Private Sector Steps Up to Fill the Gap in Financial Education

In an effort to address the alarming rates of financial illiteracy, 26 states now mandate financial education as a high school graduation requirement, a number that has more than doubled in the last decade. Despite this growing recognition of the importance of financial education, only 48% of adults possess basic knowledge of personal finance, leaving many vulnerable to costly mistakes.

The solution lies with the private sector, which is uniquely positioned to provide high-quality financial education programs. According to the U.S. Treasury Department's National Strategy for Financial Inclusion, financial institutions and employers can play a crucial role in fostering financial access, resilience, and well-being by contributing resources and partnerships to this effort.

"Financially educated consumers are better customers as well, with higher financial capability, more disposable income, and higher credit scores," said an industry expert. "By investing in adult financial education, companies can create more engaged customers, more productive employees, and more thriving communities."

The lack of access to quality financial education has a significant impact on families, resulting in loses of $1,506 annually due to financial illiteracy, as well as increased stress levels, lower credit scores, and decreased productivity.

Fortunately, technology is playing a key role in addressing this issue. Companies such as BMO are leveraging educational technology platforms to provide accessible, digital-first experiences that promote financial literacy and well-being.

BMO's SmartProgress(CA) and SmartProgress(US) programs are free online resources designed to educate customers, employees, and community members about personal finance. With over 280,000 users and a wide range of interactive exercises and real-life scenarios, these platforms aim to empower individuals with the knowledge they need to make informed financial decisions.

The benefits of investing in adult financial education extend beyond individual well-being to positively impact businesses as a whole. By creating more engaged customers and productive employees, companies can boost competitiveness and drive success.

As one executive noted, "Doing good is good for business." By stepping up to provide high-quality financial education, companies can capitalize on this opportunity and reap the benefits for years to come.