The P-Fin Index: Variations by Education

Financial literacy is positively correlated with both general education and financial education. Figure 7 shows the average percentage of P-Fin Index questions answered correctly by general education level and by receipt of financial education; Figure 8 presents the distribution of correct answers. These findings are consistent with previous studies, as well as the 2017 P-Fin Index findings. 

•    Higher levels of general education are associated with greater financial literacy. One-third of those with a college degree have a relatively high level of personal finance knowledge and understanding, i.e., answering more than 75% of P-Fin Index questions correctly; almost one-half of those with less than a high school degree have a relatively low level, i.e., answering 25% or fewer of P-Fin Index questions correctly.

•    Individuals who have participated in a financial education class or program answered more P-Fin Index questions correctly on average than those who have not received financial education.

P Fin Index Figure 7
P-Fin 2018 Figure 8