Flunking adulthood: Why are Americans so financially illiterate? | Opinion

Americans continue to struggle with financial literacy, and it’s only getting worse as years go by. According to a recent survey, American adults estimated that they lost over a thousand dollars in 2024 due to a lack of necessary knowledge on how to manage their money.

People with poor financial literacy skills are more prone to make poor borrowing decisions and have higher debt and bankruptcy rates because they lack the necessary awareness of how to grow or manage their money. Factoring in what’s currently happening with tariffs, with inflation driving up costs at grocery stores and gas stations and increases with rent and mortgage rates, it’s no wonder that consumer confidence is at an all time low.

America quite literally can’t afford to be financially illiterate.

So what, exactly, is going wrong?

Education

It starts with education: What’s being taught in our schools plays a crucial role in equipping students and future generations with the tools they need to live a successful life and manage money efficiently.

Currently, 26 states have legislation that requires a personal finance course as a high school graduation requirement. Eighty-five percent of Americans said learning about personal finance should be a requirement to graduate from high school. And last year, California’s financial literacy bill, signed into law by Gov. Gavin Newsom, mandates one semester of a stand-alone personal finance course aimed at preparing students early on for a healthier financial future.

The requirement is expected to take effect in the beginning of the 2027-28 school year, which means the focus now shifts to developing and implementing the curriculum to ensure that the new personal finance courses are impactful. Topics are expected to cover budgeting, personal banking, taxes, credit, investing and consumer protection that students can apply throughout their lives.

Beyond graduation

Talk to your colleague or neighbor and you’ll see that many Americans are struggling with their finances. The 2025 Cash Poor Report showed that Americans have limited savings and are unable to endure an emergency or even a planned expense. These individuals include those with college degrees, homeowners and even individuals with six-figure incomes.

Many consumers don’t have a basic understanding about how financial products work, how to grow their funds or even how to hold onto their money.

We need more widespread discussions around money, such as income, investments and savings at home. It shouldn’t be considered a taboo topic. Parents have that ever-critical role to play in raising smart-money kids.

A prosperous society has to factor in financial literacy in order to provide everyone with real world skills to navigate life, deal with money and feel empowered. Providing our communities with valuable financial information needs to start now.