Being secure financially plays a significant role in our mental health and wellbeing. Financial responsibilities like car payments, loans, and mortgage payments creep up fast for young adults.
Making these financial decisions without being adequately informed can be a huge source of stress and anxiety. 73% of Americans rank their finances as the number one cause of stress.
There is a correlation between low financial literacy and poor financial decision-making, such as accepting higher borrowing rates like credit card debt, defaulting on mortgage payments, and home foreclosures.
It becomes vital for people to understand various financial skills such as budgeting, saving and investing, spending, managing debt, and acquiring and growing assets.
To make informed decisions that lead to prosperous financial health, people also need to understand the many financial instruments available such as stocks, bonds, and mutual funds.
In a study of schools in Georgia, Idaho, and Texas that implemented state-mandated financial literacy courses, a study found that all three states saw a reduction in serious delinquency rates and high credit scores.
Preparing college students for the world after campus life where money exchanges hands constantly can change the trajectory of their lives. 83% of people who set financial goals feel better about their finances after just one year.
As college graduates, they will be better informed to make sound financial decisions, but they can also avoid the cycle of high debt and lack of savings that affect so many young adults.