The financial advice profession is being called on to play a larger role in helping bridge a nationwide gap in financial literacy.
While there is progress being made and glowing examples of success stories across the country, the big picture
remains relatively bleak, and the need is great.
Only 23% of parents talk to their school-age kids about personal economic issues, and 35% of parents admitted they are uncomfortable discussing financial literacy topics with their kids, according to a think tank presentation Tuesday in Orlando, as part of a pre-conference meeting for Pershing Advisor Solution's annual
INSITE conference,
The think tank, co-hosted by BNY Pershing and
InvestmentNews, brought together 100 financial advisers to brainstorm ways to
improve financial literacy for both school-age children and their parents.
While
financial literacy challenges, related to managing debt, basic budgeting, and saving and spending habits, are prevalent across the socioeconomic spectrum, the educational opportunities are often missing when kids are still in school.
According to a study by Champlain College's Center for Financial Literacy, only five states earned "A" grades for teaching financial literacy in schools.
Those states — Utah, Missouri, Tennessee, Virginia and Alabama — all have mandates to teach financial literacy in school. Since 2016, no additional states have introduced financial literacy educational programs
Meanwhile, as
InvestmentNews publisher Suzanne Siracuse explained, consumers are facing increasing levels of financial challenges and decisions.
"Financial literacy is critically important to our economy," she said. "As employee pension plans disappear and defined contribution retirement programs become the norm, that imposes greater responsibilities on young adults to save and invest. If most fail to do so, they will become a significant economic burden on our society."
The potential to have an impact on the problem was highlighted by the example of Pershing Advisor Solution's chief executive Mark Tibergien, who has for the past 10 years
underwritten a financial literacy program at his former high school in the small town of Gladstone, Mich.
"I know from my own life that I was not making mature financial choices until I was 30 years old," said Mr. Tibergien, who graduated from Gladstone High School in 1971 and now lives in New York and Seattle.
The Gladstone program, in which Mr. Tibergien has donated approximately $250,000 over the past 10 years, has even spawned a financial literacy summer camp and drawn support from area financial professionals in the town of 5,000 people.
The think tank workshop produced several ideas for programs that could be introduced for school-age children and young adults.
In terms of ways to add financial literacy into the tight school curricula, there were ideas for using substitute teachers to specialize in personal economics, and to partner with financial services companies for financial support.
And with a consideration for the way some generations learn and digest information, there was a focus on digital communications, including using YouTube presentations, apps, and games to help get the message out.
With the seeds having been planted through the initial think tank meeting, the next step for the Pershing-
InvestmentNews partnership is to compile the research into a comprehensive report, with goals and objectives, slated to be published in September.
