April marks financial literacy month, and looking around the U.S., it’s clear that Americans need it.
Since 2003, the Financial Industry Regulatory Authority (FINRA) has tested Americans with a financial basics five-question exam, and to date, sixty-six percent of Americans are unable to answer more than three questions correctly. This deficiency is apparent in the real world, where surveys find approximately two-thirds of Americans live paycheck to paycheck and seventy-one percent feel they’re financially insecure. Meanwhile, financial innovations have and continue to further complicate financial literacy. In the media, discussions of traditional finance play second fiddle to discussions about the potential of blockchain technology, decentralized finance (DeFi), cryptocurrency and non-fungible tokens (NFTs). In these discussions, ardent supporters claim blockchain-enabled tools like Bitcoin will not only revolutionize finance but redesign society by replacing trust with technology.
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