Digital financial literacy among Americans increases with age, according to research from Capital One.
Nearly 86% of Americans know how to protect themselves and their personal information online, according to a survey 3000 adults. However, more than 40% of consumers lack basic financial knowledge, like how to manage debt or build credit.
This means that only 55% are digitally financially literate, according to Capital One’s definition. These people understand a combination of basic financial knowledge and can protect themselves online from phishing attacks and other scams.
Older respondents rank higher in both digital and financial literacy. Of the 65+ population, 74% rank highly on both digital and financial literacy, compared to just 28% of 18-24 year old population.
Even among those who score low on both digital and financial literacy, 45% said they prefer managing their finances through a mobile app, 19% a website, and only nine per cent going to a bank branch.
Meanwhile, 70% of US households report being enrolled in digital banking for some or all of their accounts. Among consumers who are enrolled, 95% said they bank online “often” or “occasionally.”
Shena Ashley, president, Capital One Insights Centre, says: “Banking is digital – from paying bills to checking bank balances, people are managing their finances online, making digital financial literacy skills critical for consumers.
“Even though an overwhelming majority of Americans are regularly banking online, too many still lack basic financial knowledge and skills.”
