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For a moment, set aside the $38 trillion (and counting) national debt, long a source of alarm, and look at personal balance sheets.
Collectively, Americans hold more than $18 trillion in household debt, which amounts to roughly $156,000 per household.
The numbers are staggering.
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Let’s call it what it is: A national crisis. Yet it’s one that largely unfolds behind closed doors, fueled by a quiet but powerful reluctance to admit just how little that many people were taught about managing money.
Data underscore the concern. A January 2026 study by BadCredit.org found that nearly 43% of Gen Z respondents admitted to relying on “manifestation” rather than concrete financial steps such as budgeting or paying down debt. Hope is a powerful motivator, but it’s not a financial plan.
It doesn’t stop there. According to the Federal Reserve, nearly 40% of adults couldn’t cover a $400 emergency expense without borrowing or selling something.
Even credit cards, while a useful financial tool, account for an average of $7,321 in debt per American.
Those figures are only the most striking in a long list of indicators showing millions of Americans living under persistent financial strain, stress that reaches well beyond bank accounts and into their health, stability and long-term security.
Compounding the problem is a rising tide of self-proclaimed financial gurus on platforms such as Instagram or TikTok, where dubious advice spreads quickly and often masquerades as expertise.
The strain cuts across generations, but it’s especially acute among younger consumers who have grown up in a digital marketplace saturated with pitches for bitcoin, meme coins and online betting. What’s marketed as opportunity can easily morph into risk for people who lack a grounding in basic financial principles.
The conclusion is unavoidable: It’s time for a widespread national push to bring comprehensive financial literacy into America’s schools.
Needing to fill a need
The evidence is overwhelming, and the need is urgent. Too many Americans are struggling financially because even the most basic lessons about budgeting, saving and debt management receive little attention in the education system.
Nor can we assume those skills will be taught at home; many parents are also navigating the same knowledge gaps.
Some states are beginning to respond. In New Jersey, a legislative education committee recently approved a bill requiring high school students to learn how to manage their personal finances.
“The number of adults who have never had a personal finance class is astronomically high,” said bill sponsor state Sen. Angela McKnight, according to a report by the New Jersey Monitor. “They want to start a business, but they have no education and don’t even know how to do a simple budget.”
California is implementing a mandatory one-semester personal finance course for high school graduation, starting with the class of 2030-31. The curriculum covers earning, saving, investing, budgeting and credit. Various free resources, including Junior Achievement of Northern California, Bay Area Financial Education Foundation and Khan Academy, are available to promote financial literacy, while the state boosts CalKIDS funds for low-income families.
Another recent example from North Carolina shows what progress can look like. A charter school drew attention by putting financial literacy front and center during its Entrepreneurship Week, in which students built business models and even managed simulated venture capital.
It’s a smart approach. Instead of framing money solely around the familiar “save for a rainy day” lesson, the program ties financial skills to real-world ambition: how businesses are built, funded and managed. That kind of practical, forward-looking instruction is far more likely to stick with students long after the classroom lesson ends.
But the picture across the country is uneven. Some states have adopted comprehensive financial literacy requirements, according to the Nation’s Report Card on Financial Literacy.
Others fall well short, and the students in those states are poorer for it, figuratively and, often enough, literally.
The consequences extend far beyond personal budgets. A lack of financial knowledge also stifles entrepreneurship and business growth.
In the venture capital world, where I advise and help raise capital for early-stage companies, the gaps are impossible to miss. Many promising founders arrive with strong ideas and technical skills, but little grounding in the financial fundamentals that determine whether a business can survive.
Without that literacy, budgeting becomes reactive. Founders start managing the company based on the current bank balance instead of a forward-looking financial plan. Operational goals drift away from financial reality.
The result is often what can only be described as random acts of spending rather than disciplined resource allocation, and a hazy understanding of how the business’s underlying economics work.
Not keeping up
Despite all these warning signs, the American education system has been slow to adapt. Only about half of U.S. states currently require a personal finance course for high school graduation, a surprising gap, given the stakes. The reasons are fairly clear.
First, standardized testing still dominates the academic agenda. Schools are understandably focused on subjects tied to testing metrics and, by extension, state funding. Courses labeled as “life skills,” including financial literacy, often get pushed to the margins.
Second, there’s the challenge of expertise. Many teachers acknowledge they feel no better prepared to teach personal finance than the students sitting in their classrooms. It can, unintentionally, become a case of the blind leading the blind.
When finance does make its way into the curriculum, the material is often badly outdated. Lessons centered on balancing a checkbook miss the realities of a modern financial system defined by apps such as Venmo, the rapid rise of bitcoin and the explosion of “buy now, pay later” financing that quietly encourages consumers to spend first and sort out the consequences later.
Financial literacy belongs in every classroom, alongside every subject we already require. Math, science, and history matter; so does understanding how interest compounds on a credit card, how to read a pay stub, what consistent investing can do for a retirement account and how to spot a “can’t miss” trend before it does real damage. These aren’t niche skills. They’re the foundation for a confident, capable adult life.
Final thoughts
The path forward is neither mysterious nor out of reach.
- Require a modern, evidence-based personal finance course for every high school student.
- Train and support teachers so they feel confident in the material.
- Update the curriculum to reflect a world of digital payments, gig work and crypto rather than paper checks and savings bonds.
- Frame financial literacy not as a lecture about deprivation, but as a toolkit for freedom — the freedom to start a business, walk away from a bad job or weather an emergency without catastrophe.
We have the tools. We have the evidence. What we need now is the collective will to make this a priority.
Young people are already navigating one of the most complex financial marketplaces in history. The question isn’t whether we can equip them better. It’s whether we’re willing to make the effort.
Gayle Jennings O’Byrne is co-founder and general partner in Wocstar Fund, an early-stage investment fund focused on tech innovation being brought to market by inclusive teams and women of color. She has more than 25 years of Wall Street, technology, philanthropy and policy at firms JPMorgan Chase and Sun Microsystems.
