Private Sector Plays Key Role in Filling Financial Education Gap

In efforts to address growing financial illiteracy among adults, the private sector is taking an increasingly important lead role in developing high-quality financial education programs.

Currently, 26 states mandate financial education as a high school graduation requirement, but with only 48% of adults demonstrating financial literacy, further steps must be taken to equip citizens with essential skills. Unlike the mandatory road test to obtain a driver's license, financial education lacks a nationally standardized and regulated assessment process.

The U.S. Treasury Department recently released its National Strategy for Financial Inclusion, which highlights the need for collaborative efforts between financial institutions, employers, and technology platforms in fostering financial access, resilience, and well-being.

Financially literate consumers not only benefit financially but also engage more positively with their banks and credit unions, increasing customer accounts and improving overall relationships. Experts also stress that businesses can enhance employee productivity by providing valuable financial education resources, while better outcomes for communities are directly linked to higher levels of engagement and informed decision-making among its members.

The benefits don't stop there as financially savvy consumers have been shown to exhibit lower levels of stress, improved overall well-being, and a stronger credit score. Consequently, organizations that cater to the needs of this growing demographic can enjoy increased loyalty, reduced turnover rates among employees, and improved brand image.

As companies continue to develop innovative digital platforms like those offered by BMO SmartProgress, it is clear that their efforts not only benefit their own customers but also foster a healthier financial ecosystem nationwide.

With technology available at our fingertips, businesses are well-positioned to capitalize on this growing demand for quality educational resources and elevate their services by delivering user-oriented content tailored to individual goals.