More than 40% of Americans are unaware of what a 401k is | National

According to a recent poll, almost half of Americans are unaware of what a 401(k) is. The survey, which included 2,000 Americans from different generations, found that 43% of respondents lacked knowledge about 401(k) retirement plans. This lack of financial literacy was further highlighted by the fact that only 30% of participants believed they could win a personal finance trivia game.

The study, conducted by OnePoll for Financial Practice Week and commissioned by Beyond Finance, also revealed that over a third of Americans (35%) were unfamiliar with the concept of “interest” in a financial context. Despite these gaps in knowledge, only 39% of respondents considered themselves more financially literate than others.

Interestingly, the survey showed that procrastination was a common behavior when it came to implementing healthy financial habits. Four in 10 Americans admitted to delaying financial tasks, with Gen Z being the most likely to procrastinate (49%) and baby boomers the least likely (22%).

Dr. Erika Rasure, the chief financial wellness advisor of Beyond Finance, emphasized the importance of addressing financial health and making small, achievable adjustments to improve one’s financial situation. The study also highlighted how finances can impact relationships, with nearly 40% of respondents reporting that unhealthy spending habits had negatively affected their relationships.

Overall, the survey shed light on the need for financial education and the benefits of learning about personal finance as a couple. Financial Practice Week aims to encourage individuals to develop healthy money habits and make progress towards a stable financial future.