Lacking Financial Education: Impact on Human Needs, Health, Security, and Life Outcomes

Financial education is the only subject in high school with universal relevance. Every person, regardless of career path or life choices, will earn income, pay expenses, and make financial decisions throughout their lives.

Less than 10% of students will use concepts from subjects such as chemistry, algebra, geometry, or literature in their daily lives. Even English, one of the most broadly applicable subjects, faces challenges in real-world application. Research shows that approximately half of U.S. adults read at or below an eighth-grade level, according to Wylie Communications and The Literacy Project Foundation.

However, every student will need to understand how to manage money, evaluate financial choices, and plan for future needs. Financial decisions affect housing, transportation, healthcare, education, and long-term stability.

Financial capability is directly connected to a person’s ability to meet basic human needs such as housing, food, healthcare, and transportation. Every adult must earn income, manage expenses, and make financial decisions that determine whether these needs can be met consistently.

In modern society, nearly every basic necessity requires financial resources. Without the ability to manage money, plan ahead, and make informed financial decisions, even essential needs can become difficult to sustain.

Psychologist Abraham Maslow recognized this connection in Maslow’s Hierarchy of Needs, which explains that people must first secure basic physiological and safety needs before they can focus on higher goals.

No other high school subjects have such a direct relationship with whether individuals can meet the most fundamental needs of daily life.

Financial stress is one of the most common sources of anxiety among adults. Concerns about debt, bills, and financial instability can lead to chronic stress, low self-esteem, and feelings of uncertainty about the future. Research consistently links financial insecurity to anxiety, depression, and other mental health challenges.

When individuals lack the knowledge and skills to manage money, they are more likely to experience cycles of debt, financial instability, and ongoing financial pressure. These conditions can create persistent stress that affects daily decision-making, relationships, and overall well-being.

Financial education helps individuals develop systems for budgeting, planning, saving, and managing financial risks. These systems can reduce uncertainty and provide a greater sense of control, contributing to improved mental health and long-term stability. Learn about the NFEC campaign: Recognizing Financial Instability as a Public Health Emergency

One of the fundamental goals of education is to prepare students for independence.

Financial capability is central to that independence. Without the ability to earn income, manage money, and plan for the future, individuals may struggle to support themselves and their families.

Financial education provides the skills necessary for individuals to build stability, avoid dependence, and manage their lives responsibly.

Few subjects play such a direct role in helping individuals function independently in society.

Money is one of the most common sources of conflict within families and relationships.

Financial disagreements often arise when individuals lack the skills to communicate about money, plan for shared goals, or manage financial responsibilities effectively.

Financial education helps individuals develop the communication, planning, and decision-making skills necessary to manage financial responsibilities together.

Financial capability plays a critical role in personal security and safety. Access to financial resources often determines whether individuals can maintain stable housing, respond to emergencies, relocate from unsafe situations, or recover from unexpected financial shocks. Financial stability can also influence the ability to live in safer neighborhoods with better access to schools, healthcare, transportation, and community resources.

Without financial knowledge and planning skills, individuals may struggle to build emergency savings, evaluate insurance coverage, avoid financial fraud, or protect themselves from predatory financial practices. These vulnerabilities can expose people to housing instability, financial exploitation, and increased personal risk.

No subjects taught in high school have such a direct influence on an individual’s ability to prepare for emergencies, protect financial resources, and maintain long-term security.

Financial instability can also have significant consequences for physical health. Limited financial resources often affect access to healthcare, nutrition, safe housing, and preventive medical services.

Individuals experiencing financial hardship may delay medical care, skip prescriptions, or struggle to maintain healthy living conditions. Over time, these challenges can contribute to chronic health issues and reduced quality of life.

Financial education helps people develop the skills needed to plan for expenses, manage financial risks, and maintain greater economic stability. By improving financial capability, individuals are better positioned to access the resources that support long-term physical health.

The connection between financial stability and health is significant enough that many experts now recognize financial instability as a public health concern.  Learn about the NFEC campaign: Recognizing Financial Instability as a Public Health Emergency

Financial decisions influence many of the most important outcomes in adult life. Choices related to education, spending, saving, credit, and investing can affect career opportunities, entrepreneurship, homeownership, retirement security, and long-term financial stability.

These outcomes shape not only an individual’s financial future, but also opportunities for families and future generations. Financial capability can determine access to education, housing stability, wealth-building opportunities, and the ability to transfer resources across generations.

Financial education helps individuals understand how everyday financial decisions accumulate over time and influence long-term life trajectories.

Few subjects taught in high school have such a direct influence on long-term economic mobility and generational opportunity.