Newsflash: investors are overconfident about their financial knowledge. Business Insider reports:
A new survey by the FINRA Investor Education Foundation found that 75% of U.S. adults say they’re pros at managing their finances, but only 14% could ace a five-question quiz on basic financial concepts.
This was no small study sample size either. A whopping 25,000 consumers took the quiz.
The quiz is, in fact, laughably easy for a competent investment professional. I am shocked that only 14% of consumers could ace the quiz. I wouldn’t necessarily expect a plumber to go 5-for-5, but I would think that most adults would get most questions correct.
You can see the Business Insider story here, and take the quiz. If you are a financial advisor and miss any of these questions that would freak me out. It does go to show, though, that we need to do a thorough job of educating and communicating information to clients.
