As institutions call for better financial education in schoolrooms, a new study analyzes how the lack of financial schooling impacts confidence.
Research from Edward Jones and Morning Consult find that only 20% of survey respondents reported learning about financial education in school, and 28% say they lack confidence in their financial knowledge as adults.
The findings show that most adults learn about financial education after high school, as 44% were 25 years or older when they gained most of their education on the topic. Meanwhile, 18% never received an education on finances at any age.
Respondents from the survey indicated an interest in improving their knowledge on investing in the markets (28%), debt management (28%) and preparing for retirement (27%). They also noted knowledge gaps in financial caregiving (54%), managing student debt (47%), understanding certificates of deposit (41%) and investing in the capital markets (40%), the research reported.
“Developing greater financial knowledge and confidence has to start earlier in school,” said Vanessa Okwuraiwe, principal at Edward Jones, in a statement. “Our data demonstrates that knowledge builds confidence – for example, roughly 60% of respondents believe they would be more confident in their financial situation with a better understanding of debt management – so it’s our goal to empower individuals to secure their financial futures.”
Reports have analyzed whether financial education in high school poses any impact to future students’ savings. Last year, a TIAA Institute report found no clear evidence that financial education in secondary school improves the likelihood of saving for retirement.
Yet, organizations, and even states, see the positive effects of learning financial education at a young age. Currently, 33 states, including North Carolina, Utah, and Virginia, are shifting their education system to add personal finance courses.
Edward Jones is also offering its own program to increase financial literacy among high school students. Its Financial Fitness digital education platform with EVERFI offers financial knowledge for students and adults and has currently educated over 500,000 learners.
SEE ALSO:
- New Participant Financial Education and Engagement Platform Launched at SageView
- Financial Education in High School Doesn’t Impact Retirement Savings in Adulthood
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
