Improving Financial Literacy in Students through Personal Finance Courses

Recent Junior Achievement surveys indicate that students finishing financial literacy courses sometimes grapple with fundamental financial concepts.

Role of Personal Finance Courses in Improving Financial Literacy

As of now, 27 states mandate financial literacy courses, and research highlights their value. A study by the Financial Industry Regulatory Authority’s (FINRA) Investor Education Foundation pointed out that high school students who have taken personal finance courses have improved credit scores and decreased debt delinquency rates in their early adult life. However, there seems to be a gap in the effectiveness of these courses.

Addressing the Gaps in Financial Literacy Education

Results of a recent survey by Junior Achievement showed that many students who’ve completed financial literacy courses still found it challenging to answer basic financial questions, like understanding what a credit score is or recognizing a high-interest rate loan. Also, many financial literacy programs for teens tend to concentrate only on personal finance basics, sidelining real-world experiences.

“We must expand beyond basic concepts and start addressing practical applications,” Monica Goldson, President and CEO of Junior Achievement of Greater Washington, highlighted. She suggested incorporating lessons on emotional spending, discussing long-term financial planning, and understanding the psychological impact of being in debt.

Implementing Real-World Financial Education

In Maryland’s Montgomery and Prince George’s Counties and Fairfax County, Virginia, Junior Achievement provides a personal finance curriculum for middle school students called JA Finance Park. This program focuses on practical, role-playing personal finance activities. Students are assigned a persona with a career, salary, credit score, and family situation and must make critical financial decisions based on their assigned personas.

Starting Financial Education at Home

Goldson also advocates for initiating personal finance education at home during the early stages. As teens are naturally curious, they can learn a lot about personal finance when their questions about family finance are honestly answered, even if it feels awkward.

“When your child sees your pay stub that includes healthcare, taxes, social security, and retirement account contributions, it encourages them to ask questions,” Goldson explained.

Teenagers are also aware if their family is facing financial hardships. Letting them learn from their parent’s financial struggles or mistakes can also prove to be valuable.

Financial Worries among Teens

A Junior Achievement survey conducted in February involving 1,000 13 to 18-year-olds revealed that 42% of teens are “terrified” they won’t have enough money to cover their future needs and goals. However, a mere 36% stated they save a part of any money they receive for their future.

For regular updates on personal finance education and financial literacy, sign up here.

© 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

Read More US Economic News