Why Access to Financial Education Should Be a Human Right

By Adebisi Adeloye

We spend twelve years in school learning algebra, literature, and history, but ask a high school senior how compound interest works or what a credit score actually means, and you will often not get a response. Financial literacy is a skill that can determine how you survive and thrive every day, and that’s why access to financial education shouldn’t be a luxury; it should be a fundamental human right.

We live in a world where credit is the norm, and buying a house feels impossible for most people under 30. Yet, we are expected to figure it out ourselves. According to the FINRA Investor Education Foundation, only 34% of U.S. adults can correctly answer basic financial questions. When you look at marginalized communities, this gap widens significantly. A 2024 Credit Sesame survey found that 65% of non-White respondents never received financial education, compared to just 41% of White Americans. How can we claim to offer “equal opportunities” when we leave nearly two-thirds of a generation vulnerable to debt traps and scams?

Access to financial knowledge is one of the most effective ways to combat poverty and inequality. It’s not only about budgeting but also about breaking generational cycles. A 2023 study published by Cambridge University Press confirmed that individuals with strong financial literacy are better at saving, managing debt, and making long-term investments. Additionally, research from Italy supports this fact. Economist Gallo and Sconti found that if 10% of Italy's most financially illiterate citizens were replaced with knowledgeable ones, the average household income would rise by €286 annually. To achieve the same effect through a government entitlement would cost an estimated €7.3 billion. Meanwhile, the cost of mandatory financial education in schools would just be €32 million.

Wealth isn’t the only benefit; financial literacy also gives people agency. A study in the Journal of Education Research and Practice noted that students who receive financial education are better equipped to navigate complex financial landscapes. Understanding how to budget and save reduces stress, allowing people to focus on their careers, families, and passions rather than panicking over their bank balance. Furthermore, data proves that this type of education helps people who need it the most. Wang, Cao, and Huang (2022) analyzed Chinese households and found that financial literacy significantly reduces “relative poverty” because it encourages entrepreneurship and smart risk-taking. They also found that the poverty reduction effect was strongest for households with “low levels of indebtedness” and those “under the age of sixty.” This proves that teaching young people allows them to catch themselves before falling into debt.

Beyond the personal benefits, widespread financial literacy would have a ripple effect on entire communities. When people understand how to save, invest, and borrow responsibly, they are less likely to rely on predatory lenders, which drains local wealth. Instead, they put their money into local businesses, securing homes and education for their children. This would create a cycle in which every generation is better equipped than the last. Imagine if every high school student in the world graduated knowing how to leverage credit to buy a home, how to invest in a 401(k), and how to spot a financial scam. We wouldn’t just have a richer generation, but also a more equitable one. It’s time we demand that our schools teach real-world survival skills we actually need, not calculus we forget the day after the final exam.

Works Cited

• Gallo, Giovanni, and Alessia Sconti. “Could Financial Education Be a Universal Social Policy? A Simulation of Potential Influences on Inequality Levels.” Journal of Accounting and Public Policy, vol. 46, Elsevier BV, July 2024, pp. 107231–31, https://doi.org/10.1016/j.jaccpubpol.2024.107231.

• Enrich. “From Knowledge to Wealth: Positive Impacts of Financial Literacy Education.” Enrich, 18 Apr. 2025, enrich.org/insights/1877/from-knowledge-to-wealth-positive-impacts-of-financial-literacy-education.

• Wang, Shanping, et al. “Household Financial Literacy and Relative Poverty: An Analysis of the Psychology of Poverty and Market Participation.” Frontiers in Psychology, vol. 13, no. 898486, July 2022, https://doi.org/10.3389/fpsyg.2022.898486.

• Fernando, Jason. “Financial Literacy: What It Is, and Why It Is so Important to Teach Teens.” Investopedia, 29 June 2025, www.investopedia.com/terms/f/financial-literacy.asp.