1 in 3 Americans Don’t Know These Basic Finance Terms
To test the financial knowledge of Americans, GOBankingRates quizzed survey respondents from all 50 states on basic finance terms and concepts.
Respondents were asked the following questions and given multiple answer choices:
- Which of the following describes a 401k?
- What does a CD offered by a bank stand for?
- What is net worth?
- What does HELOC stand for?
- Which of the following does not impact your credit score?
- What are the 3 major credit bureaus?
- Nearly half of survey respondents 65 and older do not know what impacts a credit score
- 58 percent of those aged 18-24 do not know what a 401k is
- More than a fifth of Americans believe a “HELOC is not a real thing.”
- 16 percent of Americans incorrectly believe that networth is your “Income after taxes.”
- Less than a third of respondents aged 18-24 know the 3 major credit bureaus