Students failing on fin lit, but advisors can help

investmentnews.com:

The absence of financial education in schools is showing, with more than 60% of high school and college students failing basic tests, according to a report Friday from the Spark Institute and Corporate Insight.

The results show a glaring need for more programs in public schools – something that financial advisors can play a critical role in providing. Students who currently aren’t getting any financial education may be ill prepared to handle increasingly complex financial lives in adulthood. And of course, they might also be less likely to pursue careers in financial services.

On a five-question multiple-choice test covering credit scores, loans, retirement savings, investing and interest, 39% of college students got at least three answers right, compared with 37% of high school students, according to a statement from Spark.

“The financial services industry spends significant resources on educating employees on how to save and invest for the future. However, there is not enough focus on providing education to [help] high school and college age students build good financial habits early in life,” Snezana Zlatar, chair of the Spark Financial Literacy Committee, said in the group’s statement. Spark, a retirement plan industry trade group, is encouraging its members to help build financial literacy programs, share data and start partnerships with academic institutions and nonprofits. The group also wants more pressure on policymakers to expand financial literacy.

The report is based on data from a July survey of more than 900 high schoolers and 900 college students.

Along with the low average financial-literacy test scores, the report noted that high school students who showed higher aptitude about the subject were more