Why Financial Literacy Month Matters

Explore why Financial Literacy Month matters in 2024 as 27 states now require personal finance education, and learn how financial knowledge supports both personal well-being and economic resilience.

What to Know: 

• 27 states now require students to take a standalone personal finance course before graduating from high school.

• 38% of U.S. adults said they lost $500 or more in a single year due to lack of financial knowledge.

• Only 33% of Americans could correctly answer at least four out of five questions on a basic financial literacy quiz.

• 81% of Americans support banning medical debt from appearing on credit reports.

• 88% of Americans support protecting Medicare recipients from inaccurate or illegal medical bills.

April is recognized as Financial Literacy Month—a national observance aimed at raising awareness about the importance of financial education and helping Americans improve their understanding of essential financial concepts.

According to Next Gen Personal Finance (NGPF), as of 2024, 27 U.S. states now require students to take a standalone personal finance course before graduating from high school. This marks a significant increase from previous years, reflecting a growing national consensus that financial education is essential for student success beyond the classroom.

The need for financial literacy has grown alongside the complexity of the U.S. economy. From managing credit and student loans to understanding mortgages, savings plans, and retirement options, Americans face increasingly complicated financial decisions. A 2023 survey by the National Financial Educators Council found that nearly 38% of adults said a lack of financial knowledge cost them at least $500 in 2022.

What is Financial Literacy?

Financial literacy contributes to both personal financial well-being and overall economic stability. Consumers who understand interest rates, debt management, and savings strategies are more likely to make informed decisions, avoid predatory lending, and participate in long-term wealth-building. This, in turn, can lead to more resilient local economies.

Federal agencies such as the Consumer Financial Protection Bureau (CFPB) and nonprofit organizations including the Jump$tart Coalition and CEE continue to provide tools and curricula to support financial education. Initiatives include classroom lesson plans, online courses, and awareness campaigns to help students, parents, and educators build foundational skills.

However, national surveys show that many Americans still lack basic financial knowledge. A 2022 FINRA Investor Education Foundation study revealed that only one-third of Americans could correctly answer four out of five questions on a basic financial literacy quiz covering interest, inflation, and risk diversification.

Why Does Financial Literacy Matter? 

Financial literacy directly affects an individual's ability to make informed decisions about earning, spending, saving, borrowing, and investing. Households with higher financial knowledge are more likely to avoid high-interest debt, maintain emergency savings, and contribute to long-term financial stability.

According to national surveys, a significant portion of Americans struggle with basic financial concepts, such as how interest accumulates or how credit scores are calculated. This knowledge gap correlates with increased financial stress, delayed retirement readiness, and limited access to affordable credit.

At the policy level, expanding access to personal finance education—particularly through standalone high school graduation requirements—has been linked to improved credit outcomes among young adults. States that have implemented such mandates have seen measurable improvements in credit scores and reduced delinquency rates within just a few years.

Financial literacy is also a workforce issue. As automation and gig work reshape the labor market, individuals must manage irregular income streams, navigate complex benefit systems, and make independent financial decisions more frequently than in the past. A strong foundation in personal finance supports not only individual well-being but broader economic resilience.

Wrap Up

Financial Literacy Month encourages legislators, educators, and community leaders to support long-term solutions in addition to raising awareness.

These include:

• Expanding personal finance education in K-12 schools nationwide

• Ensuring equitable access to financial literacy resources in low-income and rural areas

• Encouraging public-private partnerships to scale effective education programs

• Improving transparency around financial products and fees.

As financial systems evolve, so too must the tools used to prepare Americans to navigate them. Financial Literacy Month serves as a reminder that knowledge is not only empowering—it is essential.

For more resources, visit councilforeconed.org/financial-literacy-month.