Typically financial literacy statistics paint a dismal picture of what is going in terms of where education is failing. We wanted to highlight those financial education statistics that give us hope and show what is really making a difference.
The fact is, financial literacy statistics generally reflect what happens when you never teach kids about money. The overwhelming majority of students never received financial education, and the statistics show the results of this omission. But take a look at what can happen when a practical financial education is delivered to kids and to adults.
Research shows that individuals graduating from high schools in states that require personal finance education have higher savings rates and net worth as a percentage of their earnings than individuals graduating from high schools in states where financial education is not mandated. (Source: “Integrating Financial Education into School Curricula,” The Department of the Treasury)
87% of teens report their parents are their main source of financial education.(Source: Charles Schwab Foundation)
Research indicates that people who have had financial education participate more often in retirement programs, make larger contributions to the program and have a much higher savings rate than others. (Source: “Integrating Financial Education into School Curricula,” The Department of the Treasury)
We need a completely different set of skills for kids to operate well in what we call a ‘Third Wave,’ or knowledge-based, economy. We must therefore, radically redesign our conception [of schools].” (Source: Alvin Toffler)
89% of people are in agreement that saving and investing can help you achieve the freedom to do what you want in life.(Source: Charles Schwab Foundation)
About two out of three parents surveyed say they definitely see personal finance education as their responsibility, and consistently make the effort to teach their children about it, compared to the only 41% of students who say their parents did. (Source: The Hartford Financial Services Group, Inc.)
Teenagers that reported learning about managing savings and checking accounts were more likely to report having opened both types of accounts, and they were more likely to save, have a budget, and the money to make purchases.(Source: Boys & Girls Clubs of America and the Charles Schwab Foundation)
Youth that reported learning to create and maintain a budget were more likely to report actually developing one.(Source; Boys & Girls Clubs of America and the Charles Schwab Foundation)
As we continue to gather the data of others based on research and polls, there is still a resounding truth coming through – education in terms of financial literacy truly helps a person manage their money with success.
My name is Achsha Jones, I’m a thirty-eight-year-old “Xennial” (Gen X/Millennial cusp), native and current Detroiter. This is #MyRenaFiStory. I have two daughters, twelve and six, and a fifteen-year-old stepson. In the last decade, I’ve filed for bankruptcy and divorce, remarried, had another child, changed careers twice, purchased a home and went broke. Telling the story of how my upbringing and experiences of almost four decades have brought me to my present state is complicated and lengthy so I’ll give you the Readers’ Digest version.
Growing up in 80s Detroit, I saw a lot; the city was heavily segregated and losing thousands of residents every year. There was an annual tradition of massive arson lasting up to a week that would begin on “Devil’s Night”, the night before Halloween where hundreds of buildings were set ablaze.