Should Washingtonians and the rest of Americans be left ignorant about managing personal finances? When I founded the Society for Financial Education & Professional Development (SFEPD) in 1998, the implication was often “yes.” People asked why I bothered teaching personal finance, suggesting it wouldn’t change lives.
But my experiences at work, with family, and in my community told me otherwise. I could see how financial literacy, or its absence, affects people’s ability to weather emergencies and downturns and make the most of their income. I knew financial literacy could help people improve their situation, even when other barriers existed. And I could see that America faced, and still faces, a financial illiteracy crisis.
Financial literacy wasn’t a well-known term in the 1990s—no study documented its positive effects. Yet, as I taught and watched other SFEPD educators teach, I knew it worked. I saw the light bulb go off for students and heard stories about how they started budgeting or investing because of what they learned.
Now, SFEPD has an independent evaluation study by ICF showing what I’ve always known: financial education is not a waste of time. It provides a life skill that changes lives.
The study found that SFEPD learners with extended financial education saw large gains in knowledge, confidence, behavior, and well-being. Learners who participated in other SFEPD programs also improved. Our most intensive effort is training HBCU college students to become Student Ambassadors. They teach personal finance to their peers and community members.
The results are compelling. SFEPD Ambassadors scored 32% higher on a financial well-being measure than a comparison group drawn from FINRA Investor Education Foundation’s 2024 National Financial Capability Study. Other SFEPD learners scored 17% higher. Our Ambassadors scored 132% higher on an objective financial knowledge assessment, and other SFEPD learners scored 35% higher. Notably, 92% of SFEPD Ambassadors and 73% of other SFEPD learners reported feeling confident in achieving financial goals, compared to only 61% of the comparison group.
On specific behaviors, SFEPD Ambassadors were seven times more likely to make student loan payments on time, while other SFEPD learners were two times as likely. Our Ambassadors were five times more likely to maintain a rainy-day fund and 2.5 times more likely to have a retirement plan. Many learners shared their knowledge with family and friends, creating a ripple effect of learning.
This study adds to the growing body of research showing that financial education works. Since financial education is a lifelong journey, I hope those reading this will take action to learn more themselves and to help others learn.
Financial education is a lifelong journey. I encourage readers to continue learning and to share what they know with others. Our experience offers lessons for program designers: tailor programs to the audience, ground them in the community, and use peer-to-peer education to break down barriers and taboos around money.
Those who asked me why I bothered teaching financial education, the answer is now clear. Lives are transformed and communities are strengthened. To see more visit about the study go to www.sfepd.org