FINRA Study Reveals Decline in Financial Capability Among U.S. Adults

The FINRA Foundation has released the sixth wave of the National Financial Capability Study, revealing concerning trends in the financial well-being of U.S. adults. Despite no overall decline in income, increased living costs have strained many households, particularly those with annual incomes between $25,000 and $75,000. This demographic, often referred to as the 'struggle of the middle,' faces challenges similar to lower-income groups, including difficulties in making ends meet and saving for emergencies. The study highlights the impact of inflation on financial stress, particularly regarding food costs and credit card debt.

The National Financial Capability Study, conducted every three years, examines key components of financial capability, including making ends meet, planning ahead, managing financial products, and financial knowledge. The latest survey, which included over 25,500 U.S. adults, introduces new questions on pressing topics such as inflation and the role of artificial intelligence in financial advice.

Compliance professionals should consider these findings when developing financial education programs and advisory services to better support affected populations. A virtual press conference will provide further insights into the study's findings, scheduled for today at 11 a.m. E.T.