5 Reasons Why Financial Literacy Is Not Taught in Schools, According to Cindy Couyoumjian (2024)

With over 80% of Americans unable to translate a tax form and one in four American student loan borrowers in default, there is no doubt that financial literacy is at an all-time low. So, why don’t public schools teach financial literacy? Cindy Couyoumjian, President of Cinergy Financial, a private financial planning firm, explains five of the reasons why.

In previous generations, students were instructed to work hard, obtain an education, graduate, and enjoy all the freedoms of a well-paying position complete with pensions and other rewards. This is no longer as feasible, says Cindy Couyoumjian. Over time, systems of taxation have changed dramatically, giving workers more choice over when and how they will retire. The problem? Many don’t know how to begin to save for retirement.

In addition, the economy has crashed, and it is no longer feasible to follow the same pathway that previous generations have traveled to enjoy success. Employment has become more precarious, and stable work is difficult to find. For many, financial education is the key to success, and the public education system has not yet made this change.

As the result of the school system’s lack of modernization, experts who teach financial literacy are few and far between. Many teachers unfortunately lack the knowledge themselves on financial literacy, they are ill prepared to teach it to the next generation of students. The school system is still widely geared toward subjects such as math and chemistry, or the subjects sought after by post-secondary institutions. This makes it extremely difficult to add a ‘less glamorous’ course in financial literacy to the roster, states Cindy Couyoumjian.

As is the case with most life skills, the best education starts at home. Unfortunately, Cindy Couyoumjian states parents leading households are sometimes confused as to where to begin teaching financial literacy to their children and are often struggling to frame the topic in a child-friendly way.

Some say that there is a more sinister reason as to why education in financial literacy is lacking: consumerism. More debt owed means higher interest payments owed to banks, corporations and others.

Financial jargon is complex and difficult for the average American to fully understand, explains Cindy Couyoumjian. This has the effect of intimidating many adults and preventing them from asking critical questions about their financial well-being. We are simply taught that we need money to survive and put a roof over our heads. It can be too easy by times for the average consumer to feel overwhelmed with financial information.

Despite the countless reasons why financial literacy is not taught in schools, and the arguments as to why it should be, there are resources available to help increase financial literacy and improve the state of your finances. Independent financial advisors such as Cindy Couyoumjian are dedicated to sharing education and knowledge in the field of financial literacy to help investors build their skills and make positive financial decisions in their own best interests.