Building a Strong Financial Foundation: Equipping Teens for a Brighter Tomorrow

Author: Elizabeth Stepanek
Financial Literacy
Published: Wednesday, 16 Apr 2025

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Teacher and student for financial literacy month

Image caption: Empowering the next generation with financial knowledge

In honor of Financial Literacy Month, we explore the challenges teens face in today’s fast-paced and ever-changing world and emphasize the vital role financial education plays in shaping a more secure and promising future.

A recent study reveals that many teens still lack the essential knowledge needed to make informed financial decisions. According to a survey by Junior Achievement and the Mission Square Retirement Foundation, while 45% of high schoolers have taken a financial literacy class, there’s still a significant gap in financial education that we need to address.

At Junior Achievement (JA), our mission is to empower students with the knowledge, tools, and confidence they need to navigate the complexities of personal finance. We believe that equipping young people with a strong financial foundation is key to helping them build a stable, successful future.

The Need for Financial Education

Despite the progress made in teaching financial literacy, many teens still face challenges when it comes to understanding key financial concepts. For example, recent findings show that 80% of teens have either never heard of or don’t fully understand credit scores. Given that your credit score can significantly affect your ability to secure loans, purchase a home, or even land a job, this lack of knowledge is alarming. At JA, we are working to change this by educating students on the importance of credit scores and giving them the tools they need to make smart, informed decisions.

But it's not just credit scores that teens are grappling with. Many are also anxious about their financial futures. According to the same research, 42% of teens worry they won’t have enough money when they get older. We understand that these anxieties are real and that they can hinder a teen’s ability to plan for their future. That’s why we’ve developed programs focused on budgeting, saving, and investing—empowering teens to take charge of their finances and feel confident about their economic well-being.

Building Smart Financial Habits

The survey also reveals some interesting insights into how teens approach managing money. The top three investment strategies among teens include keeping money in savings accounts, side hustles, and keeping money in cash. While these are good starting points, they’re just the tip of the iceberg when it comes to smart investing and wealth-building strategies.

Junior Achievement aims to go beyond these basic strategies by teaching students about investing in stocks, understanding risk management, and making their money work for them. Our programs are designed to give teens a comprehensive understanding of how to grow their wealth, not just save it - setting them up for success in a competitive financial world.

Commitment to Financial Empowerment

At JA, we are committed to helping students transition from financial literacy to financial action. We want to ensure that every teen has access to the education and resources necessary to navigate their financial future with confidence. By offering hands-on learning experiences that connect classroom concepts to real-world scenarios, we are helping students build strong financial foundations, develop money-management skills, and understand the importance of planning ahead.

With programs designed to cover everything from earning and budgeting to credit management and investing, Junior Achievement is more than just a resource—it’s a movement to prepare the next generation for a brighter, more financially secure future.

Taking Action Together

We know that the path to financial empowerment starts with knowledge, that is why we are dedicated to making that knowledge accessible to all. Whether it’s helping teens understand the significance of their credit scores, teaching them how to save and invest, or guiding them through the basics of financial planning, we’re here to make sure that every young person has the tools they need to succeed.

Let’s work together to bridge the gap in financial education and ensure that today’s teens are prepared to take on tomorrow’s financial challenges. The future is bright, and with the right knowledge, skills, and confidence, the next generation can thrive in an ever-changing world.