Even as financial literacy education becomes more prevalent in high school and college, only 8% of millennials have a high level of financial knowledge, according to a survey by the National Endowment for Financial Education and George Washington University. About a quarter demonstrated just a basic understanding of how to manage their money.
At the same time, millennials are also a generation burdened by record-breaking student debt, which is having long-term consequences. From buying a home to getting married and even having children, many millennials are putting off life’s major milestones because of their outstanding loan balances, studies have shown.
In general, students who are required to take personal finance courses have better average credit scores and lower debt delinquency rates than those who aren’t, according to data from the Financial Industry Regulatory Authority’s Investor Education Foundation, which seeks to promote financial literacy.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.