Imagine being asked to perform at a concert without ever taking piano lessons. Or read a novel without knowing the alphabet. Or solve a calculus problem without first learning basic math. Now, imagine entering adulthood – expected to manage a paycheck, pay for rent, and save for the future – without ever being taught how money works.
That last scenario isn’t hypothetical. It’s the reality for millions of Americans.
According to research by Payroll.org and AARP, 78% of Americans live paycheck-to-paycheck, and one in five people over 50 have no retirement savings. As costs of living, especially housing, food, and health care continue to rise – research by the World Economic Forum found that half of Americans are financially literate. Gen Z scores even lower than other generations on financial literacy tests.
So, what exactly is financial literacy, and why is it important?
Financial literacy is the ability to manage personal finances – earning income, spending, saving, investing, and managing debt. For young people, this knowledge sets the foundation for a lifetime of financial well-being, helping them plan for post-high school education, careers, and money.
The Auburn School District (ASD) in King County serves over 17,896 students, preparing them to enter adulthood successfully. When parents on the district’s strategic planning committee identified financial literacy as a top priority, the school board responded by passing a resolution to make it a required part of the curriculum starting in the 2023–24 school year.
To make this plan a reality, ASD partnered with Junior Achievement of Washington, a nonprofit that teaches young people skills in financial literacy, career readiness, and entrepreneurship. In the last two years, more than 5,100 students in fourth, fifth, and seventh grades have participated in hands-on learning in JA BizTown and JA Finance Park, located in Auburn. Inside these immersive mini-towns featuring a city hall, banks, stores, restaurants, and other businesses, students become adults for a day and learn real-life responsibilities. They take on jobs as CEOs, mayors, sales managers, and news anchors and learn to run businesses, manage employees, balance their budgets, and provide for their families.
Alesha Rowe, a fifth-grade teacher at Lake View Elementary School, already notices the positive impact of experiential learning on her students: “JA BizTown gives students a great way to gain hands-on knowledge about financial literacy, teamwork, and how businesses run. Through this program, students learn not only about managing money by earning and spending but also the importance of saving and planning for the future.”
In addition to their hands-on experience at JA Education Center, ASD students continue learning in their classrooms with age-appropriate programming from kindergarten through 12th grade. These programs, often taught by local volunteers who share their career and industry knowledge, help students connect classroom knowledge to life outside the school walls. Beginning with the class of 2024, all ASD high school students are required to complete financial literacy lessons as part of their high school and beyond graduation requirements.
Financial literacy is not just a classroom subject – it’s a key to economic mobility. It can break the cycle of poverty, support marginalized communities, and create equitable access to financial services. We believe that every student in Washington state should have access to financial education and enter adulthood equipped with knowledge and tools for economic success.
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Natalie Vega O’Neil is the President and CEO of Junior Achievement of Washington, a nonprofit dedicated to providing financial literacy education to young people. Dr. Alan Spicciati is the Superintendent of the Auburn School District, serving more than 17,800 students.
