Building a More Financially Literate Future for All
When my co-founders and I started Vested 10 years ago, our goal was to build a consultancy that truly served the needs of the financial services industry in a way other agencies were not. We wanted to share our deep industry expertise paired with tested communications strategies that made executives more confident in the boardroom and on television, gave CMOs a powerful business case to present to their boards, and drove real results for the firms we took on.
There was a second goal, however, that has truly been our guiding principle over the last decade. We wanted to build an agency that helps shape a better financial services system that is more accessible, transparent and sustainable. Financial literacy is a cornerstone of the work we do as an agency, and something I am deeply passionate about from a professional and personal standpoint.
April is Financial Literacy Month – a time for us to take stock (pun intended) of where we are and where we need to go on this mission to equip individuals and families with the knowledge and skills needed to make informed financial decisions.
The State of Financial Literacy in the US
- Financial literacy in the U.S. has remained stagnant at around 50% for eight years, with a slight decline in the last two.
- 47% of Americans rate their personal finance knowledge as a “C” or worse, up 12% since 2009.
- Only 54% of U.S. adults feel they have even a fair amount of financial knowledge.
- Younger generations, particularly Gen Z (28%), report feeling the least financially literate.
- Many small business owners (42%) had little or no financial knowledge before starting their businesses, which can hinder long-term success.
The lack of financial literacy in our country has a profound impact; one that leads to high financial stress for families and unstable outlooks for the future. 65% of Americans live paycheck to paycheck, and less than half could handle a $1,000 emergency. 28% have no savings for the future, and 39% aren’t contributing to retirement funds.
Without financial education, individuals struggle with debt, retirement planning, and long-term financial security. And in this moment of high inflation and global economic uncertainty, the stakes have never been higher.
The Role of Education in Financial Literacy
Not all is lost, of course. Progress is being made as 27 states now require some form of financial literacy education for high schoolers, and non-profits across the country do tremendous work to bring financial education to schools and families.
At Vested, we believe financial literacy is the foundation of financial success – for individuals, businesses, and the economy. We help to simplify complex financial topics, making them accessible to the public. Whether it’s decoding economic policy for the media, demystifying investment products for retail consumers, or helping banks explain credit to their customers, we work every day to bridge the gap between Wall Street and Main Street.
We’re proud to support some of the world’s leading financial firms in their mission to educate and empower their audiences. And we’re equally proud to partner with the Museum of American Finance, supporting their programming and outreach focused on promoting financial literacy across the country. Together, we aim to make the world of finance less intimidating and more inclusive.
The financial system should work for everyone, not just those who know the jargon. That’s the future we’re building at Vested.
