High School Grads Lack Personal Finance Education, Leading to Financial Mistakes, Survey Shows
According to a recent survey conducted by Ramsey Solutions, a staggering 88 percent of U.S. adults feel that high school did not adequately prepare them for handling money in the real world. The survey highlights the need for increased personal finance education among high school students, as adults believe that they would have made significantly fewer financial mistakes if they had received proper education on managing their money during high school.
The lack of financial education starts early on, as adults reflect on their own experiences. Cindy Barrera, Vice President of Frost Bank, revealed that personal finance was not discussed in her household when she was growing up. Barrera now teaches investment through the Frost Financial Youth Academy offered in the Corpus Christi Independent School District (CCISD). She emphasized the importance of enlightening children about financial matters, saying, “It’s all so new to them. But really the overwhelming feeling of it’s way easier than they thought.”
The survey indicates that 80 percent of adults believe that they would have had a better financial start if they had learned about personal finance during their high school years. This sentiment is echoed by three out of four adults who admitted to frequently or occasionally experiencing stress due to financial matters. The lack of financial education can have long-term consequences, as high school graduates often enter adulthood with a skewed understanding of credit and its potential consequences.
George Kamel, co-host of the Ramsey radio show, explained that many high school graduates perceive credit as free money, unaware of the impact it can have on their lives as they start building their own families and homes. Kamel stated, “And so you get the car loan and the mortgage payment. And all of a sudden you look around and you’re drowning in payments early into adulthood wondering, is this it? Is this the piece and dream I was promised?”
While some progress has been made, with 26 states in the U.S. currently requiring personal finance education before graduation, Texas is not one of them. However, the survey also found that more young people are beginning to take personal finance courses, indicating a growing recognition of the importance of financial literacy.
The results of the survey highlight the urgent need to prioritize personal finance education in high schools across the country. By equipping students with the knowledge and skills to make informed financial decisions, society can help young adults avoid unnecessary financial stress and pave the way for a more secure and prosperous future.
Analyst comment
Positive news. Analyst: The market for personal finance education will likely see increased demand as awareness grows about the lack of financial literacy among high school graduates. This presents an opportunity for education providers to create and offer comprehensive personal finance courses to meet this demand.
