As economic instability rises and political shifts threaten financial security, new insights from nudge highlight that financial education is more crucial than ever in helping Americans achieve ‘The American Dream’ – nearly 100 years after the phrase was popularized.
Over 2 million users were polled and found that U.S. employees who boost their financial knowledge also see a measurable improvement in their financial health. On average, U.S.-based employees received a financial health score of 56/100, which is a four-point jump from the previous quarter and slightly above the global average of 55.
With rising living costs, increasing debt, and a changing political landscape, financial education is now more critical than ever. Debt, credit, and investing topped the list of financial concerns for Americans, showing that many are taking proactive steps to secure their financial future in an uncertain time.
A 2024 Pew Research poll found that 41% of Americans believe the American Dream was once attainable but is no longer within reach, reflecting growing concerns about financial stability. This underscores the increasing need for financial education to help individuals navigate today’s complex economic landscape.
Jeff Miller, Vice President of US at nudge, commented: “The American Dream is built on the promise of financial stability and opportunity. It is still within reach for those who possess financial knowledge, skills, and confidence. With the U.S. experiencing political and economic changes, it’s more critical than ever that Americans become financially literate. To address challenges and build their financial futures, more and more American workers are asking their employers for unbiased in-the-moment financial education support.”
The urgency for financial literacy is even greater for Gen Z, who are on track to surpass Millennials in credit card ownership. According to TransUnion, 84% of Gen Z consumers had at least one credit card in Q4 2023, compared to just 61% of Millennials a decade earlier.
Jeff added, “With the cost of living continuing to rise and consumer debt climbing, employers have a responsibility to support their workforce by offering financial education. This helps employees make informed financial decisions and build long-term financial security, reigniting the American Dream and making it accessible for everyone.”
* nudge
