When parents talk to their kids about the way things were “when I was your age,” they often argue that they had it much tougher. What kid hasn’t heard a story about how their mom or dad had to walk to school every day, usually through deep snow?
In terms of the economy, however, parents can no longer pretend that they had it worse. Today’s kids are facing a scary economic landscape, in which most essentials — housing, education, healthcare, and childcare — are rising rapidly, while earning potential is on the decline.
A recent study on financial trauma conducted by Credit One Bank shows Gen Z, which ranges from age 13 to 28, is already suffering from their economic struggles. Nearly 60 percent of respondents from that generation report feeling stressed or anxious about their finances.
What’s the fix for the younger generation’s fears regarding the state of the economy? The answer lies in financial literacy.
As a financial coach who has helped families and young people across the nation develop the skills needed to build generational wealth, I’ve seen the transformative power of financial literacy on countless occasions. Today’s kids need to be taught that they can take control of their financial future, regardless of what is happening in the economy. And the earlier we start, the better.
Where are we failing our youth?
Our schools are giving kids the building blocks they need for financial literacy — adding, subtracting, comparing, and evaluating. But they aren’t explaining to kids how money works in the real world or how they can make money work for them.
Some steps have been taken to address the problem. A growing number of states — 27 as of April 2025 — have made personal finance education a requirement in high school. However, introducing basic financial literacy to students as they are preparing for graduation is too little, too late.
Consider the fact that US adults scored an average of 48 percent on the World Economic Forum’s 2024 test of financial literacy, which was down from 52 percent in 2020. Specifically, the test found Americans were most comfortable with borrowing, saving, and consuming, while they struggled to understand the significance of financial risk.
What we’re not acknowledging is that a bit of learning, as opposed to an empowering understanding, is a dangerous thing. Our students are leaving high school with just enough knowledge about the financial system to get themselves in trouble.
If you need proof of the struggles young people face due to their lack of financial literacy, consider that Gen Z’s average credit card debt increased nearly 70 percent from 2020 to 2024, rising from $1,947 to $3,266. At the average credit card interest rate of 28.7 percent as of March 2025, a credit card user making the minimum monthly payment, which a record number of debtors are doing, will take over 30 years to pay off $3,266. It’s no wonder many young people feel stressed about their finances.
Why immediate action is needed?
Today’s kids are moving toward a future marked by complexity that we’ve barely begun to understand. Artificial intelligence is changing everything, including bringing major disruptions to the job market. Many careers kids dream about today may not exist by the time they graduate.
Starting kids early with financial literacy training gives them a fighting chance. It sets them on a trajectory that allows them to confidently navigate a challenging economic future, invest wisely, manage debt effectively, and stay in control of their financial future.
I’ve seen in the lives of my own children and those of so many I’ve coached how financial literacy empowers kids to take ownership of their future and build something meaningful. Instilling entrepreneurial values in them today — resilience, creativity, leadership, and risk-taking — will shape how they tackle the world tomorrow.
How can we make a difference?
Our kids can’t fix this problem on their own. They need parents, educators, and policymakers to get involved.
The most crucial step is making financial literacy available at a much younger age. By high school, students have already established most of the habits that will drive their financial future. We must ensure that teachers and other mentors intentionally build habits and practices that empower financial success.
Elementary school is not too early to start. Kids as young as four years old can learn about earning, saving, and distinguishing between wants and needs. As they move on to middle school, they can understand budgeting, entrepreneurship, and how a business operates. Credit, investing, taxes, and inflation can be presented in high school.
Today’s kids are inheriting a myriad of financial challenges. By failing to train them in financial literacy, we keep them from the skills they need to find solutions.
Now is the time to make a shift. Rather than spending our kids’ future, let’s invest in it by making financial empowerment a priority for every child.
