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Financial Literacy Gaps in Different Generations

Most United States adults have beginner’s knowledge of cryptos, but they intend to use the asset as a source of retirement funds, a new Investopedia Literacy Financial Survey has established. 

In the study, 4,000 US adults, including generation Z, millennials, and baby boomers, were asked about their financial know-how, worries, habits, and retirement plans. The study established that many Americans are still grasping with personal finance basics, investing in cryptos, and retirement.

US Adults have a lot to Learn Concerning Crypto Investing 

Although about 50% of Americans have a strong grasp of financial literacy, such as paying taxes, budgeting, spending, and saving, only a small percentage is knowledgeable about digital currencies.

Overall 57% of adults surveyed are invested, but only 1/3 of them indicated having advanced knowledge of investing. Indeed, fewer, one in four respondents, indicated strong understanding of digital assets, such as cryptos, non-fungible tokens (NFTs) and blockchain. 

Millennials indicated they understand investing the most, with 44% of them saying they have advanced knowledge on the subject. Following closely is Gen X with 37%, Gen Z with 31%, and baby boomers with 26%.

Most Generations Hold Cryptos Despite Knowledge Gaps 

Although most adults in the United States have a lot to learn concerning cryptos, this reality has not stopped them from getting into the cryptos. Crypto-enabled investments are now very popular for the three of the four generations surveyed, Gen X, Millennials, and Gen Z. 

38% of millennials have some kind of crypto investment, making it the most preferred investment option for this generation. Gen Z and Gen X follow closely, while Baby Boomers come last, with only 6% of it having a crypto investment. 

Baby boomers hold the view that mutual funds and stocks will generate the highest returns in the next ten years. 

More Young Americans Have their Eyes Set on Retirement

Despite navigating through different eras of economic uncertainties in the last decade, younger generations are now optimistic about the ability to retire. When asked when they anticipate stopping working, Gen Z indicated a medium age of 57, while Gen X preferred 64, which is in line with the national average. 

As portfolios evolve with emerging technologies, this Literacy Financial Survey established that most of every generation still target to rely on traditional income like social security and 401Ks. Cryptocurrencies also made it to that list. 

28% of millennials indicated they expected to use cryptos for support in retirement, which is at par with their savings and stock market investment. 20% of Gen X and 17% of Gen Z also said the same. 

For younger investors, crypto assets are not simply fun assets for trading but a means of generating wealth and funding their retirement. 

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