Financial Literacy Education: Impact on Post-Secondary and Working People
Financial literacy education equips individuals with the knowledge and skills to make informed financial decisions throughout their lives. Numerous studies have examined the impact of financial literacy education on post-secondary school and working people, highlighting its positive influence on various financial outcomes.
Here are some key statistics:
Improved financial knowledge and behavior: Studies consistently show that financial literacy education leads to higher financial knowledge scores and improved financial behaviors, such as budgeting, saving, and debt management. For example, a 2020 study by the Jump$tart Coalition found that students who took a personal finance course scored 17 percentage points higher on a financial literacy test than those who did not. (www.financialeducatorscouncil.org)
Reduced debt: Financial education can help individuals make better borrowing decisions and manage debt more effectively. A 2017 study by the Consumer Financial Protection Bureau found that young adults who received financial education were less likely to have delinquent credit card debt or high-interest rate loans. (www.debthunch.com)
Increased savings: Individuals with higher financial literacy tend to save more money. A 2019 study by the National Endowment for Financial Education found that people who participated in a financial education program increased their savings by an average of $2,700 over 12 months. (https://www.nefe.org/)
Improved credit scores: Financial literacy education can help individuals build and maintain good credit scores by teaching them responsible credit management practices. A 2018 study by the Federal Reserve Bank of New York found that young adults who received financial education had higher credit scores five years later than those who did not. (fccu.org)
Reduced financial stress: Financial literacy can help individuals feel more confident and in control of their finances, leading to reduced financial stress. A 2021 study by the FINRA Foundation found that participants in a financial education program reported a significant decrease in financial stress after completing the program. (https://www.finrafoundation.org/)
Overall, the evidence suggests that financial literacy education is a valuable investment for both individuals and society. By equipping people with the knowledge and skills to make sound financial decisions, financial literacy education can improve financial well-being, reduce financial stress, and contribute to a more stable and prosperous economy.