Budgeting, the economy, inflation, stocks, and bonds — how much do you know about money and finances? One thing’s for sure: these concepts aren’t exactly taught in school.

Financial literacy is important. However, many people would readily admit that they don’t know much about it. And, even if they wouldn’t readily admit it, a new survey revealed that Americans are not a particularly financially literate bunch.

A survey found that most Americans were not able to pass a quiz on financial literacy that had just seven questions.

The FINRA (or Financial Industry Regulatory Authority) Foundation recently conducted one of its National Financial Capability Studies. These studies aim to track financial literacy among Americans and across the country. The last time the study was conducted was in 2021, according to a USA Today report. Now, FINRA is sharing its 2024 findings.

The study included a Financial Knowledge Quizwhich FINRA administered to 25,500 adults across the country:

1. Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

2. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

3. If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?

4. True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.

5. True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.

6. Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?

7. Which of the following indicates the highest probability of getting a particular disease?

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“The findings indicate wide differences in financial knowledge across the country, but Americans’ overall knowledge about inflation has increased,” FINRA shared.

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Several of the quiz’s seven questions seemed to stump most respondents.

One question asked, “Imagine that the interest rate on your savings account was 1% per year, and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account?”

Only 58% of the quiz’s respondents answered the question correctly. Results were even more abysmal for the question considered the “hardest,” which only a quarter of respondents knew the correct answer to. “If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?” it asked.

FINRA also compared results between states, considering the percentage of people who got at least five of the quiz’s seven questions correct. Minnesota came in at the top of the list, with 34.8% of quiz respondents answering at least five questions correctly. They were followed by Wisconsin at 34.5% and the District of Columbia at 34.4%.

As for the states that scored the lowest, Louisiana ranked the worst with 18.1% of people answering at least five questions correctly. Following Louisiana were Mississippi at 19.2% and Alabama at 20.2%.

Experts were understandably concerned about the lack of financial literacy displayed by quiz-takers.

Investopedia’s editor-in-chief, Caleb Silver, attempted to explain why people scored so poorly on the quiz overall. “I think it’s a lack of being able to connect the dots between economic forces like inflation and how they apply to our everyday lives,” he said. “I take this all the way back to what we’re taught in high school, or what we’re not taught.”

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One thing the quiz made clear was that Americans do not have a solid grasp on interest rates. Gary Mottola, research director at the FINRA Foundation, said this can be problematic because it can lead to “your debt getting out of control through compounding interest.”

Gerri Walsh, the president of the FINRA Foundation, stated, “Overall, the findings show that knowledge of everyday financial concepts remains a challenge for many Americans.”

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There is a push to make financial literacy a priority for schools.

USA Today noted that 27 states now have personal finance courses in high schools, compared to just 11 in 2021. Despite this rise in financial literacy courses, only 15% of respondents to an American Bankers Association Foundation poll said that they felt like school was where they learned about finance.

When asked why more schools don’t teach about financial literacy, the National Financial Educators Council answered bluntly. “The answer is a general failure of the education system to identify the most relevant skills students should possess,” they said.

While teaching personal finance may not be a large priority now, based on the results of this quiz, it’s clear that it should become one. Young adults need to be prepared to take the next steps in their lives towards financial independence with confidence.

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Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.