Oh, Millennials. A generation berated at nearly every turn, at times we almost feel sorry for them. This isn’t one of those times.
In a short survey on basic financial literacy topics, MassMutual learned only 17 percent of 25- to 40-year-olds were able to answer all five questions correctly.
The questions were based on the MassMutual Foundation’s FutureSmart Digital program, a free interactive experience that promotes financial education among middle and high school students.
“The survey results underscore that many young adults lack the basic financial knowledge needed to make informed choices and there is a critical and growing need for youth financial education,” Dennis Duquette, president, MassMutual Foundation, said in a statement.
FutureSmart program participants are subjected to real-life scenarios and are asked to make choices about saving, job planning and budgeting in order to achieve financial goals.
“[It] reaches children during a pivotal time when they are establishing lifelong habits so they can achieve the financial well-being needed to build a more promising and secure future,” explained Duquette.
Proof positive such a program is beyond needed, MassMutual points out that debt is the biggest financial burden faced by middle-class families and younger workers. Moreover, according to its Financial Security Study, “55 percent of people don’t feel they have the financial knowledge to properly manage their finances.” And in a poll conducted earlier this month, nearly three-quarters of parents of recent college grads said they wish they had taught their children more about money matters.
Working toward a better tomorrow, FutureSmart has already educated one million students, with the goal of doubling that amount by 2020. Upon completion of the program, MassMutual said students’ financial knowledge improved by an average of 67 percent.
Even better, “based on pre- and post-assessment data collected in the 2016-2017 academic year…25 percent of [participating] students who hadn’t previously talked to their parents about finances reported that they were discussing financial topics covered in the course,” MassMutual noted in its report.
Jessica Claeys is an editor, writer, and graphic designer, who has been creating both print and digital marketing and communications content for 10+ years.
Jessa Claeys is a licensed insurance producer in the state of Colorado and an insurance editor for Bankrate. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Jessa has over a decade of experience writing, editing and leading teams of content creators. Her work has been published by several insurance, personal finance and investment-focused publications, including BiggerPockets, 401(k) Specialist, BP Wealth and more.