Financial literacy should be a required class for students in Elementary school and beyond. It is such an important aspect of life that no person entering adulthood should be lacking knowledge in. Financial literacy is a concept that many people in the United States have little to no education on and it starts to become a potential setback for many people as life goes on. Google defines financial literacy as, “ the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources”. It covers topics surrounding budgeting, understanding interest rates, saving and investing, credit and debt, and identity theft. These are all valuable skills that are needed throughout a person’s adult life and unfortunately it isn't taught as often as it should be in school, if even at all. Identifying the root cause of this absent education can be traced back to a student’s teenage years and observing what classes were taken. More often than not, a financial class was not taken nor provided. There are only 17 states in the US that require a financial class in High School and seven require to be tested on before being able to graduate. A safe assumption can be made that this is where the gap in financial knowledge stems from. What a child learns or doesn’t learn during their early years of education has a potential hindrance on their potential growth into adulthood. A child’s education starts in elementary school with their knowledge developing on a yearly basis. Financial literacy should also follow a similar model. As a student begins their education, financial classes should be a requirement in school and it slowly builds upon itself year after year. If courses such as math and science are instilled to students at regular intervals, the same can be done with financial literacy. It would be beneficial for the US Department of Education to start developing a curriculum that includes financial classes in the hopes of educating students at an early age about personal finance.  

Stressing about finances is not a great feeling. When an individual is unsure about money and how to spend it wisely, a plethora of complications can arise. Multiple studies have shown a link displaying financial stress as a precursor to other troubles such as anxiety, depression, and an impact on long-term decision making. A 2014 poll of 3068 adults conducted by the American Psychological Association reported that 72 percent of Americans stated feeling stressed about money once in the past month and 25 percent said they experienced extreme stress during the past month. The APA continued on and stated that 64 percent of Americans say that money is a significant source of stress in their lives. It is especially true for parents that have children under the age of 18. No parent wants to see their child struggle with unnecessary difficulties when many of these hardships can easily be lessened or even negated through the implementation of financial curriculum during High School and beyond. A young adult during their developing years shouldn't have to stress about money to such a degree when they are barely out of High School. It will increase the chances of the student dropping out of college and prolonging their education due to being overworked and overstressed. When a student graduates High School, they have the option to either head into the workforce or start college. Those that choose to attend college aren’t financially knowledgeable enough to be making such uninformed decisions regarding the next four years and might ultimately end up taking out student loans.

The realm of student loans is a hot topic and maneuvering is cumbersome. Students are presented with so many buzzwords like subsidized and unsubsidized loans, FAFSA, grants, federal work-study, and the list goes on. A lot of time needs to be dedicated to educating students on what avenues are available to them in order for them to make sound decisions concerning their financial future. The expectation of an 18 year old student fresh out of High School to make such life altering decisions is unreasonable when the impact can affect them for decades to come. One wrong move and they might be paying off debt for the rest of their lives. Data from the US Department of Education shows how long it usually takes an individual to pay off their debt is determined by their starting amount. As the amount of debt borrowed increases, so does the length of the payment plan. When looking at the numbers, it’s astonishing to see that it takes some people just as long to pay off student debt as others to pay off a 30-year home mortgage. A comprehensive study from 2019 titled, Money Matters on Campus which was sponsored by AIG Retirement Services, discussed students’ financial background and experience. They surveyed a total of 30,000 college students from 440 colleges in 45 states. The survey concluded that only six out of 10 students have taken or will take loans to cover their education but only 65 percent state they will pay off their loans on time or in full. According to the study, only 22 percent of students felt like they had the knowledge, resources, and capability to pay off their loans in a timely manner. If they had a better and consistent support system, all of their questions would be answered. Not only do college students lack understanding with loans but also with credit. 

Credit cards can either make or break your credit score and history. It is ideal to start a credit history when turning 18 years old or even sooner if possible. Having a good credit score will make borrowing money from lenders much easier and will minimize interest while a low score can make borrowing money a hassle and high interest rates are much more common. Individuals with high credit scores are able to shop around when making big purchases and can leverage their scores to get better rates. Money Matters on Campus reported that 46 percent of the 30,000 students surveyed, had at least one credit card compared to 28 percent in 2012. Of the 46 percent of students with a credit card, 36 percent already have at least $1000 in debt. 

From an outward perspective looking in, it does indeed appear as if students and young adults are struggling with their financial knowledge, however, all hope is not lost. Data has shown that it does seem as young adults continue living their lives, their knowledge does continue to increase. As it can be seen in the data, young adults are starting to slowly expand their financial skillset as they get older. Nevertheless, it’s still paramount that the Department of Education implements a standardized plan to invest in all of our students’ financial futures.