Back To School Why Early Financial Literacy Matters For Every

Leo Migdal

-Dec 7, 2025, 10:29 PM

back to school why early financial literacy matters for every

David Musto, Wharton finance professor and director of the Stevens Center for Innovation in Finance, explores the importance of teaching financial literacy to students, the progress made in recent years, and why early education... Why 2026 Demands Attention The close of 2025 marks an important moment for year-end financial planning. Markets have been unpredictable, new tax laws are set to take effect, and economic policies continue to shift. In times like these, the choices you make before the... Market Commentary The third quarter of 2025 extended gains in most asset classes, marked by alternating bouts of optimism and anxiety as investors weighed slowing growth against the potential for policy easing. After a strong rebound in Q2, equity markets began the...

Living longer is a gift — but it also requires a thoughtful financial plan. With life expectancies rising and medical innovation advancing, many individuals today are not just retiring at 65 — they’re living well into their 90s or beyond. So, the question isn’t just... How to Use 2025’s Consumer Optimism to Make Smarter Financial Moves After months of economic uncertainty, U.S. consumer confidence surged in May 2025, reaching its highest level in over a year. According to The Conference Board, the Consumer Confidence Index jumped to...

June is more than just the start of summer — it's a season of transition. For new graduates, it marks the beginning of financial independence. For their parents and grandparents, it offers a chance to reflect on the lessons that shaped their own financial journeys —... Imagine a hypothetical 27-year-old named Jake, who has been living his best life: Traveling, brunching (only avocado toast), and embracing the YOLO mindset. Retirement? That was a problem for “future Jake.” But by 35, reality hit hard.

He had no savings, mounting credit card debt, and the sinking realization that he had wasted crucial years of compounding growth. Meanwhile, his best friend, who started investing just $200 a month at 22, was on track to afford a home by her mid-30s without being burdened by excessive mortgage debt. It’s 2025, and the financial well-being of young adults is at risk. Despite an avalanche of online resources, young adults still lack the basic financial know-how to make smart decisions. Studies reveal less than 1 in 5 adults aged 18 to 25 save and invest for retirement, and those who wait just a few years can end up paying tens of thousands more to... Meanwhile, a MoneyRates survey shows that people who begin saving in their twenties are 66% more likely to retire by 60[ii] and afford major life expenses – like a down payment on a home...

Millennials and Gen Z want financial education, and 88% of adults support mandatory school courses on financial literacy.[iii] In response, 26 states now require high school personal finance courses, up from just 7 in... Now, just over half of the states require financial literacy for high school graduation, still leaving gaps, especially in underserved communities. Free after-school programs[v], mandatory financial literacy classes[vi], and public-private partnerships,[vii][viii][ix] can help bridge these gaps with practical lessons on budgeting, saving, and investing. Starting early matters; cultural and economic pressures sabotage young investors, and mandatory financial education could dramatically change America’s personal wealth landscape. Real-world success stories, from everyday millionaires to entire states overhauling their curricula to incorporate financial education, prove that mandatory financial literacy isn’t just nice to have – it’s essential. Equipping young people to manage money effectively ensures they can afford critical life milestones, like homeownership, family planning, and eliminating student debt, rather than struggling with financial insecurity for decades.

As the new school year approaches, you're probably busy checking off your back-to-school list—shopping for clothes, signing up for extracurriculars, and getting everything ready for a successful academic year. But there’s one important subject that often slips through the cracks: financial literacy. From managing daily spending to planning for the future, money is a big part of our every day life. That’s why it’s so important for kids to start learning how finances work—before they head off to college or enter the workforce. And there’s no better time to introduce these lessons than at the start of a new school year. Teaching children the basics of money management helps set them on a path toward confident, informed financial choices.

Studies show that kids who learn how to budget, save, and understand economic principles early on are more prepared for real-world money matters. In fact, many financial habits begin to take root by the age of seven, which makes early education essential. The best part? Financial education doesn’t have to be dull. It can be fun, hands-on, and meaningful. It can also be simple to explore in your already-busy daily life.

Here are a few creative ways to help your kids develop money smarts: Ask your child to list out what they need for school—like notebooks, lunchboxes, and new shoes—and then add up the costs. This simple exercise helps them see how budgeting works in everyday life. Home - Education - Financial Literacy: Why It Should Be Taught in Every School Imagine graduating high school knowing how to calculate compound interest, create a budget, understand credit scores, and make informed investment choices. Yet for millions of students, this isn’t reality.

Instead, they step into adulthood burdened by student loans, credit card debt, and a lack of financial planning skills. In today’s fast-paced world, knowledge of money is as critical as literacy and numeracy. Financial literacy—the ability to understand and manage personal finances effectively—is a life skill every student should learn before stepping into adulthood. Unfortunately, it is often overlooked in traditional curriculums. This article explores why financial literacy should be taught in every school, its benefits, challenges in implementation, real-world examples, and how education systems can prepare students to become financially responsible and independent citizens. Financial literacy is not merely about knowing how to save money.

It encompasses a full set of skills necessary to manage personal finances responsibly, such as: By Charlestien Harris, Retired Financial Counselor at Southern Bancorp Financial literacy is a critical skill that benefits every member of the family, regardless of age. For many parents, setting a good example and providing the tools and knowledge children need to become financially successful throughout their lives is essential. For children, it’s about learning how to manage money responsibly and preparing for a financially sound future. Teaching your children about money and how to manage it is a task many parents want to take on, but may not know where to begin.

The tips in this article are designed to help both parents and children take steps toward becoming more financially literate, ultimately benefiting the entire family. Active parental involvement – through modeling behaviors and having open discussions about money – significantly influences children’s financial literacy and future decision-making. Developing financial literacy skills helps individuals build a secure future, avoid financial pitfalls, and achieve their financial goals. Creating and sticking to a budget is a fundamental aspect of financial literacy, and passing down this knowledge increases the chances of building generational wealth. For more information on this and other financial topics, you can email me at [email protected] or write to P.O. Box 1825, Clarksdale, MS 38614.

Here are six reasons why early-age financial literacy education is essential and holds immense importance: You want children to have every opportunity to have a happy, healthy, and succesful life that includes financial security, freedom, and well-being. Financial habits, feelings, and atttiudes are established very early in life. And, they can persist throughout adulthood whether they are good or bad. It is "vital" to note, many parents, educators, and experts may not fully grasp how early adult financial behaviors begin to take shape. Surprisingly, research conducted by the University of Cambridge revealed that adult money habits are often established by the age of 7.

Drawing from my extensive experience of over 20 years in early-age financial education, during which I've interacted with over a quarter of a million children, it's evident that children's sentiments and attitudes toward money... September brings a sense of fresh beginnings, with new classrooms, new routines, and new goals. But there’s one essential subject that doesn’t often make it onto the school supply list: financial literacy. While kids will spend the year learning math, science, and reading, they may graduate without knowing how to budget, save, or plan for their future. These skills are not just for adulthood, they are most effective when introduced early and reinforced over time. Learning to save from a young age teaches far more than just setting aside dollars.

It builds discipline, patience, and the ability to set and achieve goals. When kids and young adults understand the value of money early, they carry that confidence into life’s bigger financial moments, whether that’s managing their first paycheck, paying for college, or buying their first car. These lessons are even more powerful when guided by someone they trust. For children, that guidance often comes from parents, grandparents, or family mentors. For adults, it comes from a financial advisor who provides strategies in financial planning, investment solutions, and wealth management services that fit their unique goals. In both cases, it’s about having someone who can help you think ahead, make informed choices, and stay focused on your path.

At Stevens Capital Partners, we see every day how the right guidance helps adults make smarter financial decisions and feel more confident about their future. Here in Omaha, NE, we also know those lessons are just as valuable for the next generation, when children have someone who talks with them about money, saving, and planning, they begin to see...

Back To School Why Early Financial Literacy Matters For Every

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