News

As Financial Literacy Month kicks off, it is important to take a step back and remember why increasing financial acuity is steadily growing in importance. Today’s digital world has fundamentally altered the ways in which consumers interact with their money. Spending has been streamlined by credit cards and other digital means of transacting, online shopping makes it easier to impulse buy from the comfort of your living room, and apps like Robinhood and Acorns allow everyone to participate in the stock market and invest (or lose) their money more effortlessly than ever.

In short, holding onto cash is something today’s consumers struggle with like no other generation previous, and while this tech-driven monetary environment is obviously a natural progression toward tomorrow’s society, it is also a progression that most people are markedly unprepared to navigate. According to Investopedia, recent financial literacy studies issued by the Financial Industry Regulation Authority (FINRA) suggest widespread financial ineptitude as just over a third of those tested managed to answer four or more questions on their tests correctly₁.  

While this may seem alarming, it is important to note that substantial gains have been made toward a more financially astute society. Last summer, CNBC reported that 25 states introduced personal finance education legislation in 2021 alone₂. This year, that momentum continues as Florida lawmakers unanimously approved a bill which makes taking a financial literacy course mandatory for high school graduation₃. Likewise, Michigan State Rep. Dianna Farrington, chair of the House Financial Services Committee, has proposed adding financial literacy to the state’s high school graduation requirement as well, according to NPR Michigan Radio₄.

As we observe Financial Literacy Month throughout April, the MICPA will continue to explore the current state of financial literacy, including developing areas of focus, policies and various ways members can bring this important issue to the fore in their own organizations and communities. Find out how you can take it further this year by logging in to MICPA Connect and inquiring about how you can get involved with the MICPA Financial Literacy Task Force. Follow our social channels throughout the month of April for more articles, updates and perspectives and to share our tips with your clients, family and friends. Every little bit helps!

1. Zucchi, Kristina. “Why Financial Literacy Is So Important.” Investopedia. 31 Jan. 2022. Accessed 11 Mar 2022.
2. Reinicke, Carmen. “25 States Have Introduced…” CNBC. 3 Jun 2021. Accessed on 11 Mar. 2022.
3. Reinicke, Carmen. “Florida Lawmakers Unanimously Approve…” CNBC. 9 Mar. 2022. Accessed on 11 Mar. 2022.
4. Pluta, Rick. “Lawmaker Calls for State Financial Literacy…” NPR Michigan Radio. 15 Nov. 2021. Accessed on 14 Mar. 2022.