$17.8 trillion. That’s how much Americans owe in household debt.

Experts say misunderstandings about how to use money is a major driver of that debt. In a survey by the credit monitoring agency Experian, three in five American adults said they made financial mistakes because they weren’t money-savvy.

To help people make smarter decisions, experts are urging an increased focus on financial education for young people, including making it a high school graduation requirement. More than half the states already require students take a personal finance course.

Massachusetts State Treasurer Deb Goldberg said financial education is imperative in today’s world, particularly with the rise of debit and credit cards granted to younger people by their parents.

“The parent puts a plastic card into the wallet and boom: out comes money,” Goldberg said. “When I was little, we actually got taken to the bank, and we would put a penny or a nickel into a savings account. That doesn’t happen today.”

Goldberg’s Office of Economic Empowerment has made 22 recommendations since its founding, 21 of which were enacted within 18 months. The last one is about teaching financial education in schools, an idea that has received bipartisan support but remains in legislative limbo.

Alongside experts urging more financial education, demand is increasing from teachers and caregivers.

Randy Houk, the executive director of Fit Money, an organization that provides free and accessible financial literacy to students, educators and caregivers, says demand for financial education is skyrocketing. FitMoney has nearly 100,000 participants and has partnered with organizations like American Student Assistance, the Girl Scouts of America, Boys and Girls Clubs and more. Houk says starting financial lessons with kids early is essential.

“We know that children begin developing financial habits at age 3,” Houk said. “So we feel it’s really important to start while those brains are malleable and they’re forming neurons and synapses left and right.”

Guests:

  • Deb Goldberg, treasurer and receiver general for Massachusetts
  • Randy Houk, executive director of Fit Money, an organization that provides free and accessible financial literacy to students, educators and caregivers.