Study Validates the Effects of Well-Implemented Financial Literacy Programs on Young Adults

Financial literacy is quickly becoming a skill necessary for leading a financially stable life. While pre-existing research indicates areas of concern when it comes to financial literacy, there is still widespread skepticism about effective ways to attack this growing pandemic. Earlier generations operated under the belief that discussions of finances should be kept private, resulting in a knowledge gap that has left millennials navigating through the muddled waters of money management. With the cost of education on the rise, a growing need for a college degree, and easy access to debt via credit cards and personal loans, young adults are faced with the consequences having poor financial awareness.

Fortunately, several states have enacted legislation mandating financial literacy programs in high schools. These mandates have been implemented in an effort to address low levels of financial literacy amongst the nation’s youth and help educate them about money management. A recently published study by the Financial Industry Regulatory Authority (FINRA) highlights the effect of these mandates on credit scores and delinquency rates among young adults, ages 18-22, in Idaho, Georgia, and Texas.