Financial literacy and well-being in a five generation America: The 2021 TIAA Institute-GFLEC Personal Finance Index

Abstract

With five years of the Gen Z cohort now over age 18, the U.S. adult population spans five generations. This report uses data from the 2021 TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) to compare financial literacy across the Silent Generation, the Baby Boom Generation, Gen X, Gen Y (millennials) and Gen Z at this point in time. How well individuals navigate financial decisions throughout their lifetime depends, at least in part, on their financial literacy.

The P-Fin Index is a long-term project that annually assesses financial literacy among American adults. Gen Z was quota-sampled when fielding the 2021 P-Fin Index survey which enables comparisons with the other generations, as well as a closer examination within the Gen Z adult population. The P-Fin Index survey also includes indicators of financial wellness along several dimensions and those too are examined across generations and within Gen Z

Keywords: TIAA, P-Fin, personal finance, Gen Z, financial literacy, wellness

JEL Classification: G53, G5, D14