“Financial freedom is available to those who learn about it and work for it.” – Robert Kiyosaki
Jay Ledesma
My husband and I are now vacationing in Lakewood, Washington to visit my daughter who has just given birth to a baby girl. We had the chance to experience their Easter celebration, which is a big thing here. Also, it’s their Spring break, so it’s vacation time as well for most Americans.
Another thing that is widely observed here every April is their National Financial Literacy month, which is aimed at raising public awareness on the importance of financial literacy and acquiring smart money management habits. This year marks the 21st anniversary of the movement, a milestone that underscores their commitment to promoting the timeless value of financial education amidst the fast changing economic environment.
According to the recent study made by Zippia, despite being the richest country on Earth, the US ranks only 14th in terms of financial literacy. It also showed that only 57% of adults in America are considered financially literate. Broken down by generation, the older ones fare better with Gen X and millennials at 48% and the baby boomers at 59%. While only 36% of the Gen Z are reported to be financially literate. Just like in the Philippines, financial literacy is not yet a mandated part of their school curriculum. Only a handful of states require high school students to take a personal finance course before graduation.
Considering the above, it is just apt that for 2024, their celebration is centered around the theme of “Inform, Inspire, Ignite” sending the message that financial literacy begins with learning and teachers (and parents) play a vital role in starting that spark of learning among our children.
Inform – Loud and clear, financial education is not a luxury; it’s a necessity! We seek equitable access to financial literacy classes and teacher training. Creating an effective financial education across the country is the way to a more equitable and prosperous society.
Inspire – Imagine a future where every student graduates with a strong understanding of money management and financial independence. They will face life challenges more equipped and empowered to take control of their financial success.
Ignite – Every child deserves the chance to build a solid foundation for their financial future. Let us help ignite that desire to learn and develop wise money habits. But only empowered teachers can make this happen. Support our teachers with resources, curricula, and training.
Their appeal: Let’s make the above a reality by pushing for comprehensive and effective financial education in every K-12 curriculum!
This month long celebration is a nationwide, collaborative effort drawing strengths and resources from various private organizations, government agencies and community groups.
At the heart of these initiatives is the national Jumpstart Coalition for Personal Financial Literacy. With more than 100 partners across USA, Jump$tart is the original promoter of the financial literacy month. This organization plays a crucial role in orchestrating events and resources among the different sectors of the community.
The state’s department of finance, banking, or consumer affairs are involved in providing insights into financial literacy by offering workshops and financial education forum to the public. Nonprofit credit counseling agencies are among the most fervent advocates for financial literacy, dedicating their efforts to educating the community on essential financial skills, such as budgeting, credit management, debt reduction, and saving for emergencies.
Educational institutions, from elementary schools to colleges, also champion the cause of financial literacy. Teachers and professors usually integrate financial education into their curriculum during April. Libraries have become popular hubs for financial education, hosting events and workshops aimed at promoting financial wellness.
For members of the military community, where my son-in-law is an active member, it is a back-to-back observance of financial literacy month and Military Saves Week. Coordinators put together different financial education related activities and services tailored fit to the unique needs of the military community.
Even local TV Ads feature financial literacy materials. While some business establishments hand out pamphlets and flyers.
It is just heartwarming to see how their Financial Literacy Month brings together the different financial institutions, nonprofit organizations, and government agencies to highlight the significance and pivotal role of financial literacy. Their journey to financial literacy is an ongoing one, but they are surely on the right path to taking control of their financial destiny as a nation.
Back home, I wish that as a nation, we can be more intentional and proactive in increasing the financial awareness of many Juans and Juanas. With only 25 percent of adult Filipinos being financially literate, we have a lot of catching up to do. Having the Economic and Financial Literacy Week every second week of November and the Life Insurance Consciousness Week every first week of October, are good starters but definitely not enough. We need a more fundamental solution/approach, and not just a one week rah-rah, to address our low financial literacy rate.
It’s time that we bring and integrate financial literacy into our educational system. Our Department of Education can collaborate with the different financial institutions (banks, investment and insurance companies) in coming up with the curriculum and even with the roster of educators. We call on our legislators and education head to seriously look into this basic initiative that can significantly empower Filipinos to improve their financial well-being.
I personally believe that the sooner we teach our children the basics of money management, the better it will help them acquire the skills and the tools necessary to achieve financial independence later in their life. From saving and investing to making and maintaining a budget, learning these concepts early on will give our children a head start in making future major financial decisions. By educating the youth, we can break the vicious cycle of financial ignorance and dependence in the family, in our community, and in our country. (Jay Ledesma)