We Are Intentionally Setting Our Kids Up For Failure

Why financial literacy matters more than ever in 2026.

America’s education system is actively setting millions of students up for financial failure.

Every year, nearly 4 million students graduate high school. The Class of 2026 will walk across stages this spring fluent in algebra, basic chemistry, and American History…yet many of them will be unable to explain compound interest, don’t understand credit, and have never been taught how to buy stocks. This is a systemic failure.

We are sending young people into adulthood, unable to financially swim and then acting surprised when they drown. Let’s call it what it is: financial illiteracy in America isn’t a personal flaw. It’s an institutional/societal design flaw with real economic consequences.

The Department of Education should be rebranded to The Department of Negligence.

The System Isn’t Broken. It’s Working Exactly as Designed.

At a time when financial security in retirement is shifting from companies (pensions funds) and government (social security) to self-managed savings, we are sending our youth into one of the most complex financial landscapes in history…

…with nothing but TikTok advice and vibes.

While federal and state policymakers debate curriculum politics, the real crisis is hiding in plain sight.

• Nearly 2 in 3 Americans cannot pass a basic financial literacy test

• U.S. household debt hit $18.8 trillion in Q4 2025

• Young adults are carrying record levels of credit card and student loan debt

Globally, the U.S. is falling behind. On the OECD PISA financial literacy assessment, the U.S. ranked 8th out of 20 countries, with 17% of students scoring at the lowest proficiency level. Even more telling, only ~50% of U.S. teens have bank accounts, compared to over 80% in countries like Australia and New Zealand where financial literacy is embedded in education.

Gen Z, in their words, are completely underprepared to manage money. According to recent surveys from WalletHub and Wells Fargo:

• 25% say they lack confidence in their financial knowledge

• 66% believe savings accounts are the best way to invest

• 27% don’t use a budget at all

• ~20% rate their debt management skills as “poor”

• 46% describe their financial lives as “messy”

If we’re serious about fixing this, we have to be honest about responsibility. Ask yourself, what if financial illiteracy isn’t just a societal failure…but a feature?

Policy makers?
They’ve known about this for decades. The U.S. introduced a National Strategy for Financial Literacy in 2006 and updated it after the 2008 financial crisis. And yet, implementation has been slow, inconsistent, and fragmented.

Yes, progress exists. 31 states now require a standalone personal finance course (up from 17 in 2016). But let’s not celebrate too early. New York, the financial capital of the world, still doesn’t require it. That’s like requiring gym class everywhere except where the Olympics are held.

Financial Service Companies?
For banks, credit card companies, and lenders, less-informed customers are often the most profitable.

Customers with low financial literacy are more likely to carry high-interest debt, miss payments, rack up fees, and stay stuck in cycles of borrowing. A financially savvy customer avoids fees and minimizes interest.

Keeping people bad with money isn’t good for society but it’s not bad for business either.

Parents?
They’re possibly the silent co-signers of this crisis.

• 56% of parents avoid talking to their kids about money

• Yet 70% of kids (ages 11–14) say their parents are their most trusted source for financial advice

Let that sink in. The people kids trust most to teach them about money are often the least prepared or most uncomfortable doing it. Silence doesn’t protect kids from bad financial habits it merely ensures they will experience financial struggle.

There is Some Progress to Report

When I launched my financial literacy nonprofit organization, D.R.E.A.M., in 2009, conversations around financial literacy were not common and mainstream. That has changed.

At the same time, the ecosystem around financial literacy has exploded. Today there are corporate-led programs, bank initiatives, nonprofit campaigns, television programming, podcasts, and social media creators all contributing to the conversation. That sheer volume of information marks a significant shift from the mid-to-late 2000s when financial literacy resources were far more limited.

And the early signs suggest young people are already leaning in:

• 56% of Gen Z Americans (ages 18–25) report holding an investment of some kind

• 50% of Americans under 35 have a retirement account, with a median balance of $18,880

• Gen Z begins investing at an average age of 19, compared to age 25 for Millennials

• Nearly 40% of Black Americans owned stocks in 2022, up from less than 30% in 2016, making them the fastest-growing group of new investors

So What Now?

If we keep treating financial literacy as optional or a nice-to-know, we will keep producing financially fragile adults. Here’s the reality - if schools don’t teach money and parents don’t talk about money at home - kids will learn from the internet, music lyrics, or the financial habits they observe.

So yes, this is a call to action. Firstly, if you weren’t aware, April is National Financial Literacy Month, one of my favorite months of the year. It’s an opportunity for all of us to pause and engage more intentionally with our personal finances.

This April I encourage you to start a conversation about money with someone younger in your life. And most importantly, encourage the young people around you to have conversations with their friends about money. Because knowledge today becomes actionable tomorrow.

Secondly, engage your state’s elected officials and local school boards/district officials. Push for mandated financial literacy courses in high school graduation requirements. Demand implementation not just policy headlines. Financial literacy is a core life skill—as essential as reading, writing, and math. And if we fail to treat it that way, we shouldn’t be surprised when the next generation falls into debt early, chases shortcuts to wealth, and struggles to build a solid financial foundation to start a family.

Teaching young people how money works might be one of the highest ROI investments we can make as a society. In the words of philosopher Ermias Joseph Asghedom (better known as Nipsey Hussle)…

…the marathon continues.