Did you know that 78% of teens experience financial stress? Research by Junior Achievement USA shows that many adolescents worry about money well before adulthood. As our economy becomes more complex and college tuition continues to rise, many students at Santiago High School are already thinking about how they will afford their future. Understanding how money works is becoming a vital life skill for teenagers preparing to enter adulthood. Through our education system, we can create a generation ready to succeed. Financial literacy can help teenagers learn to save, understand money, avoid debt, and prepare for financial responsibilities that accompany adulthood.
Preparing for the Future
Financial literacy prepares teens for real-life challenges. Many students plan on attending college, but the cost can be high. Unfortunately, student loan debt is the second-largest consumer debt in the United States, according to the Education Data Initiative. “I decided I need more money for college than for the things I want to buy,” said Stoyanowski. By making smart decisions and staying true to goals, students can start healthy habits early. Beyond education, housing dominates the American economy. A survey by Junior Achievement, the USA, and Fannie Mae found that 88% of teens want to own a home someday. However, only 45% could explain what a home mortgage is, and 76% said they don’t understand credit scores. These numbers reveal the lack of education in our system and highlight the false expectations our society cultivates. “It is so important to know the laws about money so you can’t get taken advantage of, and keep track of everything so you don’t make careless decisions,” underscored Stoyanowski.
Understanding the Value of Money
The first step of financial literacy is understanding the value of money. Studies show that 87% of teens understand the importance of saving, yet only about 42% have started saving, according to Net Gen Personal Finance. For many students, having a job can teach that lesson firsthand. Senior Greyson Stoyanowski works as a buster for a local restaurant and has already begun saving for college.
“I try to save at least 75% of my paycheck, but I can struggle with that. Through working, I learned how much gets taxed and how to deposit a check,” said Stoyanowski. Even without a job, students can begin building healthy habits. However, not all students develop these habits early. Senior Delores Jackson admits that spending often feels more rewarding than saving. “Since I usually get money for my birthday instead of gifts, I treat it like something to spend on whatever I want,” she said. Asking simple questions before making purchases can go a long way. For example, “Do I really need this?” “Am I prepared for a sudden life change?” and “Am I paying myself first?” Simple introspection can spark necessary change and create healthier boundaries with money.
Avoiding Debt and Financial Problems
Learning to manage money early can also help teenagers avoid common financial pitfalls. A study done by the Federal Reserve Board concluded that 77% of American households have some form of debt. Some argue that teens shouldn’t worry about adult financial problems yet, but experts counter that starting good habits early helps prevent the debt traps that affect many families. “When I started working, I realized how easy it is to spend a lot of money when you have it, and how important it is to limit yourself,” Stoyanowski said. “Debt is all too common, and it can trap you so quickly.”
However, saving money can be difficult in a society that encourages spending. The United States has the largest marketing and advertising industry. According to Statista, U.S. marketing spending surpassed $550 billion in 2024 alone. Through social media and digital advertising, Americans are constantly targeted by advertising that motivates impulse spending. This influence is especially strong for teenagers. “Social media, especially TikTok, is always showing you things you want to buy,” said Jackson. PLOS ONE concluded that the main platforms, such as YouTube, TikTok, Snapchat, and Instagram, collectively generated $11 billion from users under 18 in 2022.
What Can We Change?
Santiago High School can take a major step by expanding financial literacy opportunities, such as electives or workshops, through programs like Junior Achievement. Offered at many California schools, JA Financial Literacy teaches students how to budget, understand credit scores, and build a better economic future. Students can also begin healthy habits today by saving a part of their income, tracking spending, and asking questions. Financial freedom doesn’t begin in adulthood; it starts with the choices teenagers make today.
Although these statistics are concerning, they underline a clear opportunity for positive change. Let’s commit to teaching financial literacy early—through support for classes, mentorship programs, or practical activities—so every student graduates empowered to make sound financial choices. Take action now to equip teenagers with habits and knowledge that will secure their financial futures.
