Financial literacy is a critical life skill that often receives inadequate attention in high schools. While traditional subjects like math and science take center stage, understanding personal finance remains a blind spot for many students. Let’s explore why financial literacy matters and why teens should learn the basics before heading off to college. 

The Current State of Financial Literacy Education (2023)

In 2023, financial literacy education faced several challenges:

1. Debt Crisis:

  • U.S. college students grapple with massive debt
  • Lack of financial literacy leaves recent graduates ill-prepared to manage their finances.
  • An estimated 44% of Americans cannot cover a $400 emergency without going into debt o 56% have less than $10,000 in savings for retirement

2. Parental Limitations:

  • Parents play a crucial role in instilling financial habits, but many lack the necessary skills themselves.
  • Passing on skills they don’t possess becomes challenging.
  • Consequently, students cannot solely rely on learning financial prowess at home.

3. Schools’ Role:

  • Can schools bridge the gap? The answer is ambiguous
  • A Champlain College national report card on financial literacy graded 27 states with a “C” or lower.
  • While students learn math, finance-related curriculum remains optional.
  • Concepts like compounding interest, credit scores, and tax returns are often overlooked.

Why Teens Need Financial Literacy Before College

1. Budgeting and Saving:

  • Understanding budgeting helps teens manage income, expenses, and savings.
  • Learning to allocate funds wisely prevents overspending and fosters financial stability.

2. Debt Management:

  • Teens must grasp the implications of student loans, credit cards, and interest rates.
  • Responsible borrowing and repayment strategies are vital

3. Investment Basics:

  • Introducing concepts like ROTH IRAs, stocks, and compounding empowers teens to make informed decisions.
  • Early investment knowledge sets the stage for long-term financial growth.

4. Financial Independence:

  • Teens heading to college need to navigate finances independently.
  • Knowing how to handle bills, rent, and daily expenses is crucial

5. Life Preparedness:

  • Financial literacy extends beyond college. It prepares teens for life’s challenges.
  • Whether buying a home, saving for retirement, or handling emergencies, these skills are universally applicable.


High schools must prioritize financial literacy education. Equipping teens with practical money management skills ensures a brighter financial future. Let’s empower our youth to make informed choices and build a solid foundation for financial well-being. Remember, financial literacy isn’t just about numbers; it’s about empowering individuals to take control of their financial destiny