Understanding financial literacy in uncertain times
Today’s economic headlines are packed with jargon including interest rate hikes, inflation and inverted yield curves. If it all sounds like something out of The Big Short, that’s because it kind of is. Remember the scene with Selena Gomez playing blackjack explaining how everyone wanted to get in on the real estate lending boom? Or Margot Robbie, champagne in hand, breaking down subprime mortgages from a bubble bath? The filmmakers knew we needed help understanding what triggered the last financial crisis that spread globally and devastated millions.
Movie still from imdb.com
“OK, so here's how a synthetic CDO works," explains Selena Gomez in The Big Short.
From shifting global trade policies to fluctuating interest rates and market volatility, today’s economic headlines are enough to make anyone feel uneasy. While these developments are natural ebbs and flows of our economy, they highlight a deeper truth: financial uncertainty is becoming commonplace.
For individuals and families, understanding how to interpret these signals—and knowing how to respond—can make all the difference. This is where financial literacy plays a vital role. Being financially literate doesn’t mean predicting the future. But it does mean being prepared for it.
At Currency Marketing, we believe that financial confidence begins with education. Through our financial education program, It’s a Money Thing, we help young people, students and credit union members build the skills they need to navigate personal finance. In times like these, that kind of knowledge becomes not just helpful, but essential.
Do we really understand what we're hearing? What are the signs of financial uncertainty?
We hear economic buzzwords on the news or in casual conversations at work—terms like “interest rate hikes,” “recession signals” or “market volatility.” But how many of us truly understand what these mean or how they impact our day-to-day finances? For many, there's a wide gap between familiarity and real comprehension.
Rising interest rates can make borrowing more expensive and slow economic activity
Inflation erodes purchasing power through the rising cost of goods and services
Global trade disruptions, such as tariffs or supply chain bottlenecks, impact the costs and availability of everyday products
Volatility in financial markets often reflects nervousness among investors and businesses
Declining consumer confidence can reduce spending and slow down the economy even further
Unusual trends in bond markets, like the inverted yield curve, have historically signalled recessions
Each of these indicators is a piece of a larger puzzle. Individually, they may not tell the full story, but when several appear, they often point to a more challenging economic climate ahead.
The cost of misunderstanding
Hearing terms like “economic slowdown” or “rate hike” is one thing—understanding how they affect your daily finances is another. Many people struggle to connect abstract economic ideas to real-life decisions, resulting in poor borrowing choices, stress-based reactions or outright confusion.
The impact isn’t evenly distributed. People whose first language isn’t English, those with limited education or individuals in underserved areas often bear the brunt and are left to navigate uncertainty alone. As a result, many turn to high-fee, check-cashing outlets, payday lenders or other predatory services.
This is where credit unions can step in with educational outreach. By offering trusted advice and introducing engaging programs like It’s a Money Thing, they can help members build confidence before crises hit. Financial literacy becomes more than a curriculum—it becomes a protective shield backed by an institution that genuinely cares.
Can financial literacy fill the gap?
While no one can control the global economy, individuals can control how prepared they are to face it—and how quickly they recover. Understanding how inflation affects savings or how to build an emergency fund can make all the difference in weathering financial storms and bouncing back stronger.
Financially literate individuals are more likely to budget, save and make sound decisions. As the economy rebounds, those with strong financial habits tend to recover faster and build lasting stability.
The challenge? Most adults in the U.S. and Canada operate at only about half the financial literacy level needed to confidently manage everyday financial decisions. Traditional education often falls short, particularly in economics, but accessible, well-designed programs can help close that gap.
It’s a Money Thing was built to meet learners where they are. With more than 60 animated videos and a robust library of classroom and community tools, it delivers the “how” of personal finance and the “why.” From inflation and interest to budgeting and investing, It’s a Money Thing simplifies complex financial concepts. Whether used in schools, colleges or credit unions, It’s a Money Thing helps learners build knowledge and resilience.
Credit unions that invest in financial education aren’t just helping members today—they’re fostering a financially confident membership base for the future.
Tim McAlpine is the 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.
