How to Teach Financial Literacy: Research and Resources
For Financial Literacy Month, explore our most exciting financial education research and resources for teachers.
When we surveyed 32 high schoolers and young adults in Washington state last year, 84% of student participants said they believed that personal finance classes should be mandatory in high schools, yet only 56% had received any type of financial education at school.
Mandated financial literacy coursework is becoming more common in the United States, but it is not yet universal. According to the 2022 Survey of the States released by the Council for Economic Education, 23 states now require students to take a personal finance course to graduate. In March 2022, Florida became the latest state to require financial education for high schoolers.
“Students want to make informed financial decisions for their future. They want to know how to finance college, budget, buy a home, pay taxes, invest in the stock market and manage debt when they leave high school,“ said Lisa Castaneda, CEO of foundry10.
Youth we’ve interviewed in our research understand how financial education can create direct value for them. The 2020 U.S. Financial Literacy and Education Commission Strategy report describes financial education as the key to “sustained financial well-being, in which people can fully meet current and ongoing financial obligations, can feel secure in their financial future, and are able to make choices that allow enjoyment of life.”
In that spirit, we are sharing a foundry10 Financial Literacy Month round-up of our favorite financial education research and resources for teachers.
How to Teach Relevant Financial Education
When asked where they would go to find answers about personal finance, zero percent of student participants in our study Filling Financial Education Gaps: What We Can Learn From Youth Perspectives on Financial Education said they would go to teachers or school for financial advice. Low youth engagement in financial education may not reflect a lack of interest in the topic, but rather a combination of logistical challenges and concerns about the relevancy of the curriculum.
“I was really surprised to see that, of the students who had taken a financial education course in school, only about half reported being able to apply anything they learned to their own lives,” said Allie Tung, lead author of the foundry10 study. “Based on these findings, we suggest that educators speak directly with students to understand which personal finance topics will be most relevant and impactful for them.”
Here are a few research-based tips to make financial literacy education more relevant to your students:
- Provide opportunities for youth to share areas of finance that are of
concern or interest to them. This can allow educators the chance to
address or introduce topics relevant to students’ current lifestyles. - Highlight information that can make an immediate financial impact
for youth. For instance, students hear a lot about student loans but
often from a variety of sources and not in ways that they can easily
understand. Pointing out financial aid timelines and providing accessible resources about loans and other kinds of aid helps calm students’ nerves and allows them to make informed decisions about paying for further education. - Speaking broadly with youth about the timing and relevance of
financial topics can help frame their ideas around the timing of
various milestones. For example, high school students may not
need to know detailed information about retirement right now, but it is
important that they understand that investing in a retirement fund when
they are young adults can make a huge difference.
For more information on how to identify quality instructional materials on personal finance, review this checklist for evaluating financial literacy curriculum from the Financial Education Initiative at the University of Chicago.
How to Teach Inclusive Financial Education
Research shows that women and people of color are often marginalized when it comes to financial education access and empowerment. It is important to set up youth for success by talking directly about equity and access issues and providing pathways for them to learn more.
Socioeconomics
Research indicates that in districts that have financial education requirements, students exhibit more informed behavior around college financing, especially those from lower-income families. In districts without requirements, there is a 15-point gap in access to financial education between kids from lower-income versus wealthier families.
Gender
When designing financial education courses, educators will want to consider the impact of gender on learning and empowerment opportunities. A large body of research focuses on gender as an important factor in financial literacy, financial confidence/self-efficacy, and financial risk behaviors. Research suggests that gender differences in financial matters may result from a variety of social issues such as lack of access to financial education and gender stereotypes about women’s role in finance.
Findings from Women and Money, a study we conducted with foundry10 partner Savvy Ladies on the financial attitudes of adult women, showed how crucial it is for women to be not only financially literate but also confident about their financial knowledge and decision-making abilities.
Here are a few research-based tips to make your financial education lessons more inclusive:
- Explore what types of financial information youth have already been
exposed to. There is likely a wide variety in the amount and types of
financial education that students have received. Instead of assuming
what youth might or might not know, hear directly from them about their
past experiences. - Openly discuss barriers that youth may encounter when considering their financial education and financial options. The more open we can be with youth about potential barriers, the more likely they are to be prepared to overcome them and advocate for themselves.
- Talk to students about self-advocacy with regard to financial
matters. A significant portion of financial education is not just the terminology and technical knowledge but knowing where to go, who to talk to, and how to get reliable information for oneself.
Learning Financial Education Media Literacy
We are currently studying how effective students are in distinguishing between useful and misleading financial advice found on TikTok and what information they use to make these judgments.
We hope the results of this study can be used to describe the quality of financial advice found on TikTok and to help students better understand and evaluate financial information they see on social media.
More Financial Literacy Teaching Resources
To learn more about teaching financial education, check out the following resources.
Make Money Make Sense Toolkit
This toolkit was designed by the University of Minnesota for educators and professionals to help youth learn about making financial decisions. Research shows that youth learn about finances from two main sources: socialization from influential people in their lives and education about financial content. (Make Money Make Sense Toolkit)
Invessential Courses and iOS App for Teens
foundry10 high school intern alum Vineel Bhat built a free iOS app and released pre-recorded video courses to teach other young people about investing. (Invessential)
National Standards for Personal Financial Education
The Jump$tart Coalition and Council for Economic Education (CEE)’s shared vision of a single, unified set of standards that will guide educators, curriculum writers, policymakers, and other financial education stakeholders across the country to promote effective, comprehensive financial education for K-12 students. (National Standards for Personal Financial Education)
National Education Association Teaching Financial Literacy Resources
Lessons, activities, learning games and other resources for teaching financial literacy from the National Education Association. (NEA)
Learn more about foundry10 Financial Education research.
