One of the most important skills needed to achieve financial security is understanding the fundamentals of following a budget, reducing debt and saving for retirement. Yet, despite being the world’s largest economy, the U.S. doesn’t even crack the top 10 list for financial literacy worldwide.
That lack of education can be particularly harmful for middle-income Americans, who are disproportionately impacted by factors such as high inflation and may find it more difficult to recover from down periods in the economy.
That’s why it’s particularly noteworthy that Primerica’s Q1 2024 Financial Security Monitor™ (FSM™) survey found that 66% of middle-income Americans believe the financial education they received in school failed to adequately prepare them to manage their personal finances as adults. Specifically, respondents said they did not learn the necessary skills for a number of tasks, including doing taxes (71%), paying back student loans (67%), taking out and paying back loans (64%) or setting a household budget (59%).
The survey found a notable discrepancy among age groups as the youngest age brackets expressed the highest level of dissatisfaction with their financial education, with 73% of those ages 18-34, 69% of those ages 35-49 and 65% of those ages 50-64 saying they weren’t taught proper financial skills. In addition, 57% of women over the age of 65 felt the same way. Notably, 61% of men over the age of 65 said school did adequately prepare them, representing the only demographic where a majority felt positively about their financial education.
“We are seeing a clear lack of confidence among middle-income Americans who believe their education failed to prepare them to manage their personal finances, with an overwhelming majority of young people feeling left behind,” said Glenn J. Williams, CEO of Primerica. “These are gaps we have to recognize and address as people plan their financial futures and navigate a fluctuating economic environment that, in recent years, has left middle-income Americans feeling incredibly uncertain about their financial situations.”
Luckily, there are many steps middle-income families can take to shore up their financial future, such as educating themselves on key financial principles, practicing “loud budgeting” to prioritize healthy spending habits, cutting out frivolous spending and shopping splurges or simply starting a monthly budget.
No matter your income, age or current financial situation, taking such steps can help bolster your financial education and figure out the best route to financial success. And, as always, whether coming up with a financial game plan feels daunting or you just want to make sure you’re on the right track, reaching out to a financial professional may help ease your mind and give you the confidence you need to succeed.
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