Financial literacy, apprenticeship legislation a good start

Economic news over the past few years has been marred with headlines warning of inflation, global unrest and market volatility. To succeed in this rapidly changing world, we need to prepare younger generations by empowering them with the knowledge and skills to make sound financial decisions. Today, financial literacy isn’t just a nice benefit of education, but a necessity.

Statistics highlight the urgency of addressing the financial literacy gap. According to a study by the National Financial Educators Council, 63% of Americans are unable to answer basic financial literacy questions correctly. Statistics also show 53% of Americans say they were never taught how to handle money growing up.

In 2022, Gov. Ron DeSantis signed Senate Bill 1054, requiring students who enter high school beginning in the 20232024 school year to take a financial literacy course to graduate. In 2019, he publicly set a goal of making Florida the top state in the nation for workforce education by 2030, then passed the

2021 Reimagining Education and Career Help (REACH 2.0) Act to increase pre-apprenticeship opportunities across the state.

As the CEO of Junior Achievement of South Florida — one of the largest nonprofit organizations in the world that delivers hands-on, immersive learning in financial literacy, business entrepreneurship and work readiness — I applaud these efforts. I welcome the spotlight on these types of education. However, we need more, and we need it earlier.

According to a recent survey by the National Endowment for Financial Education, only one in five American teenagers demonstrate proficiency in basic financial concepts. A financially uneducated younger generation poses great risks for our overall economy. According to LendingClub Corp., 64% of U.S. consumers live paycheck-to-paycheck, and 47% of Federal Reserve survey participants said they couldn’t cover a $400 emergency without borrowing or selling something. Data like this exposes the cracks in our collective financial foundation.

Millions of adults, young and old, know what it’s like to be down to their last few dollars while waiting for a paycheck; what it’s like to go to the mailbox knowing there will be more bills than they can pay; what it’s like to have credit cards maxed and borrow money to provide for their families.

These hardships could be bettered if our youth get a basic understanding of personal finance and are exposed to more career pathways earlier in their lives.

What if we could help young people avoid financial mistakes that often follow them for a lifetime? What if we could prepare them for a future that includes buying a home, saving for emergencies and building for retirement? What if, through pre-apprenticeships, workforce skills training and internships, we gave kids a real head start on careers before they even graduate high school?

I have seen firsthand how teaching financial literacy and workforce skills throughout a student’s K-12 experience and beyond not only gives students the tools they need to succeed, it also increases self-confidence and empowers them to intentionally plot their paths forward.

Thirteen years ago, Broward County Public Schools partnered with Junior Achievement of South Florida (JA) to provide every student in the county both classroom lessons and an opportunity to come to JA World Huizenga Center at the Lillian S. Wells Pavilion to participate in our immersive, hands-on programs. Our two cornerstone programs — JA BizTown and JA Finance Park — drop students into simulated cities with life-like storefronts, where they engage with memorable lessons in personal finance and career development. Additional programs, like our stock market challenge, summer internships and business mentorships, give us more ways to shape our youth. Our pre-apprenticeship program offers students the option to get professional certifications in the marine and construction industries, setting them up for lifelong careers.

This strategic private-public partnership between us and Broward’s school district is a fantastic K-12 model to explore and expand. We urge DeSantis to support partnerships like this, which clearly align with his education goals.

We also urge business leaders and community members to take an active interest in shaping the next generation. There are countless ways to volunteer, mentor and support financial literacy. Together, we can create a more prosperous and financially resilient society. Learn more about opportunities at JA at jasouthflorida.org.

Laurie Sallarulo