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While plenty of studies show the link between financial knowledge and financial success, a recent report puts a price tag on it: $100,000.
A study from consulting firm Tyton Partners and nonprofit Next Gen Personal Finance found that taking just one personal finance class in high school leads to an average lifetime benefit of about $100,000 per student. And that number may be conservative, according to CNBC.
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“We say it’s $100,000, but as we start to see more and more young people investing, that number is only going to increase,” said Tim Ranzetta, co-founder and CEO of Next Gen Personal Finance, a nonprofit that provides middle and high school students with financial education.
Much of the value comes from making smarter money decisions — like avoiding high-interest credit card debt, qualifying for lower-cost loans and improving credit scores. But investing may be the most powerful lesson of all.
Learning how to navigate the financial markets can pay off for decades.
“Teaching students about the financial markets is the greatest asset for building wealth,” said Yanely Espinal, director of educational outreach at Next Gen, in an interview with CNBC.
A recent report found that roughly 70% of teens think saving for retirement is something they can think about later. At the same time, 80% of teens have never heard of a FICO score or don’t understand what it means.
But some states are trying to close the gap. As of March 2025, 27 states require high school students to take a personal finance course before graduating.
“The issue isn’t that we don’t have teachers,” said John Pelletier of Champlain College. “What we don’t have is highly trained teachers because it is an orphan curriculum.”
Pelletier estimates the U.S. would need at least 23,000 trained educators to teach all 9.2 million public high school students in required-course states.
Even if your school doesn’t offer a course — or if you graduated from high school a long time ago — it’s never too late to learn the basics about money management and investing. Here’s where to start:
The simplest step is to track your income and expenses — how much do you make and how much do you spend? Budgeting and tracking can help you understand where your money is going, so you can make every dollar work for you.
With YNAB, you can track spending and saving all in one place. Link your accounts so you can see a big-picture look of your expenses and net worth growth. You can prioritize saving for short or long term goals — like a vacation or a down payment for a house — with the app’s goal tracking feature.
If you want to pay debts faster, you can create personalized paydown plans to calculate how much interest you’d save if you topped up your monthly payments with a little extra.
The easy-to-use platform allows you to simplify spending decisions and clarify your financial priorities. Plus, you don’t need to add your credit card information to start your free trial today.
Start saving as much as you’re able each month, with the goal of saving up six months of expenses. Put it in a high-yield savings account, where you’ll earn a higher interest rate.
Even if it takes years to save up enough, this is the first step to building financial health. When crises arise, you’ll have savings to fall back on instead of relying on loans or credit cards that can create a spiral of debt.
Books are a simple, affordable way to start your education. Visit the library and pick up books like The Millionaire Next Door,The Simple Path to Wealth, and Die with Zero. These books offer a well-rounded explanation of how markets work and how to start building long-term wealth.
If you’re working, look into Roth IRAs. These tax-advantaged savings accounts can help you start saving for retirement — and the earlier you start, the more time it’ll have to grow.
Experts recommend saving 10 to 15% of your income in a retirement account in your 20s, but max it out if you’re able. Also, do some research on index funds, as they tend to be less risky than buying separate stocks.
There are plenty of social media influencers who claim to teach financial literacy, but many of them promote risky strategies like crypto or day trading. Free sites like Next Gen Personal Finance, NerdWallet and the Consumer Financial Protection Bureau offer accessible tools and courses.
And, parents — start teaching your kids about finance early. By age six, most kids can understand simple finance concepts like buying wants rather than needs and sticking to a budget. Closing the financial literacy gap starts at home.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
