April is National Financial Literacy Month, an important reminder of the critical role that financial literacy plays in ensuring Americans' personal and economic well-being. At NAIFA, we believe that promoting financial literacy is not just about helping individuals manage their finances but also fostering a more prosperous society for all.

While financial literacy is crucial, the reality is that many Americans still lack basic financial knowledge. A recent National Financial Educators Council survey revealed that the average American lost $1,015 in 2024 due to poor financial decision-making caused by a lack of financial education. This is a stark reminder of the very real costs of financial illiteracy, both at an individual level and for the economy as a whole.

Additional research reinforces this point. Around half of U.S. adults struggle with fundamental financial concepts like saving for retirement, managing debt, and understanding financial risks, according to the 2024 TIAA Institute-GFLEC Personal Finance Index. For the past eight years, the survey has consistently found that around 50% of U.S. adults could not correctly answer more than half of the P-Fin Index questions. 

NAIFA is proud to be a key advocate in the fight to improve financial literacy, with NAIFA chapters actively promoting financial education. NAIFA's state-level political advocacy in this area has brought tangible results. As of March 2025, 30 states have passed measures requiring public high school students to take a one-credit personal finance course before graduating. Another 10 states have active legislation aimed at making this a reality, ensuring that students have the foundational financial knowledge they need as they enter the workforce.

NAIFA Is Part of the Solution

Boosting financial literacy among youth is especially important. Studies show that young people who understand basic financial principles are more likely to make informed decisions about investing, avoid excessive debt, and plan for their financial future. Around 70% of retail investors are under age 45, so increasing financial literacy can empower younger generations to build wealth and secure their financial futures.

Financial literacy education doesn’t stop at high school. NAIFA members play a pivotal role in advancing financial knowledge in communities across the country, working with schools, local governments, churches, and civic groups to offer educational resources. They provide workshops and volunteer their time to teach essential financial concepts such as budgeting, saving, debt management, and retirement planning. In addition, Life Happens, NAIFA’s consumer outreach community, offers valuable resources to help financial professionals educate the public during Financial Literacy Month, including a social media toolkit of posts and graphics available to NAIFA members.

At the federal level, NAIFA members continue urging lawmakers to join the Congressional Financial Literacy and Wealth Creation Caucus co-chaired by Reps. Young Kim (R-CA) and Joyce Beatty (D-OH). The Financial Literacy and Wealth Creation Caucus aims to equip Americans with the skills and resources they need for economic stability, wealth-building, and prosperity.

Educated consumers are more financially secure, promote the robustness of the U.S. economy, and provide a market for important insurance and financial products and services. It’s hard to overstate the importance of financial literacy this month and every month.