It should hardly come as a surprise to experienced 401(k) advisors that a problem with financial literacy (or lack thereof) exists in this country. The solution is to make it a part of the standard education curriculum, PwC argues in a new report—call it reading, writing, arithmetic, retirement income.
“Minorities, women and the least educated have some of the lowest financial literacy rates in the nation, a major concern for businesses that see attracting a more diverse workforce as a business imperative,” the company writes.
It notes that educators see the value of teaching students to budget, prepare for the future and become better financial decision makers, but they need more support to adequately teach these skills.
The company offers the following 10 observation about the issue, some good, some bad.
1. Teachers don’t feel comfortable teaching financial education. Only 31 percent feel “completely comfortable;” 51 percent feel “moderately comfortable” and 18 percent feel “not comfortable at all.”
2. Few K-12 teachers incorporate financial education into their classroom. Only 12 percent address personal finance in their lessons.
3. Four primary barriers exist. Many teachers lack appropriate curriculum, qualifications, take-home materials, and feel that financial education isn’t seen as a critical skill for college and career readiness.
4. Teachers want more support. Teachers’ needs include curriculum materials and professional development. Respondents often crave time off and funds to attend related professional development.
5. Teachers seek resources on their own. Respondents are often not provided with materials they need so they find them in other sources, such as free websites or from other teachers.
6. Financial education should start earlier. 67 percent of teachers believe it should start in elementary school.
7. Teachers worry parents/guardians aren’t doing their part. 65 percent of teachers feel that it is at least somewhat unlikely that their students are receiving any financial education at home.
8. Millennials are champions of financial education. The younger generation of teachers is more likely to think that instruction should come primarily from the classroom.
9. Millennials are better at seeking funds than their more experienced colleagues. Less experienced teachers are twice as likely to seek money for financial education.
10. Educators cite tremendous benefits in providing financial education to young people. Kids who receive education earlier are better at budgeting, planning for the future, understanding debt and decision making.