Experian (a global enterprise that has an office at Bloor Street East, in Toronto) recently surveyed more than 2,000 consumers about their perceptions of financial literacy, as well as their confidence in their current financial situation.
To discover more, Digital Journal spoke with the firm’s global senior manager of consumer education and advocacy, Christina Roman, to explore the key findings.
Digital Journal: Experian’s latest research suggests there’s a gap in consumers’ financial knowledge. How significant is the issue?
Christina Roman: Financial literacy remains a challenge for many consumers, even as access to financial information continues to grow. Our research found nearly half of Americans (47%) have made a financial decision they later regretted because they didn’t fully understand the terms. That’s a strong signal that many consumers are navigating important financial choices without feeling fully informed or confident.
Financial literacy today goes far beyond understanding basic budgeting. Consumers are making decisions about credit, lending, debt management, identity protection, and long-term financial planning in an increasingly complex environment. When people don’t fully understand the products and services they’re using, it can create setbacks that affect their financial progress for years.
What’s encouraging is that consumers recognize the value of education. Seventy-five percent believe financial education plays an important role in helping people manage credit and borrowing responsibly. At Experian, we see that as both an opportunity and a responsibility. Consumers want practical, accessible guidance that helps them make informed decisions, and the industry has an important role to play in delivering education, tools, and transparency that build confidence over time.
DJ: Younger generations appear to have a different approach to financial literacy. What are some of the trends among Gen Z and Millennials?
Roman: Gen Z and Millennials are approaching financial education differently than previous generations because they’re growing up in a digital-first financial ecosystem. They’re often learning about money through social media, online communities, podcasts, and creators rather than relying exclusively on traditional financial institutions or advisors.
Our research found 32% of Gen Z and 26% of Millennials turn to social media for financial information, significantly more than older generations. At the same time, these younger consumers are also more likely to report regretting financial decisions because they didn’t fully understand the terms. That combination highlights both the opportunity and the challenge of today’s information landscape.
One of the realities we’re seeing is that financial information is more accessible than ever, but accessibility doesn’t always translate to understanding. A lot of the advice consumers encounter online and from friends and family is rooted in personal experiences. While those perspectives can be valuable, what worked for one person’s financial situation may not be appropriate for someone else’s. Financial decisions are highly personal, and context matters.
That creates an important opportunity for organizations to help consumers separate general advice from actionable guidance. Building trust today requires more than simply providing information. It means offering education that is accurate, transparent, easy to understand, and relevant to consumers’ real-life financial decisions.
Consumers don’t just want more information. They want confidence that the information they’re using is credible and applicable to their own circumstances. Organizations can earn that trust by showing up consistently, explaining financial concepts in plain language, and providing tools that help consumers make informed decisions. The organizations that can deliver that clarity and context will be best positioned to build long-term relationships and support better financial outcomes.
DJ: Many consumers are concerned about day-to-day expenses. What’s driving that ongoing fear?
Roman: What stands out in the data is that financial stress isn’t always tied to a major financial crisis. More often, it’s the cumulative pressure of everyday expenses. Nearly half of Americans say they often or always worry about covering monthly costs, and the expenses causing the greatest concern are necessities such as groceries, utilities, and housing.
Even among consumers who describe themselves as financially comfortable, many still feel vulnerable because they have little room for unexpected costs. In fact, four in ten Americans say they are only slightly or not at all confident they could cover an unexpected $1,000 expense. That tells us many households are operating with very narrow financial margins.
The reality is that financial wellness isn’t defined solely by income. It’s also about resilience. Consumers want to feel prepared for life’s surprises and confident that they can absorb unexpected expenses without disrupting their broader financial goals. Building emergency savings, understanding credit options, and having access to financial tools and education can all help strengthen that sense of stability and control.
DJ: What do these findings ultimately signal about the future of financial wellness and consumer expectations?
Roman: The findings point to a future where consumers expect more than financial products. They expect financial guidance. People want tools and resources that help them better understand their options, make informed decisions, and feel more confident managing their financial lives.
What’s particularly notable is that while consumers cite higher income as the top factor that would improve their financial confidence, many also point to lower expenses and better financial education. That underscores how interconnected financial wellness truly is. Confidence comes not only from earning more, but also from understanding how to manage money, use credit effectively, and navigate financial decisions successfully.
For financial institutions and fintechs, this creates a significant opportunity. Consumers increasingly value organizations that act as trusted partners in their financial journey. At Experian, we believe the future of financial wellness is rooted in greater transparency, personalized education, and tools that help consumers understand and improve their financial standing.
The broader takeaway from this research is that financial wellness is becoming increasingly proactive rather than reactive. Consumers aren’t just looking for help when they encounter a problem. They’re looking for resources that help them build confidence, strengthen financial habits, and make smarter decisions over time. The organizations that invest in helping consumers build both financial capability and financial confidence will be best positioned to earn long-term trust and loyalty.