U.S. Education Secretary Proclaims Need for Enhanced Financial Literacy

United States Education Secretary Arne Duncan is expressing grave concern about the state of financial literacy in America and, indeed, throughout the world, as historically low savings rates, high financial illiteracy and economic trends such as the movement of the U.S. baby boom generation towards retirement threaten the financial stability of individuals and families to a very significant extent.

Speaking at the Pensions & Investments conference on Investment Innovation, Duncan underscored what financial literacy advocates have been saying for quite some time; namely, that U.S. consumers are facing a major crisis in the area of financial education, particularly as more complex financial products and services are being marketed aggressively to consumers. Duncan asserted that Americans are not preparing adequately for retirement and that this is especially concerning with larger numbers of individuals approaching their retirement years. He also expressed concern that certain population segments are exhibiting significantly lower rates of savings than in previous years.

While some U.S. states have moved to incorporate financial education into the school curricula, Duncan expressed the importance of this trend continuing and that financial education should be taught as early in students’ academic lives as possible.

Duncan is not alone in suggesting that the U.S. lacks a sufficient urgency about financial literacy. Financial education advocates have been saying for years that financial literacy deserves a more prominent place on the national economic, social and political agendas. While there currently is greater awareness about the importance of financial education than in any other time historically in the U.S., Duncan and others are pushing hard to shine an even larger spotlight on financial literacy, which should bode well for the continued growth of the financial education industry in the years ahead.