CLEVELAND, Ohio – The Global Financial Literacy Excellence Center and the TIAA Institute surveys adults annually to measure financial literacy.

Despite increased attention and focus on the need for additional financial literacy, the results of the 28-question survey show knowledge isn’t increasing.

Serving as the moderator for a Fed Talk Thursday afternoon, Davonta Milbry, education outreach coordinator for the Federal Reserve Bank of Cleveland, said 2024 results showed on average participants could only answer 48% of the questions and the figure has remained around 50% since the survey began in 2017.

A product of the Federal Reserve Bank of Cleveland, The Fed Talk speaker series is held virtually and covers a wide range of economic topics affecting businesses, communities and individuals.

Panelists participating Thursday talked about the  importance of financial literacy in their careers.

Jacqueline Gamblin, CEO of JYG Innovations and Class B director, board of directors, Federal Reserve Bank of Cleveland, pointed out financial literacy leads to increased confidence and career flexibility.

“Once you can read that income statement, that balance sheet and you look at that forecast, you understand all of the sudden and that’s what changes your career path, because you no longer feel like there’s so many barriers to other opportunities,” Gamblin said.

Financial literacy is important for young adults to understand financial documents, accept a student loan, apply for a credit card, buy a first home or determine if a job offer or career path will financially get them to where they want to go long term.

Khaz Finley, education outreach manager with the Federal Reserve Bank of Cleveland, said in his early career working with grants, he learned grantors want grantees to be accountable for every dollar and show proof of performance. At some point he connected that he also needed to be doing that in his personal life.

“It helped me and my wife when we were early in our careers and we were able to buy a home early … It trickles into your everyday life as you’re managing and navigating the ups and downs,” he said.

Joel Philistin, director of the Financial Wellness Center at the University of Pittsburgh, also talked about his experience in college, where someone on campus would give students a T-shirt and a slice of pizza, while signing them up for a credit card and a DVD club. He learned quickly about what happens when there is an automatic withdrawal and the money is not available. He eventually found most of his paycheck was gone before he even got it.

Working at a bank starting his junior year, Philistin said he learned the skills he needed to get control of his finances.

Emily Turner, director of Choose Ohio First at the Ohio Department of Higher Education, said her father gave her an old book about managing finances, which she never opened. But it got her thinking. Her employer early in her career offered deferred comp and she did not even know what it meant at that time.

“I ended up taking a six-week personal finance course to just understand what all of these things were,” Turner said, adding it allowed her to learn she really enjoys working with money, budgets, financial forecasts and loans. “Understanding how money works impacted me personally… That crusty old book that never got opened was a life changer.”

Although there has been an ongoing effort to expose more students to money concepts, some starting in kindergarten, those who were uninterested in the subject may have missed out. Beginning with those entering ninth grade on or after July 1, 2022, Ohio graduation requirements require students to earn a one-half credit in financial literacy.

Finley points out financial literacy in many ways is becoming tied to career exploration programs, giving students a chance to look at possible future salaries as opposed to accreditation opportunities, four-year, two-year and other options. And when recent graduates find they are making large amounts of money, Finley said it is important for them to know how to best manage that money so they can contribute to the economy and to their communities.

The panel also talked about the importance of being continuous learners, especially when it comes to new financial technology and the technology that is changing many careers. Knowing what the tools are is not enough if someone is not willing to use them.

“Just learning the financial fundamentals and then actually having the confidence to use them and transfer them to different areas in life will definitely lead to financial freedom,” Milbry said.

In making college decisions, Philistin says he sees students who want that college experience and to feel connected to their campus, but affordability needs to be part of their decision. While he feels borrowing helps those unable to afford access to college or other things they want to buy and builds credit, it is also important not to overborrow.

“I’ve seen students who have become student loan adverse,” Philistin said. “So, taking the moment to also have a conversation about how much do we need to go ahead and pay for an apartment for example… We have our students asking us, how do I start to budget this first paycheck?”

Students leaving high school and looking at career paths have big fears and apprehensions about exploring possible careers while taking on student loans and the other bills, according to Finley.

“We need to really eliminate that anxiety and say, you don’t have to just do that. You can explore something and just make sure you’re making the right financial decision for yourself, so that you can actually pay it back and you can continue to grow throughout your professional career,” Finley said.

Milbry emphasized that a career may involve job changes and many steps and building blocks.

“Your vision and dreams can always change, but know that the skills that you have can also transfer to your next dream or your next step,” Milbry said.

Turner pointed out financial literacy is about understanding financial aid packages, different pathways to pursue education or certificates and scholarships. But it’s also about learning to ask questions and negotiate even when you are intimidated.

Philistin noted there can be several obstacles to financial wellness, including the way someone views money. While one person may feel they must have the latest and greatest and better than their neighbors, at the other end of the spectrum are those who are money hoarders. Learning to find balance and see and talk about money as a positive thing can be important.

“Behind these numbers, there’s also a person. And a person has these emotions and they have their social influences and they have their upbringing,” Philistin said. “So, over this past year, we’ve been a little bit more intentional about talking about the financial psychology.”

Overall, there are reputable tools and even podcasts that can help with career paths, budgeting and financial understanding, but the panelists emphasized “reputable.” The latest social media influencer may not be credible.

Gamblin recommends a podcast called Catching up to FI, which talks to those who may be starting later in life on a journey to financial independence and retirement planning.

Additionally, the panelists spoke about the importance of networking, internships and finding a mentor to their career paths and financial wellness.