Most Americans feel financially literate, but tax confidence and education gaps persist 

New data from a survey of 1,095 U.S. adults by Intuit Credit Karma and TurboTax highlights how many Americans feel they are making informed financial decisions. Here's what the data reveals.

• 74% of Americans consider themselves to be financially literate
• 83% said their parents' attitudes toward money and financial tools (e.g., credit cards, saving, and budgeting) influenced how they think about and approach those same topics today
• 52% said they have experienced a setback due to a financial decision they made that was based on incorrect information

“I’ve Got This” … Or Do We?

Nearly three-quarters of Americans (74%) say they consider themselves financially literate, especially when it comes to budgeting, with 64% feeling very or extremely confident managing a budget. But confidence drops sharply with more complex financial topics. 35% of Americans feel only slightly or not at all confident about their investing knowledge, 22% feel slightly or not at all confident about taxes, and 26% feel slightly or not at all confident about loans.

Even though many Americans feel financially literate to an extent, one-third of respondents (67%) admit they’d be further ahead in life if they were more financially literate. This shows that while many feel confident in their financial knowledge, they still recognize there are gaps that may be holding them back.

The Tax Knowledge Gap Is Real

Taxes are a particular sticking point for Americans. More than half of Americans (55%) say they depend on a parent, accountant or friend to help them file their taxes because they lack the foundational knowledge to do it confidently on their own. Among Gen Z, that number jumps to 72%.

When it comes to understanding the fundamentals, only about half (49%) say they can confidently explain the difference between a tax deduction and a tax credit. Meanwhile, 17% say they aren’t knowledgeable about any of the major deductions and credits, from the Child Tax Credit to the Earned Income Tax Credit.

Given these gaps, it’s no surprise that three-quarters (76%) say a required school course on personal tax filing would have been very-to-extremely valuable to their lives today.

When it comes time to file, most Americans turn to online tax preparation software like TurboTax (54%), while 21% use a certified accountant and 19% go with an in-person service. Just 7% still file by hand.

Schools Fall Short on Money

Today’s financial literacy gap starts in school. Nearly 4 in 10 Americans (39%) don’t believe school prepared them to manage their finances as an adult.

Here are the financial topics they wish they’d learned in class:

• 64% investing
• 56% creating a budget
• 50% filing taxes
• 51% credit card basics
• 51% debt management

Parents Shape Money Habits

If school fell short, who filled the gap? For most people, it was family: 61% of Americans say their parents or grandparents had the greatest influence on their financial habits growing up, and 83% say their parents’ attitudes toward money still shape how they think about it today.

But influence doesn’t stop at home. Roughly 1 in 5 (21%) say social media and influencers influenced their financial habits growing up, climbing to 29% among millennials.

The Convenience Trap

One area where the survey reveals a generational divide: the prioritization of convenience over cost. More than half of Americans (53%) agree that when it comes to subscriptions and services (like Netflix or DoorDash), convenience wins over price-consciousness.

But that tendency skews heavily by age. A striking 76% of Millennials agree, compared to just 25% of Boomers. Gen Z clocks in at 58%, suggesting that the “subscribe to everything” mentality may be softening slightly among the youngest adults.

On the flip side, 80% of Americans say they do know exactly how many subscription services they’re currently paying for, which is a start.

How Emotions Shape Financial Decisions … and Increase Risk

When it comes to the emotions that influence Americans’ financial decisions, confidence tops the list (39%), followed by optimism (20%), with fear not far behind at 14%.

That emotional decision-making can come at a cost. Nearly half of Americans (52%) say they’ve experienced a financial setback due to a decision based on incorrect information.

That vulnerability may also help explain rising concern about financial scams: 40% of Americans say they’re very or extremely worried about falling victim to one, while another 48% are at least moderately concerned. In an era of increasingly sophisticated fraud, that wariness may be well-founded.

The Bottom Line

Americans are more financially engaged than they sometimes get credit for, but engagement and education aren’t the same thing. The data suggests a population that is largely winging it, learning from family by default, and quietly wishing someone had given them a proper foundation earlier.

The good news? It’s never too late. Whether it’s finally understanding your W-4, getting clear on what deductions you qualify for, or building a budget that actually sticks, one of the most important financial moves is simply deciding to learn and take action.

Methodology

The survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma from March 5 to March 8, 2026, among 1,095 adults ages 18 and older.

This story was produced by Intuit Credit Karma and reviewed and distributed by Stacker.