April: why Financial Literacy Month matters
Photo by Max Fischer
April holds a special place in the financial education landscape. It is officially recognized as Financial Literacy Month in the United States. The designation reflects America's national commitment to raising awareness and supporting individuals in developing the financial skills necessary for daily life and lifelong well-being. However, while awareness is increasing, measured financial literacy levels remain stagnant. More than a decade of data shows that half of U.S. adults struggle to grasp core financial concepts.
The critical need for financial literacy
Financial literacy is the knowledge and ability to apply financial skills, including budgeting, saving, borrowing, investing and decision-making, to achieve financial well-being. Yet, national studies dating back to 2018 indicate a persistent gap in knowledge and skills. More than a decade of surveys conducted by FINRA and GFLEC show no significant improvement in financial literacy levels across the U.S. Since 2009, the average number of correctly answered financial literacy questions has declined, highlighting persistent financial knowledge and skills gaps.
A key initiative tracking financial literacy trends is the TIAA Institute-GFLEC Personal Finance Index (P-Fin Index), a joint effort by the TIAA Institute and GFLEC. The 2024 report highlights that financial literacy remains low, with only 48% of personal finance questions answered correctly by U.S. adults. The study also underscores significant disparities across demographics, with lower financial literacy among younger adults, women, and those with lower incomes. The report further reveals that lower financial literacy correlates with higher financial distress, poor retirement planning, and greater reliance on high-cost borrowing. These findings reinforce the urgency of strengthening financial education efforts at all levels.
Beyond the fundamentals
Financial literacy goes beyond the cores of budgeting, saving, borrowing and investing. It also includes:
Earning & Income Management – Understanding income sources, taxes, and maximizing earnings potential
Spending & Smart Consumerism – Making informed purchasing decisions and distinguishing between wants and needs
Credit & Debt Management – Managing credit scores, understanding interest rates, and avoiding predatory lending
Risk Management & Insurance – Recognizing the importance of insurance to mitigate financial risk
Retirement & Long-Term Planning – Preparing for financial security in later years through pensions and investment strategies
Tax Literacy – Understanding tax obligations, deductions, and optimizing financial strategies
Financial Decision-Making & Behavioral Finance – Recognizing biases and emotional influences on financial choices
Digital & Banking Literacy – Navigating modern financial tools and ensuring online financial security
Are efforts to improve financial literacy working?
Governments and private organizations have launched numerous initiatives to address the issues. For example, schools across the U.S. and Canada are integrating financial literacy into curricula. However, implementation remains inconsistent and often lacks depth. Private sector efforts make some impact, but programs typically operate at a micro or regional level. While national organizations have a broader scope, their impact is often limited in reach and effectiveness.
Our solution
In 2014, we saw the need to elevate financial literacy for kids and young adults, while they're in school, placing financial literacy alongside math, science and other core curricula in importance.
We identified credit unions as the ideal national partner in U.S. and Canada. Unlike banks, credit unions have maintained a strong local presence, resisting the shift to online-only operations while staying committed to service, co-operation and community engagement.
A well-designed educational program would also allow credit unions to engage with young people in ways few other methods could. Vital for a financial system looking to recruit younger members.
It’s a Money Thing
It’s a Money Thing is a financial literacy program that includes more than nearly 60 topics and is designed exclusively for credit unions. It provides powerful tools to educate and engage members, catering to a broad audience from kids and young adults to adults looking to enhance their financial knowledge. Through engaging content, it simplifies complex financial topics and encourages real-world application.
The program features animated educational videos ideal for digital platforms and is supported by classroom materials for students and teachers. It blends storytelling, humor and relatable scenarios to make financial concepts more accessible, memorable and applicable.
Beyond digital content, the program provides credit unions with a comprehensive financial education toolkit, including customizable presentations, social media assets and print-ready materials to educate members and strengthen community engagement. The program is designed to be flexible, enabling credit unions to tailor content to meet their members’ unique needs while fostering financial confidence among young adults.
Wrapping it up
For us at Currency Marketing, Financial Literacy Month serves as an annual reminder of the importance of financial education. And despite the efforts of public and private organizations, there’s still a lot of work to do to fully embed financial literacy into school curriculums.
If you’re a credit union leader interested in extending your credit union’s reach into the community to improve the financial future of kids and young adults, and elevate your credit union’s member acquisition metrics, please reach out to me.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
