Why High School Financial Literacy Can’t Wait Until College
By Emma Zande
Fall 2025 Intern
For many students, college is their first experience with total financial independence—and simultaneously, it comes with some really big financial decisions. They need to make decisions about student loans, effectively managing their personal finances to pay for bills and necessities, and even whether the financial return of a degree is worth the investment into it.
These decisions are huge and will have ripple effects throughout the rest of their lives. Therefore, it’s super important that students graduate from high school with a comprehensive understanding of finance, and how to make the best decisions for them. Unfortunately, less than half of the adults in the United States are financially literate.
What is Financial Literacy
Financial literacy is the ability to understand the basics of finance. It’s the skillset needed to make informed decisions regarding personal finance, debt, and savings. People with higher levels of financial literacy are able to understand and effectively use financial skills like budgeting, saving, managing debt, and investing to make informed decisions for personal financial well-being and to navigate the economy, ultimately building financial security and independence.
Research has shown that people with lower financial literacy are more likely to spend more money than their income, less likely to set aside emergency funds, and less likely to have a retirement plan or retirement account. They are also more likely to incur late payment fees, use credit cards for cash advances, exceed credit limits, and borrow money from non-banking institutions, such as pawn shops or ‘pay-day’ loan businesses.
Financial literacy is a life skill that allows us to practice safe and beneficial financial habits and contributes massively to long-term financial well-being and security.
How Do K-12 Students Learn Financial Literacy?
These skills aren’t something that students need to learn through trial and error—especially when error can have lifelong consequences. In fact, students can begin developing financial literacy as early as two years old, when they begin to count coins, and can start to form financial habits as early as five years old.
Although all 50 states plus Washington, D.C., include economics in their K-12 social studies standards, only 30 states require students to complete a standalone financial literacy/ personal finance class to graduate. This has a severe effect—many of the countries with higher average financial literacy are those with national programs and robust financial education in schools.
Mandatory financial literacy classes provide students the opportunity to learn about earning income, spending and saving, investing, managing credit and debt, and managing risk. In these courses, students gain a foundational understanding of personal finance, allowing them to be exposed to these topics before they first experience financial independence. And these courses have been proven effective—research shows that teaching financial literacy in schools has positive effects on students’ financial literacy and economic behavior long term.
Won’t They Learn That in College?
For many students, forming an understanding of personal finance can’t wait—in fact, according to the Bureau of Labor Statistics, 22.5% of high school students are employed. For many, working a job provides spending money for a social life. For others, working is necessary to help the family make ends meet or to save for college. Regardless of the reason, comprehensive financial literacy programs can help students to manage their income wisely while in school and begin creating healthy savings and investing habits to get a jump-start on their financial future.
Likewise, fewer young people are enrolling in college each year, for a multitude of reasons. Rising tuition costs and interest rates are causing students to question the value and affordability of college. Likewise, fewer Americans see a bachelor’s degree as a requirement for a good job, and many are drawn to other opportunities in the workforce. Therefore, many students need to learn and gain financial literacy skills before they graduate from high school.
The Big Picture
Financial literacy is about giving students the tools to make smart financial decisions that can impact the rest of their lives. Students who graduate with a solid understanding of personal finance are better equipped to handle income inequality, plan for major life decisions, and avoid common money pitfalls like overspending or accumulating unnecessary debt.
It also helps students develop sustainable spending habits. Knowing the difference between wants and needs, and thinking critically about purchases, can prevent overconsumption and trend-driven buying. These habits don’t just protect a student’s wallet; they are also hugely important to forming environmentally friendly consumer habits.
Financial literacy has benefits beyond the individual, too. People who understand saving, investing, and debt management are less likely to rely on high-interest loans or fall into financial crises. That stability creates ripple effects, reducing stress and financial strain across families and communities.
Ultimately, financial literacy is about empowerment. It gives students confidence to make choices that work for them, whether that’s deciding on college, entering the workforce, starting a business, or planning for the future. By teaching these skills in high school, we’re giving students the tools to create financial security and independence that can last a lifetime.
Schools, parents, and educators all have a stake in setting up students for success—academically, emotionally, and financially. By teaching young people how to manage money, prioritize mental health, and build healthy downtime routines, we’re giving them tools that will help long after high school.
That’s where partners like Publishing Solutions Group, with in-depth experience in educational content and publishing, can play a role. Whether through curriculum development, supplemental guides, or resources that encourage self‑care and financial literacy, organizations like PSG can help embed these lessons into what students see and learn.
Photo by Micheile Henderson for Upsplash
