US Treasury Report shows the importance of financial education

by brass media

by. Kayla Byers

An April 2014 report from the US Treasury Department illustrates what many of us already knew anecdotally: financial education in schools works. The difference is that this time, they have the study to back it up.

As we continue to recover from the recent economic crisis, a greater emphasis is being placed on properly equipping young people to make solid financial decisions throughout their lives. In March of this year, the President’s Advisory Council on Financial Capability for Young Americans (PACFCYA) met for the first time, again illustrating the importance of getting financial knowledge to young adults. While the new treasury study focused on 4th and 5th grade students, the main lesson — that financial education in schools is effective — is applicable to high school students as well.

The number one insight from the US Treasury Department study was that bringing financial education into classrooms, even just in small amounts, creates greater financial knowledge among students. Additionally, and perhaps more importantly from an ROI perspective, it was linked to a better attitude towards financial education in general.

At a time when consumer confidence in financial institutions has declined 46 percent since 2008, bettering your image and providing financial knowledge by taking financial education into the schools certainly seems like a win-win.

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