“…financial literacy, by which we mean people’s knowledge of and ability to use fundamental financial concepts in their economic decision-making, matters and is more important than ever. The fact that so many people lack financial knowledge not only limits their ability to utilize their resources to the fullest, but also contributes to macroeconomic problems.”

— Annamaria Lusardi and Olivia Mitchell, Journal of Economic Perspectives (2023)

Dollar scholars is an organization intended to educate adults in the basics of finance. Data show that financial literacy is low in the United States, with only 57% of US adults considered to be finacially literate, though the U.S. is higher than the global average of 33% of adults, according to the Standard & Poor’s Ratings Services Global Financial Literacy Survey. A key objective of Dollar Scholars is to target sub-populations who may lack easy access to basic financial education.

The Gap in Financial Literacy Knowledge

In the United States, as well as many countries around the world, men score higher on financial literacy tests than women, with about 62% of U.S. men considered financially literate, while only 52% of U.S. women were considered financially literate. A key objective of Dollar Scholars is therefore to target groups, particularly immigrant communities, and women, who may not have easy access to financial education.

Reference:
Annamaria Lusardi and Olivia S. Mitchell. “Financial literacy around the world: an overview.”Journal of Pension Economics & Finance (2011)