 Americans say they procrastinate. Gen Z is the most likely to put it off (49%), while baby boomers are least likely (22%).
  • So why are people postponing their personal finance tasks? Stress is the biggest reason (25%), followed by feeling like their financial health is already bad and can’t get any worse, while some folks blame it on forgetfulness (13%).
  • In general, Americans check their banking app twice a day, on average. When they do, half say they feel nervous, but it’s worse for Gen Z, as nearly two-thirds (65%) of them feel anxious about it.
  • But 26% of all respondents avoid signing into their banking apps on a daily basis.
  • While 80% of those polled try to stick to a monthly budget, they admit they only do about 66% of the time.
  • Finances can even affect relationships, as 39% have had their partner’s unhealthy spending habits negatively impact their romance.

Source: SWNS Digital


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