Do you know how a 401(k) or a money market account works? If not, you’re not alone. Research from the International Federation of Accountants reveals a lack of financial literacy among adults costs the United States nearly half a billion dollars annually. Meanwhile, teens are navigating the education system without this crucial knowledge. The research shows only 23% of American teens know how to make a budget, 45% don’t understand 401(k) accounts or retirement savings, and 28% don’t understand taxes. These gaps highlight the need for financial literacy education in schools.
Junior Achievement of Central Indiana recently shared data underscoring that teens genuinely want to learn about these concepts before entering adulthood. In collaboration with research firm Big Village, a survey of over 1,000 teens aged 13 to 17 revealed that 68% would “likely” take a financial literacy class if offered. However, only 31% currently have the option at their schools. Additionally, 60% of teens expressed interest in courses on career readiness and entrepreneurship.
“When you ask adults what they wish they learned in school but didn’t, it usually involves topics like understanding how money works,” said Jennifer Burk, president and CEO of Junior Achievement of Central Indiana. “These findings show that most teens today would like access to this information, but many may not be getting it.”
Junior Achievement offers educational experiences to students from kindergarten through grade 12, as well as young adults, with a focus on financial literacy, career readiness and entrepreneurship. These programs, often available at little or no cost to schools, reach more than 4.4 million students annually across the United States.
Through initiatives like these, Junior Achievement is working to bridge the financial literacy gap and empower the next generation to navigate their futures with confidence.
