As Financial Literacy Month comes to a close, new research from Experian highlights a gap in consumers’ understanding of the financial system. According to the research, nearly half (47%) of U.S. adults say they’ve made a financial decision they later regretted because they didn’t fully understand the terms.
The research findings underscore the importance of financial education as consumers navigate an increasingly complex financial environment. While three-quarters of Americans believe financial education helps people make more informed financial decisions, approximately one-in-five expressed lower confidence in their understanding of personal finance. At the same time, nearly half (46%) are worried about covering monthly expenses, while 29% do not believe they could cover an unexpected expense exceeding $1,000.
Recognizing this opportunity, Experian North America CEO Jeff Softley recently sat down with Congresswoman Young Kim (CA-40), co-chair of the Financial Literacy and Wealth Creation Caucus, for a one-on-one conversation focused on the value of effective financial literacy, as well as the need to modernize the industry’s approach to credit data in hopes of expanding financial opportunity for more communities.
“Talking about finances can be uncomfortable, but it’s essential,” said Jeff Softley, CEO of Experian North America. “We’re committed to helping normalize conversations about money, while also enabling a more comprehensive view of consumers’ financial behavior. When people feel more confident, informed and seen, they’re better positioned to make decisions that support their long-term goals.”
“Financial literacy is a lifelong journey. It doesn’t stop just because you’re an adult. It doesn’t stop when you retire. We actually should be studying today to plan for the future,” said Congresswoman Young Kim. “It all starts with understanding what financial tools are available, and how we partner with the industry. It’s not limited to the month of April when we recognize Financial Literacy Month. It’s got to be 24/7, 365 days a year; a lifelong education.”
Consumers open to new approaches that reflect real financial behavior
The research also points to a growing openness toward more modern approaches to understanding financial behavior.
Fifty-six percent of U.S. adults say they would be comfortable with expanded data sources, such as on-time rental payments, utilities and other recurring bills, being used to help improve access to credit. Additionally, nearly half (48%) of consumers believe expanded data sources would improve their financial opportunities if they were included in lending decisions.
Building confidence through education
As financial decision-making becomes more complex, improving financial education remains a key component of long-term financial health.
“Financial literacy isn’t just about knowledge, it’s about confidence,” said Rod Griffin, senior director of consumer education and advocacy at Experian. “When consumers understand how financial decisions work, they’re better equipped to avoid costly missteps and make choices that support their long-term goals.”
