Each April, NAIFA is proud to recognize and promote Financial Literacy Month. Consumers with a strong understanding of financial concepts are much less likely to suffer money-related stress or hardships. They are more likely to effectively manage debt, develop written financial plans, create and achieve financial goals, prepare for retirement, and purchase financial risk-protection products. Financial literacy strengthens families, American communities, and the economy.

Unfortunately, Americans are not always as financially literate as they should be. “Financial Literacy and Retirement Fluency in America,” a report by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC), states that U.S. adults on average score around 50% on a basic financial literacy test. In a similar vein, the 2025 Insurance Barometer Study, conducted by Life Happens and LIMRA, shows that about three-quarters of adults overestimate the true cost of life insurance and 41% say they are only somewhat or not at all knowledgeable about life insurance.

This lack of understanding has real-work consequences. According to the TIAA-GFLEC report:

“Greater financial literacy generally translates into greater financial well-being, and lower financial literacy is generally associated with lower financial well-being. Compared with those who have a very high level of financial literacy, those with a very low level of financial literacy are:

• • Twice as likely to be debt-constrained.
  • Three times more likely to be financially fragile.
  • Five times more likely to not have or be unsure whether they have nonretirement savings su­fficient to cover one month of living expenses.
  • Eight times more likely to spend 20 hours or more per week (and over two times more likely to spend 10 hours or more per week) thinking about and dealing with issues and problems related to personal finances.”

NAIFA actively advocates for policies that improve Americans’ financial understanding. NAIFA chapters have provided grassroots support for measures requiring high school students to pass a financial literacy course prior to graduation. Thirty-six states now have such requirements in place and seven more have legislation under consideration. NAIFA is an active supporter of the Congressional Financial Literacy and Wealth Creation Caucus and our members use their grassroots influence to urge their lawmakers to join. The Caucus aims to equip American with the skills and resources they need for economic stability, wealth-building, and prosperity.

NAIFA members play a vital role in advancing financial knowledge in communities across the country, working with schools, local governments, churches, and civic groups to offer educational resources. They provide workshops and volunteer their time to teach essential financial concepts such as budgeting, saving, debt management, and retirement planning. In addition, Life Happens, NAIFA’s consumer outreach community, offers valuable resources to help financial professionals educate the public during Financial Literacy Month, including a social media toolkit of posts and graphics available to NAIFA members.