Feb 12, 2024

Tyton Partners’ ‘Investing in Tomorrow’ Research Reveals a $100,000 Per Student Impact of High School Financial Education

Tyton Partners, a strategy consulting and investment banking firm focused on the education sector, announced the results of its latest report, Investing in Tomorrow: Lifetime Value of Financial Education in High School. The report, which was done in collaboration with Next Gen Personal Finance, the leading financial education nonprofit in the United States, found that there is a lifetime positive benefit of approximately $100,000 per student from guaranteeing that a high school student takes a one-semester course in personal finance.

This determination is particularly important because, in March 2023, only 24% of United States high school students were guaranteed that they would take a one-semester course in personal finance. The report illustrates that guaranteeing personal finance education in high school can positively impact each state’s economic development and shape the financial landscape of future generations.

Key findings of Investing in Tomorrow include:

  • Personal finance education has a transformative impact throughout a student’s lifetime, positively influencing a wide variety of outcomes, including credit scores, debt management, and retirement savings.
  • Taking a one-semester course in personal finance results in an average per-student lifetime benefit of approximately $100,000, while the cost for implementing a standalone course can be kept low given the availability of high-quality curricular resources and teacher professional development made available by providers at no or minimal cost.
  • To maximize the impact of personal finance education in high school, implementation is critical. It requires timely and comprehensive curriculum standards, teacher preparation through high-quality professional development, and flexibility in graduation requirements from state and local agencies.

Tim Ranzetta, Co-Founder of Next Gen Personal Finance, which collaborated on the report, noted that "Personal finance literacy is the cornerstone of a resilient and empowered society. When students take a course in personal finance, it not only sets them up for their financial future but results in so many positive behavioral outcomes as well. This report sheds light on the pivotal role personal finance education in high school plays in shaping the future success of individuals, families, and local economies."

The Financial Industry Regulation Authority (FINRA) reports that 66% of Americans are deemed financially illiterate, leading to real and damaging consequences such as debt and poor financial planning. The report highlights that investing in financial education has a major impact, equipping students with the knowledge and skills needed for a more financially literate and resilient society.

Investing in Tomorrow calls for a paradigm shift in education policy, advocating for statewide mandates for standalone, semester-long personal finance courses. The undeniable correlation between personal finance education and overall well-being underscores the need for a comprehensive approach, laying the foundation for a generation capable of navigating life's financial complexities with confidence and competence.

Read Investing in Tomorrow: Lifetime Value of Financial Education in High School here.

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