Why Financial Literacy Education in US Schools Is Failing Students
Lucas Kang
Staff Writer
Financial literacy remains low in the US, as a 2025 national assessment found that US adults averaged only 49% of personal finance questions answered correctly. Young Americans were the most illiterate, as Gen Z respondents only averaged 38% correct, the lowest out of any generation surveyed. This poses a serious problem to financial health, as a lack of financial awareness correlates to higher economic fragility, greater debt constraints, and lower amounts of emergency savings.
Widespread financial illiteracy can be attributed to a lack of consistent access to financial education. All 50 states now include personal finance in their educational standards, but a 2024 report by the Council for Economic Education found only 35 states explicitly mandate it for high school graduation. Out of these 35 states, 20 require students to take a stand-alone finance course, while the rest infuse them with related courses, like economics or civics. Studies suggest that only students who take mandatory, stand-alone courses in personal finance will score higher on financial literacy tests.
Teaching discrepancies in financial education further exacerbate a lack of financial knowledge. Approximately half of US states provide teachers with tailored training and materials to teach personal finance as per the state’s curriculum standards. Some states may only provide links or resources from private organizations. A lesser fraction provides no training at all. Unfortunately, since teachers are not traditionally trained in finance, uneven training translates to sizable differences in how financial concepts are taught from district to district.
The good news is that states are now making rapid progress to expand high-impact financial literacy education. Between 2022 and 2024 alone, 12 states passed new laws mandating standalone personal finance courses in high schools, insuring high-quality financial education for 21% of high school students. 2025 alone saw four more states do the same, including Texas, which is home to over 1.6 million high school students.
However, even when strong policies are passed, implementation can still fall short. Michigan was one of the 12 states that recently adopted a mandatory standalone financial literacy course, but its Department of Education did not implement the mandate nor provide any training materials for teachers, leading to little real change in how students are taught financial literacy. Similar regulatory hurdles could arise in other states if legislators do not take precautions against poorly designed mandates.
States should also seek to expand curricula in topics adjacent to personal finance. Mathematics courses help students analyze quantitative concepts such as compound interest. In economics, students understand how markets and incentives shape Americans’ financial choices. Government and politics classes can explain the role of the U.S. government in taxation, regulation, and public benefits.
Until personal finance education is consistently and effectively delivered, national literacy rates are unlikely to rise past 49%. Low financial awareness will continue to exacerbate high amounts of debt, less savings, and greater instability in future generations. Addressing these gaps is necessary to guide these generations through even the toughest of financial decisions in adulthood.
Contact Lucas @ lucas.kang@student.shu.edu