The Big Three Questions

Do you have the knowledge needed to make savvy personal finance decisions? The Big Three can tell you.

The Big Three—a trio of simple financial literacy questions—have become the gold standard for measuring whether people understand the basic concepts needed to manage money, build wealth, and create a financially secure future. The Big Three have been used to gauge financial literacy since 2004. Wondering whether you have the financial know-how you need? Put your knowledge to the test today.

Credit: Stanford University - Initiative for Financial Decision-Making

Financial literacy is low among American adults. Only 29% answered all three questions correctly. If we focus on individual questions, we see that respondents performed best on the interest question (69%) and worst on the risk question (42%).

Only 14% of those under age 35 answered all three questions correctly.

Young people’s financial literacy knowledge lags that of older adults. Nevertheless, less than half of those 66 and older were able to correctly answer the Big Three.

Thirty-eight percent of men responded correctly to all three questions, while only 20% of women did so. This is an 18 percentage point gender gap. There is a gender gap for each of the three questions. A smaller fraction of Black and Hispanic Americans answered all three questions correctly compared to White and Asian Americans. This pattern holds for each question.

Only 12% of those with, at most, a high-school diploma answered all three questions correctly, while 51% of those with a graduate degree did so. Respondents had the most difficulty with the risk question, irrespective of education level.

Married respondents have higher levels of financial literacy than unmarried respondents; 36% of married respondents answered the Big Three correctly. Respondents had the most difficulty with the risk question, irrespective of marital status.

The fraction of Americans that answered all three questions correctly ranges from 12% for those with incomes lower than $25K to 49% for those with incomes higher than $100K. Respondents had the most difficulty with the risk question, irrespective of income level.

See the sources here.

Financial Literacy Learning

Financial Literacy Curriculum for G3-G12

Financial Literacy Course for Pre-Teens (Ages 9+)

Designed for ages 9 and up, this course uses stories, games, and simple projects to teach kids the basics of money. Lessons cover what money is, the difference between needs and wants, earning and saving, smart spending, and helping others. The goal is to make learning about money fun, hands-on, and easy to understand for younger students.

Financial Literacy Curriculum for Teens (Ages 13–18)

This curriculum helps teens build real-world money skills to prepare for independence. Through eight practical modules, students learn how to earn, budget, save, manage credit, make smart spending choices, and plan for big life events. Activities, real-life scenarios, and interactive tools make learning about money both useful and relatable.

Young Adults

Harvard Programs - Free Access

  • Harvard College Guide

    Harvard College has focused their resources on providing support and education on financial understanding for all students. The more you know, and the more tools you have at your disposal, the better prepared you will be.

    In this guide, you'll find information on budgeting, credit, saving and investing, and taxes for Harvard College students, and you!

    Credit: Harvard College

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  • Harvard Graduate School of Education

    Reach your financial goals one step at a time. Join iGrad, a personal finance platform provided by Harvard Graduate School of Education. This structured course helps you understand your finances and improve your financial literacy better.

    Credit: Harvard Graduate School of Education

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Stanford Programs - Free Access

  • Harvard College Guide

    Gain the knowledge, skills, and habits to be financially well during your time at Stanford and beyond. See our self-paced content and Stanford personal finance courses for your financial literacy and capability.

    Credit: Stanford - Mind over money

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Business Owners

Harvard Business School Online - Some Free Resources

  • Financial Literacy in Business

    Financial literacy is the understanding of financial terminology, statements, and concepts, and knowing how to use this information to make a financial impact. The first step is to read up on the language and documents your company uses to talk about and track finances.

    Credit: Catherine Cote - HBS Online

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