Studies Show Only 16% of Millennials Understand Basic Financial Concepts

 

Keypoints:

  • Younger generations aren’t taught financial concepts as a life skill.
  • Financial decision-making is something to be learned in middle and high school.
  • Millennials saddled in student debt can’t afford mortgages.

Commentary:

You can’t read financial news without noticing reports about how the younger generations are writing their own rules regarding finances. A 2020 study from the TIAA Institute shows that only 16 percent of millennials demonstrate an understanding of basic financial concepts. But how have we let younger generations fall by the financial wayside? MarketScale’s Hilary Kennedy talked with Dr. Stanley J. Kon, Chairman & Co-Founder of  Ripsaw Wealth Tools –  a wealth management platform, for his perspective, pulling from his mission to provide resources and education for anyone ready to take control of their financial situation.

Abridged Thoughts:

Financial literacy should be thought of as a life skill. Teaching financial decision-making skills should begin in middle school and high school. Critical thinking, which is a key part of financial education, is necessary to evaluate life event decisions that frequently involve trade. For example, students may take on student loans but later find themselves in debt they can’t repay from employment wages. Some borrowers may find they can’t qualify for a home mortgage years later. Financial education can help students only consider borrowing if it increases future earnings by enough to justify the cost.

Our resources are used to achieve a preferred standard of living through time. We invest in education to generate higher future earnings, a better life for you and your family. We promised some of our future earnings in a home mortgage. So we can have a higher standard of living today. Saving for retirement is giving up some spending today to supplement a lifestyle after retiring, and our labor income is unavailable. It is important to distinguish between good and bad decisions.

More Stories Like This:

Will New Income Reporting Have Any Meaningful Impact on the Financial Ecosystem

Why Every Hotel Leader Needs to be a Financial Leader

Follow us on social media for the latest updates in B2B!

Image

Latest

Goldey-Beacom College
Workforce Success and Innovation-Driven Growth with President Keith of Goldey-Beacom College
September 3, 2025

As higher education institutions face declining enrollments and increasing pressure from employers for skills-based learning, small colleges are rethinking their missions. A whopping 70% of U.S. employers say they struggle to find workers with the right skills, and credential-based programs are gaining traction as a solution. At the intersection of tradition and transformation, Goldey-Beacom College…

Read More
healthcare workforce development
Transforming Healthcare Workforce Development: Sustainable Solutions Through Early Engagement, Access, and Leadership
September 3, 2025

Healthcare systems continue to face intense workforce challenges, with nursing at the center of concern. According to the U.S. Bureau of Labor Statistics, employment of registered nurses is expected to grow 5% between 2024 and 2034—faster than the average growth across all jobs in the U.S. economy. While this growth reflects rising demand for…

Read More
consumer brands
Consumer Brand Growth Formula: Value Proposition, Platform Strategy, and Wellness Integration
September 3, 2025

Building consumer brands today requires more than clever marketing; it demands brand trust. Consumers want proof that products work, delivered at prices that feel accessible. That shift has raised the bar for founders, especially as 86% of consumers say authenticity influences which brands they support—with Gen Z placing even greater emphasis on it. Credibility…

Read More
career
The Key to Career Equity? Boundaries, Balance, and Knowing Your Strengths
September 2, 2025

Career paths aren’t always linear. Many professionals find themselves navigating shifts between industries and roles, discovering that success often comes down to setting boundaries, balancing responsibilities, and leaning on core strengths. So, what does it look like to build professional equity not by chasing titles, but by leaning into what you do best? How…

Read More