Research has consistently shown that lower financial literacy correlates with less optimal financial behaviors, impacting everything from savings rates to debt management. Individuals who lack financial knowledge are more likely to engage in costly financial behaviors like accruing higher-interest debt and not paying credit card balances in full each month. This lack of knowledge also contributes to difficulties in managing and planning for future financial needs, such as retirement or emergencies.

Financially literate individuals, on the other hand, are generally better at managing debt and are more likely to engage in positive financial behaviors such as investing and saving effectively. They are also more adept at making informed decisions about complex financial products, which can lead to greater wealth accumulation over time. Studies have found that enhancing one’s financial literacy can significantly influence their financial well-being by enabling better decision-making that supports long-term financial security.

The consequences of low financial literacy can be particularly severe for younger generations who face a variety of financial challenges, including high student debt and the complex landscape of modern financial services. There is a strong case to be made for integrating comprehensive financial education into school curriculums to better prepare younger generations for the financial decisions they will need to make in the future【】【】

While specific statistics on the financial struggles of children with no financial education or literacy may be limited, there are several studies and surveys that provide insights into the broader impact of financial education on young people’s financial behaviors and attitudes

1. **Financial Literacy and Youth Debt**:

-The National Financial Educators Council’s 2021 Youth Financial Literacy Statistics Report found that 79% of students ages 15-18 believe they would benefit from financial education courses in school.

-A survey by the Council for Economic Education found that only 21 states require high school students to take a course in personal finance.

-According to a survey by Junior Achievement USA, 55% of teens expect to be able to support themselves by age 25, yet only 30% have a budget.

2. **Impact of Financial Education**:

   – Research by the Consumer Financial Protection Bureau found that students who received financial education in high school were more likely to have positive credit outcomes and less likely to fall behind on payments.

– A study published in the Journal of Consumer Affairs found that financial education programs for youth led to improvements in financial knowledge, attitudes, and behaviors.

These statistics highlight the importance of financial education for children and youth in building their financial knowledge and skills to navigate the complexities of personal finance responsibly and avoid potential financial struggles later in life. While direct statistics on children’s debt may be scarce, the broader evidence suggests that financial education plays a crucial role in shaping financial behaviors and outcomes from an early age.