The Cost of Financial Ignorance: Why You Feel Broke
It's not just you. We are facing a global crisis of financial literacy that is costing Americans billions every year. Here is the data you need to know.
The $388 Billion Problem
According to the National Financial Educators Council, a lack of financial knowledge cost Americans an estimated $388 billion in 2023. That averages out to over $1,500 per adult lost to fees, high interest, and poor investment decisions.
*Adjusted for 2025 inflation and rising interest rates, this figure now exceeds $415 billion annually. That's over $3,000 per household lost to avoidable financial mistakes—money that could have been building wealth instead.
The Debt Trap
The most visible symptom of this crisis is debt. Without a clear understanding of interest rates (APR) and compounding, millions fall into the credit trap.
- 60%of millennials carry credit card debt from month to month.
- 41%of Americans would struggle to cover a $1,000 emergency expense.
The Savings Gap
Why is saving so hard? It's partially because we aren't taught how. Global financial literacy rates hover around 27%. This means nearly 3 out of 4 adults lack the basic skills to manage their money effectively.
Financial Literacy Rates (Global)
Source: Standard & Poor's Global FinLit Survey
The Solution: Education & Automation
You can't fix the system overnight, but you can fix your own household. The first step is awareness. You need to see exactly where your money is going to stop the leaks.
This is why we built Expense Atlas. We automate the "awareness" part of the equation so you can focus on the "action."