While more high school students can access financial literacy courses today, a new study finds persistent knowledge gaps surrounding finances and retirement.
The research, conducted by MissionSquare Retirement’s Foundation and Junior Achievement, a non-profit organization that provides educational courses for children and teens, found that while the number of high schoolers who have taken personal finance or financial literacy courses in school are up (45% today compared to 31% in 2024), many are unaware of key data points.
For example, 43% of teens describe an interest rate of 18% on debt as “manageable,” and say it can be paid off over time. Further, 80% of teens are unaware in what a FICO credit score is or do not fully understand its purpose.
Experts say the findings show a need for evidence-based education that focuses on firsthand experiences. “More states are adopting financial literacy requirements, but this research would indicate that not all of the courses offered are having the desired impact on student knowledge,” said Tim Greinert, president of Junior Achievement USA. “It’s important that financial literacy courses use evidence-based approaches to positively affect knowledge, attitudes, and behavior, and go beyond simple online courses that may or may not promote those learning outcomes.”
The research also shows that while teens are already starting to visualize retirement, most agree that savings for it can wait. Sixty-eight percent of respondents to the study say that saving for retirement is “something they can think about later in life,” with 36% saving money for their future, 23% allocating for education, and 13% choosing to invest instead.
Still, almost half (42%) of teens surveyed described feeling “terrified” in the potential of not saving adequately for future needs and goals.
“There is so much for teens to absorb when learning about finances and planning for their future, they often struggle to envision what lies ahead,” said Andre Robinson, president and CEO of MissionSquare Retirement. “By offering engaging programs that boost their financial knowledge and decision-making skills, literacy courses will help inspire them to build a strong foundation of lifelong financial resilience and success.”
The Junior Achievement and MissionSquare Foundation Teens & Personal Financial Survey includes responses from 1,000 teens ages 13 to 18.
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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.
