The personal finance learning gap persists
Learning how to navigate the financial markets can pay off for decades.
“Teaching students about the financial markets is the greatest asset for building wealth,” said Yanely Espinal, director of educational outreach at Next Gen, in an interview with CNBC.
Without that knowledge, young people are more likely to panic during market downturns or avoid investing altogether, missing out on long-term growth. While more teens are learning about personal finance in high school, another report discovered there are still major gaps in education.
A recent report from Junior Achievement and MissionSquare Retirement Foundation found that roughly 70% of teens think saving for retirement is something they can think about later. At the same time, 80% of teens have never heard of a FICO score or don't understand what it means.
When teens do have money, only 36% save a portion for their future, while just 23% save for their college education and 13% invest, the report found. In short, millions of teens are entering adulthood with real financial fears — but without the tools to navigate them.
But some states are trying to close the gap. As of March 2025, 27 states require high school students to take a personal finance course before graduating, and another 17 states are considering similar bills, according to Next Gen's bill tracker.
But implementation is a challenge. Outside the states that require a course, fewer than 1-in-10 students receive financial education, reports CNBC. And even in states with mandates, many schools struggle to find trained teachers.
“The issue isn’t that we don’t have teachers,” said John Pelletier of Champlain College. “What we don’t have is highly trained teachers because it is an orphan curriculum.”
Pelletier estimates the U.S. would need at least 23,000 trained educators to teach all 9.2 million public high school students in required-course states.
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Learn MoreHow to start your personal finance journey
Even if your school doesn't offer a course — or if you graduated from high school a long time ago — it's never too late to learn the basics about money management and investing. Here's where to start:
Learn how to make and stick to a budget
The simplest step is to track your income and expenses — how much do you make and how much do you spend? Paying attention to where your money goes is the first step, and you can use a budget tool like You Need a Budget or a small notebook to keep a money diary and track every cent you spend.
Create an emergency fund
Start saving as much as you're able each month, with the goal of saving up six months of expenses. Put it in a high-yield savings account, where you'll earn a higher interest rate. Even if it takes years to save up enough, this is the first step to building financial health. When emergencies arise, you'll have savings to fall back on instead of relying on loans or credit cards that can create a spiral of debt.
Read the (financial) classics
Books are a simple, affordable way to start your education. Visit the library and pick up books like The Millionaire Next Door, The Simple Path to Wealth, and Die with Zero. These books offer a well-rounded explanation of how markets work and how to start building long-term wealth.
Start investing early
If you're working, look into Roth IRAs. These tax-advantaged savings accounts can help you start saving for retirement — and the earlier you start, the more time it'll have to grow. Experts recommend saving 10 to 15% of your income in a retirement account in your 20s, but max it out if you're able. Also, do some research on index funds, as they tend to be less risky than buying separate stocks.
Use reputable sources to learn
There are plenty of social media influencers who claim to teach financial literacy, but many of them promote risky strategies like crypto or day trading. Free sites like Next Gen Personal Finance, NerdWallet and the Consumer Financial Protection Bureau offer accessible tools and courses.
And, parents — start teaching your kids about finance early. By age six, most kids can understand simple finance concepts like buying wants rather than needs and sticking to a budget. Closing the financial literacy gap starts at home.
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