Highlights From the FINRA Foundation National Financial Capability Study
Financial Capability in the United States
Finally, those with higher financial literacy appear better able to avoid some of the pitfalls associated with
managing financial products.
They were less likely to report engaging in credit card behaviors that generate sizeable interest or
fees (paying the minimum due, paying late fees, paying over-the-limit fees, or using the card for cash
advances) than those with lower financial literacy levels.
Costly credit card behaviors in the past 12 months
(among respondents with credit cards)
25%
Paid the minimum payment only
46%
11%
Incurred a late fee for late payment
23%
9%
Used the cards for a cash advance
20%
Was charged an over-the-limit fee for
exceeding credit line
6%
16%
Higher financial literacy
Lower financial literacy
They were also less likely than those with lower financial literacy to report using alternative forms of
borrowing, such as taking out an auto title loan or a payday loan, getting an advance on a tax refund,
using a pawn shop, or using a rent-to-own store.
Non-bank borrowing methods used in the past five years
<15>
12%
Pawn shop
28%
9%
Short term "payday" loan
20%
7%
Auto title loan
17%
7%
Rent-to-own store
19%
6%
Tax refund advance
16%
Total: Used one or more non-bank
20%
borrowing method
41%
Higher financial literacy
Lower financial literacy
Highlights From the FINRA Foundation National Financial Capability StudyView entire presentation