Managing money is an essential life skill, yet according to Bank of America, 69 percent of high school students graduate without the knowledge to budget, save or manage debt. 

This percentage must be raised since these high schoolers enter adulthood without basic life knowledge. Some schools, like Northwest Yeshiva High School, have taken steps by offering a financial literacy elective, but this effort isn’t enough. 

A new addition to the NYHS staff, Melinda McCartney, who teaches the financial literacy/practical life skills elective, believes the elective is crucial to the school community, as “many parents shelter their kids from financial realities,” McCartney said, leaving teenagers unaware of how much life costs. 

“They don’t expect to have to rough it for a while… and they [young adults] spend as if their parents are paying most of their bills,” McCartney said. 

If teenagers are not exposed to these essential life skills, they will enter adulthood unprepared to manage their finances effectively. McCartney has personally seen students graduate high school and become immediately stressed and upset by their lack of knowledge regarding adulthood. 

“I want them [NYHS students] to have some focus and grounding,” McCartney said. Without a strong foundation in budgeting, saving, investing, and credit management, they will lack the critical tools needed to make informed financial decisions, which could severely impact their long-term financial stability and independence.

In a recent study by the US Financial Capability, 37 percent of recent college graduates have been late with a student loan payment at least once in the past year. According to Bank of America, only 31 percent of young Americans thought their high school education adequately taught them good financial habits. 

To address this gap, a growing number of states require teaching financial literacy in public schools. As of 2023, seven states have financial literacy class requirements, and 34 have pending legislation. These states want to add the class because resuming student loan payments has renewed worries about student debt, according to the Center for Financial Literacy at Champlain College.

This push shows the growing recognition that financial literacy is essential. High schools need to teach it for additional reasons, as it impacts areas such as building savings, making informed career choices, and planning for long-term goals. 

Teaching these concepts early can particularly benefit students from families where financial education is not a primary focus. National Financial Educators Council research suggests that financial illiteracy is associated with poor spending habits and unmanageable debt. Additionally, financial literacy education can help students make informed decisions about higher education, such as understanding student loans, scholarships, and the long-term impact of debt. This is especially important since college is the typical next step after high school.

To help equip students with these skills, NYHS students enrolled in the elective are introduced to practical topics such as creating budgets, managing food costs, and recently began learning car maintenance. These lessons aim to provide a foundation for managing personal finances and students’ lives after high school. 

“They have no idea what life costs and what it takes to survive,” McCartney said. As more schools adopt similar programs, experts anticipate a gradual improvement in financial literacy nationwide.