Student Readiness 
Depends on Personal 
Financial Education 

 

For years, high schools have measured student readiness by credits earned, tests passed, and post-graduation plans.  

But increasingly, students are stepping into adult responsibilities and facing financial decisions without the knowledge or skills needed to navigate them—no matter how strong their academic preparation may be. 

Personal finance education fills a readiness gap transcripts can’t show. It prepares students not just to graduate, but to make sound decisions after graduation and into adulthood. 

Learning by Default 

High school students are already observing—and in many cases participating in—the same financial systems adults use. When schools don’t teach about money intentionally, students learn by watching adults, absorbing advertising and navigating digital platforms designed to make spending money easy. Long before they have the language to evaluate those choices, they’re forming ideas about how money works. 

This shift is happening earlier than many schools realize. According to a 2025 Consumer Financial Protection Bureau report, 53.6 million U.S. consumers took out at least one buy now, pay later (BNPL) loan in 2023, a 12% increase from the year before.¹ 

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These products are marketed in the same online spaces students navigate daily. Federal regulators warn that many digital platforms are intentionally designed to reduce friction and speed up decisions.  

The Federal Trade Commission describes these tactics as “dark patterns,” noting that they trick consumers into buying their products.² Over time, repeated exposure to these messages reinforces a consumer culture that prioritizes convenience over financial planning and contentment. 

Exposure vs. Understanding 

Despite unprecedented exposure to financial messaging—much of it rooted in consumer culture that promotes spending, convenience and constant upgrading—students’ understanding of how money works doesn’t translate into real-world readiness. 

One way researchers measure financial understanding is through the TIAA Institute–GFLEC Personal Finance Index, developed by Stanford’s Global Financial Literacy Excellence Center. The index assesses practical knowledge across eight areas of everyday financial decision-making—including spending, saving, borrowing, investing and managing risk. In the 2025 edition, U.S. adults answered just 49% of practical financial questions correctly. Gen Z adults scored even lower at 38%.³ 

The takeaway is clear: Constant exposure to money isn’t producing competence—for anyone. If adults struggle after years of experience, it’s costly to expect students to figure it out on their own.  

Timing Is Everything 

Personal finance education lets students learn how money works intentionally while habits are still forming—before consequences become harder to reverse. It also coincides with key milestones that require students to think critically about money for the first time. 

First Paychecks and Early Habits 

For many students, high school is when they earn their first real income by working a part-time job or picking up summer jobs. 

These students are already making decisions about spending, saving and prioritizing—often without a plan. This is a critical moment to teach students how to budget, plan ahead for irregular expenses, and understand that every paycheck represents choices—not just purchasing power. 

College and Career Planning 

High school is also the point when students start thinking seriously about what comes next—whether that’s college, career training or going straight into the workforce. How well they understand money often determines which path feels realistic. 

A recent survey from Junior Achievement and Citizens found that more than half of teens say they feel unprepared to finance their future, including education and other major life decisions.4 When students are unsure how money works, it can limit the options they’re willing to consider, including whether a four-year degree feels within reach. 

Learning Money Management Before Consequences Compound  

High school is a narrow window of time when students can learn sound money habits before they face financial decisions with lasting consequences. 

Teaching personal finance during this time gives students a chance to practice everyday skills, like: 

• Creating a plan for each paycheck 
• Separating needs from wants 
• Saving an emergency fund 
• Paying for things in cash 
• Thinking long-term with money 

Waiting to learn these skills after graduation often means these lessons come only after mistakes show up, when options are fewer and it’s harder to recover. 

Readiness Is on the Line 

When personal finance is taught intentionally during high school years, students begin to see how everyday choices connect to long-term goals—before mistakes become harder to undo. Personal finance isn’t an add-on. It’s a core part of what readiness looks like today, especially in a culture that constantly encourages spending now and thinking later. 

The stakes are higher than ever. Teaching personal finance with clarity and purpose gives students something consumer culture can’t: a clear plan, a sense of control, and the confidence to make decisions based on long-term stability rather than short-term pressure.