Financial literacy is declining primarily due to the lack of financial education. The gap between the haves and the not haves is closely related to rates of financial literacy proving that this issue impacts America as a whole. If changes to our financial education system are not made, rates of debt and the financial crisis will only continue to soar.
Despite some having basic knowledge of spending a truly, “literate” consumer will more likely make better decisions around borrowing, saving and buying financial products.” This includes knowledge about saving, investing and retirement funds that many Americans fail to even approach leaving them helpless on a rainy day. “Four in 10 working U.S. adults would not be able to scrape together enough money in a month to cover the cost of a midsize budget emergency . . . according to a 2017 report.”
One of the biggest markers of this decline is the rising rate of student debt. It is documented that student debt has more than doubled in the last decade. The country will only continue on the path of financial decay unless a change to financial education is made. Personal finance courses are important for everyone because they ensure that individuals do not make mistakes early on that dictate a life of financial struggle. Studies have shown that a “15-year-old American students who hold a bank account scored 40 points higher in financial literacy than students without one”. By integrating financial education into every student's life will help bring out a country out of financial decay.
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