In today’s complex economic landscape, teaching young people to manage money is a necessity. The pandemic exposed financial vulnerabilities across American households, and this generation is watching economic uncertainty unfold in real time amid rising costs and mounting debt.
The good news is that financial education pays off — literally. The World Economic Forum found that families whose children received financial lessons saw a 5% increase in credit scores and 26% fewer loan defaults. Americans who grew up with a strong financial education are more likely to get a raise.
While 36 states now require some form of financial literacy education to graduate high school, the stakes remain high. Today’s youth experience instant gratification through digital devices, contributing to Generation Alpha spending an estimated $126 million in 2023-24, including a 113% jump in food-delivery purchases. “Buy now, pay later” options are increasingly popular, and the United States is beginning to incorporate these services into credit scoring, meaning teenage missteps could have lifelong consequences.
Mandating courses alone isn’t enough. Without targeted interventions, we’re setting up an entire generation to learn money management through trial and error — with costly consequences.
What Works
Courtesy of Christine Blake
Christine Blake
A Harvard-affiliated study found that children of lower-income families who live in neighborhoods where repayment norms are stronger develop significantly higher credit scores than similar kids in more unstable areas. That means financial education isn’t only about family or school — it’s also civic, building a financial culture that supports better habits.
We’ve witnessed this impact firsthand through our partnership with the Backbone coalition, where credit unions nationwide are leading the charge in innovative youth financial education. Our nonprofit, community-centered model enables our credit unions to be deeply rooted in communities, offering programs such as:
- Hands-on simulations: Schools collaborate with local credit unions, like Everwise, to offer financial literacy presentations as well as interactive budgeting games and real-life decision simulations. Sessions like these give students a “bite of reality” around financial decisions and use immersive programs to walk students through monthly budgeting decisions that mirror the choices and trade-offs adults face daily. Research shows interactive, hands-on simulations exceed traditional classroom lessons in effectiveness.
- Student-run branches: Cardinal Credit Union operates five high school branches and one at Lakeland Community College, where teens gain real banking experience opening accounts, making deposits and serving peers while reinforcing classroom lessons.
- Youth banking products: Teen checking accounts, savings apps and youth debit cards let young members earn, save and spend under monitored conditions. Some credit unions, like Everwise, offer these accounts to teach kids healthy financial habits to build confidence early. Others offer partnerships — Cardinal’s collaboration with the Cleveland Browns provides themed debit cards and incentives like access to Browns training camp and home game tickets, while their partnership with Bits of Stock rewards students with stock ownership to build wealth.
- Budgeting competitions. Cardinal’s Mad City Money Scholarship Competition creates a 90-minute budgeting challenge where students juggle housing, transportation, childcare and groceries while competing for $25,000 in scholarships.
- Family-focused education platforms. Credit unions, including Everwise, provide free online modules and youth programs that let parents monitor and reinforce good habits.
Through this holistic approach, we’ve fostered stronger parent engagement, earned support from teachers and community partners and increased youth account retention among high school students — all together helping to build lasting financial confidence.
The Stakes
Young adults face complex financial challenges: ballooning student loans, escalating housing costs and a surge of too-easy-to-use financial products. Relying on parents isn’t enough, especially when many struggle with money themselves. Financial illiteracy costs the U.S. economy nearly $500 billion annually.
[Related: Cash, community, possibility]
Beyond school education, we need institutions with expertise, community connections and mission alignment to deliver quality financial education. Credit unions are positioned to fill this role.
Action Steps
Courtesy of Jeff Sobieralski
Jeff Sobieralski
Effective financial literacy requires several elements:
- Universal access: Every student deserves meaningful financial education regardless of location.
- Hands-on learning: Provide simulations, teen banking tools, youth-led programs and real choices.
- Early start: Financial understanding shouldn’t begin in high school — even elementary students grasp saving, planning and choice.
- Family engagement: Embed lessons that create ripple effects in home habits.
- Modern platforms: Deliver money lessons where kids are — online, through peer networks and apps.
Financial education strengthens individuals, families and communities. Making it targeted, hands-on and universal benefits all of us. Because when youth understand money, it pays off for everyone.
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Christine Blake is the president and CEO of Cardinal Credit Union, where she has led the organization’s growth to over $300 million in assets and seven retail locations and six in-school branches since 2010. A champion of financial education, she spearheaded award-winning youth and adult programs and built strong community partnerships, including with the Cleveland Browns.
Jeff Sobieralski serves as financial wellness director at Everwise, where he oversees the online education platform and Personal Finance Program. He supports the design and delivery of financial literacy presentations and equips teams to educate individuals and groups in schools and communities.
