The Financial Literacy Problem in the U.S.
Financial literacy among U.S. adults remains alarmingly low, with the average financial literacy rate standing at just 48%, according to a 2024 article by Moneyzine titled “Financial Literacy Statistics: Financial Knowledge by Key Demographics.” Generation Z demonstrates the lowest financial literacy rate among all U.S. generations, with only 38% able to correctly answer basic financial questions. This lack of knowledge isn’t just a generational issue; it’s also linked to income levels. Only 28% of Americans earning less than $25,000 per year are financially literate, underscoring the socioeconomic disparities in financial education. The consequences are significant—since 2017, the National Financial Educators Council (NFEC) has been tracking the financial cost of this knowledge gap. In 2022, they reported the highest average loss per person due to a lack of financial education, totaling $1,819. Common financial mistakes contributing to this loss include overdraft fees, luxury spending, credit card interest and fees, identity theft, and vehicle-related expenses.
Americans’ Experiences with Personal Finance and High School
A striking 80% of Americans believe they would have been better off if they had learned more about personal finance in high school. The majority of Americans, 88%, report that they were not fully prepared to manage money when they graduated high school. This lack of preparedness has long-term implications, as 74% believe they would have made fewer financial mistakes had they received adequate personal finance education during their formative years. Additionally, 41% of Americans indicate they had to teach themselves about personal finance, highlighting the gap in formal education and the burden placed on individuals to navigate complex financial systems without foundational knowledge.
Teens’ Experience with Personal Finance
This education gap extends to today’s teenagers, with 74% of U.S. teens lacking confidence in their personal finance knowledge. A majority of teens, 75%, rely on their families for financial education, while only 52% learn about personal finance at school. This disparity suggests that financial literacy is often dependent on parental knowledge and willingness to discuss finances, which can vary widely across households. Without a standardized approach to financial education in schools, teens are left with inconsistent and often inadequate preparation for adult financial responsibilities.
American Attitudes Towards Personal Finance Education in Schools
Recognizing the importance of early financial education, 63% of Americans believe personal finance should be taught in schools. There is a growing awareness that financial literacy is a critical life skill, essential for navigating today’s complex financial landscape. The desire for more structured financial education is not limited to adults; U.S. teens echo this sentiment, with 73% wanting to learn more about personal finance. This overwhelming demand reflects a clear need for educational systems to prioritize financial literacy as part of the standard curriculum.
The Reality of Personal Finance Education in Schools
Despite the clear demand for financial education, the current reality is mixed. According to the 2024 Survey of the States by the Council for Economic Education, only 35 states require students to take a personal finance course to graduate. While this represents significant progress, it also reveals gaps in access to financial education nationwide. The disparity in educational requirements contributes to inconsistent financial literacy levels among American youth and reinforces socioeconomic divides.
The Importance of Early Financial Education
According to the Consumer Financial Protection Bureau’s 2016 research-based report brief, Building Blocks to Help Youth Achieve Financial Capability, middle childhood (ages 6-12) is a period when youth acquire foundational knowledge that forms their financial habits and norms, including healthy money habits and basic rules of thumb for managing finances. The developmental stages critical for building financial capability are:
- Early Childhood (ages 3-5): Development of executive functions, including self-control and problem-solving.
- Middle Childhood (ages 6-12): Development of financial habits and norms, such as making thoughtful spending choices and understanding the importance of saving for future needs.
- Adolescence and Young Adulthood (ages 13-21): Development of financial knowledge and decision-making skills, including factual knowledge, research, and financial analysis.
It’s clear from this data that the formal education of children in personal finance shouldn’t wait until high school. In fact, ideally it will start as early as first grade!
Addressing the Gap: CricketTogether’s Financial Wellness Curriculum
To help bridge the gap in early financial education, CricketTogether, a Cricket Media eMentoring program for 3rd-8th graders, offers two curriculum modules dedicated to money management basics:
- Module 1: Financial Wellness and You – Engages students with articles and discussions about making informed money management decisions.
- Module 2: Dollars and Sense – Teaches students about saving, spending, and sharing money, equipping them with the foundational skills needed for financial literacy.
CricketTogether goes beyond financial literacy by integrating these lessons into its broader, award-winning literacy-focused curriculum, which includes 18 additional educational units. Each student progresses through the curriculum with the guidance of a classroom teacher and the personalized support of a virtual Mentor, or eMentor. This unique model ensures that students not only learn financial concepts but also receive the practical perspective needed to apply these lessons in real-life scenarios.
How CricketTogether Makes a Difference
CricketTogether relies on corporate partnerships to supply volunteer eMentors and sponsorships, allowing schools to access this valuable program free of cost. This collaborative approach ensures that students, regardless of socioeconomic background, can benefit from early financial education. By targeting elementary and middle school students, CricketTogether addresses the financial literacy gap at its roots, preparing the next generation to make informed financial decisions.
Learn More and Get Involved
The need for financial education is clear, and CricketTogether is making a significant impact. To learn more about how to support this initiative—whether by sponsoring a classroom or supporting colleagues to volunteer as eMentors—schedule a meeting with Program Director, Kahti Motley via her Calendly link. Together, we can empower the next generation with the financial knowledge they need to succeed.
Sources
Consumer Financial Protection Bureau. Building Blocks to Help Youth Achieve Financial Capability. Report brief. September 2016. https://www.consumerfinance.gov/data-research/research-reports/building-blocks-help-youth-achieve-financial-capability/.
Council for Economic Education. “2024 Survey of the States.” n.d. https://www.councilforeconed.org/policy-advocacy/survey-of-the-states/ (accessed February 24, 2025).
Woodall, Idil, and Keith Hodges. “Financial Literacy Statistics: Financial Knowledge by Key Demographics.” Moneyzine. November 18, 2024. https://moneyzine.com/personal-finance/financial-literacy-statistics/.
