Youth who receive special education services under the Individuals with Disabilities Education Act (IDEA 2004) and especially young adults of transition age, should be involved in planning for life after high school as early as possible and no later than age 16. Transition services should stem from the individual youth’s needs and strengths, ensuring that planning takes into account his or her interests, preferences, and desires for the future.
Facts About Youth Financial Knowledge & Capability
Teaching financial capability is important because youth are increasingly facing higher levels of debt:
- The average loan student debt for students graduated from college in 2022 was $37,5746.1
- The average college student has approximately $3,100 in credit card debt.2
- For up-to-date information on the federal student loan portfolio including Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans with outstanding balances review the Federal Student Loan Portfolio.
Unfortunately, many youth have not received either formal or informal guidance on financial matters. Individuals in low-income households can lack access to financial services. Absent suitable consumer protection and school-based K-12 financial education, youth in low-income households as adults can fall victim to scams, high-interest rate loans, and debt. Educating low-income individuals in financial management can be an effective way to improve their knowledge in five areas:
- predatory lending practices,
- public and work-related benefits,
- banking practices,
- savings and investing strategies,
- and credit use and interest rates.3
Young people often learn about money informally through socialization, such as observing and listening to their caregivers, influential adults, and peers. Youth are not consistently introduced to instruction on money matters—for example, through a classroom curriculum or other education on saving, spending, allowances, and the importance of focusing on short-term goals (i.e., purchasing an item, saving money, paying off a debt) to be able to get to long-term financial goals (i.e., saving for college, buying a house).4
Understanding what youth do not know about financial topics is important. It is also beneficial to identify the specific concerns that youth have when it comes to money.
A survey of a diverse group of youth and adults regarding what they wanted to learn about finance, found that concerns among youth varied depending on their background.5 The survey also found a disconnect between what adults thought youth should learn and what youth ranked first, for example:
- Pregnant or parenting teens and teens in the juvenile justice system or on probation were most concerned about learning how to save money for a home; whereas migrant teens and teens in school were most interested in learning how to save money for college.
- Almost 70 percent of adults in the survey felt that teens should learn about how to complete and file a tax return form, but only 39 percent of the teens were interested in learning about this topic.
- However, more than half of the teens in the juvenile justice system or on probation and almost half of the migrant teens showed an interest in learning how to complete and file a tax return.
- Although a majority of teens wanted to learn about money, more than half wanted to learn in an easy way. This could include strategies that are convenient, that use technology, and are not time consuming for youth.
Money as You Grow
Parents and caregivers can use the tips, conversation starters, and activities to help their children gain the “building blocks” that lead to strong money skills, habits, and attitudes in adulthood. Features the Money as You Grow Bookshelf, for parents of children ages 4 to 10.
Meet the Money Monsters!
The Money Monsters are a group of creatures who are new to our universe who need to learn about many important things like school, friendship, and financial literacy. Parents and caregivers can use the free publications and reading guides to help their children gain the “building blocks” that lead to strong money skills, habits, and attitudes in adulthood.
Your Financial Path to College Graduation
Have a college financial aid offer? Use this tool to help you:
- Understand your financial aid offer
- Plan to cover the remaining costs
- Estimate how much you’ll owe and if you can afford that debt
- Compare offers from different schools
- Decide what to do next
Map Your Money Journey Survey
CFPB has developed youth financial capability self-assessment tools to help young people understand their own financial capability including their areas of strength and areas for growth. They can use this information to reflect on what they may to do improve their financial capability.
Teaching Young People About Money: Tips for Parents and Caregivers
The FDIC provides tips and tools that parents can use to teach their children facts about earning, spending, and saving money at any age.
What's in Your Piggy Bank? Motivating Young First-Time Workers to Save
This recorded webinar highlights the First-Time Workers program, a pilot project from Young America Saves, which promotes saving at work for young adults, ages 16–24, as one effort to increase overall workplace saving.
Hit the Road — A Financial Adventure
Hit the Road takes users on an interactive, virtual road trip across the country, but the journey is not easy. They must save and spend money wisely to complete challenges along the way.
Other Resources on this Topic
Tools & Guides
Research links early leadership with increased self-efficacy and suggests that leadership can help youth to develop decision making and interpersonal skills that support successes in the workforce and adulthood. In addition, young leaders tend to be more involved in their communities, and have lower dropout rates than their peers. Youth leaders also show considerable benefits for their communities, providing valuable insight into the needs and interests of young people
Statistics reflecting the number of youth suffering from mental health, substance abuse, and co-occurring disorders highlight the necessity for schools, families, support staff, and communities to work together to develop targeted, coordinated, and comprehensive transition plans for young people with a history of mental health needs and/or substance abuse.
Nearly 30,000 youth aged out of foster care in Fiscal Year 2009, which represents nine percent of the young people involved in the foster care system that year. This transition can be challenging for youth, especially youth who have grown up in the child welfare system.
Research has demonstrated that as many as one in five children/youth have a diagnosable mental health disorder. Read about how coordination between public service agencies can improve treatment for these youth.
Civic engagement has the potential to empower young adults, increase their self-determination, and give them the skills and self-confidence they need to enter the workforce. Read about one youth’s experience in AmeriCorps National Civilian Community Corps (NCCC).