I have been thinking a lot lately about financial literacy and how most of us stumbled into adulthood without anyone actually teaching us how money works. In today’s economic climate, that gap matters more than ever.
I attended Heights High School and cannot recall a single class dedicated to personal finance. We learned algebra, history, and how to diagram a sentence. But nobody walked us through a budget, explained how compound interest worked, or helped us understand that the financial habits we formed in our twenties would follow us around for the rest of our lives.
I picked up a lot in business classes at Ohio State, but by college the audience is already self-selected. A mandatory personal finance class in high school reaches everyone, regardless of where they are headed. That is exactly where this conversation needs to start.
The Parent Problem
Parents are not always the best source of financial guidance. Some are great with money. Others, through no fault of their own, never learned good habits themselves and pass along what they know — which is not always enough. Financial habits are shaped early, often unconsciously, and they tend to stick. A solid high school class could go a long way toward leveling that playing field.
The Basics That Every Adult Needs
Financial literacy is not complicated. It covers the fundamentals that make adult life work. Budgeting. Saving. Understanding credit and debt. The basics of investing. And perhaps most importantly, planning for retirement early enough for it to actually matter. These are not abstract concepts. They are life skills.
Do Not Skip the Emergency Fund
If I could highlight one concept above all others it would be the emergency fund. The water heater that quits in January. The roof that has had enough. The car repair that appears out of nowhere on a Tuesday. Life sends those bills without warning, and having a financial cushion between you and those moments is the difference between a minor inconvenience and a genuine crisis.
Money and Marriage
When two people enter a marriage with very different relationships to money it can become one of the most persistent sources of conflict in that relationship. Most of us have seen it happen. Financial compatibility requires honest conversation and a shared foundation of knowledge. That is much easier when both people show up with the basics already in place.
Peace of Mind Has a Price Tag
I have heard people say that money is not important to them. I understand the sentiment. But having a little more than you need at the end of each month is vital for peace of mind. Financial security does not buy happiness, but financial insecurity has a remarkable ability to undermine it.
Talk to your kids about money. Talk to your grandchildren too. Start early and make it a regular dinner table conversation. And let’s ask more of our schools on this one. A generation that understands how money works would be better equipped for almost everything life throws at them.
The return on that investment would be enormous.
Jay writes regularly at jaynesbit.com. His fifth book, Your Retirement Blueprint, is expected in mid 2027.
