WA teens push for earlier financial literacy education as debt concerns rise
Teaching financial literacy to the youth
High school juniors working to educate elementary students about financial literacy for a DECA competition this year found that teens need to learn the basic concepts about saving money and paying off debt at a much younger age.
MILL CREEK, Wash. - High school juniors working to educate elementary students about financial literacy for a DECA competition this year found that teens need to learn the basic concepts about saving money and paying off debt at a much younger age.
Why is financial literacy important for US teens today?
It comes at a time when social media is playing a critical role in influencing that generation about their finances and experts say there is an overabundance of information but not all of it is helpful to these students.
What they're saying:
"A lot of our classmates are probably financially irresponsible, you know. We’re teenagers, so we like to spend our money on a lot of different things," said Lana Weidinger, 16, a junior at Jackson High School.
What is the average debt for a young American in 2025?
By the numbers:
Data from the first quarter of 2025 from the Federal Reserve Bank of New York highlights how large debt is, including for student loans. The total household debt is now $18.2 trillion, according to the New York Fed. Balances for student loans are $1.63 trillion, according to a report from the bank’s Center for Microeconomic Data released in May. A closer look at the data shows that millions of younger borrowers already owe thousands of dollars.
"Financial literacy is something you need to start thinking about younger for it actually to make an impact with your later in life," said Tvisha Mishra, 16, another junior at Jackson High School and Weidinger’s partner on that project for the national DECA competition this year.
How TikTok, other social media influence teens to learn about debt?
A quick search on TikTok shows just how much time their generation and younger adults spend talking about debt on the popular social media app. Some users post about their joy of paying off their debt, while others share the struggle to manage such large amounts of money that they owe. All have thousands of views and comments.
How much student debt do young borrowers carry in WA?
Big picture view:
According to the Department of Education, 1.9 million Americans who are 24 years old or younger owe between $5,000 and $10,000 in debt. For the 25 to 34 age group, 3.19 million borrowers owe between $10,000 and $20,000. Federal student aid information available from 2024 also provides a snapshot of how much young people in Washington state owe based on age. For the 24 and younger age group, 100,200 borrowers owe a combined $1.28 billion, while in the 25 to 34 age group, 268,000 borrowers owe a total of $8.58 billion.
Why is financial education in the US harder for today's students?
Local perspective:
"Back in the day, it was much harder to get credit cards. I mean everywhere, every store, it seems, has a credit card," said Stacey Black, the lead financial educator for BECU. She has worked on helping students and young adults with financial literacy for 30 years. "We teach classes on fraud in high schools and some of the stories I hear – I'm just glad I'm not in high school right now."
Black says social media and the overbalance of information is the biggest issue for this generation, because it hasn’t helped them to understand important concepts like carrying a balance. In Washington state, the Department of Education reports that 163,800 borrowers owe between $10,000 to $20,000 and 169,100 borrowers owe between $20,000 and $40,000. Black says everyone will feel the impact of this generation’s understanding and ability to handle credit and debt.
"These are going to be future policymakers, right?," Black said in an interview with FOX 13. "They’re going to build our communities, and so we want them to have that strong financial footing and education to start, so it just makes it better for everyone in the future."
Do US teens value financial success in 2025?
But the students at Jackson High School say right now they don’t see financial success as part of the goals their peers are pursuing on their journey to adulthood. Black says that what this generation values may be different from their parents, but the need to learn the basic concepts and ask for help is crucial. The consumer credit reporting company Experian has calculated that the average American owes more than $40,000 in student loans and credit card debt. Student loans account for $35,208 on average, while credit card debt is $6,730, according to data from the third quarter of 2024. So, in an era with social media pushing out so much information out there and the increasing threat of fraud, she hopes the stigma around having debt and speaking up about it goes away.
"I made huge mistakes right off the bat out of high school. I got into major debt," Black recalled. "This happens to a lot of people. Don’t be ashamed. If you keep it quiet, that’s when it becomes a problem."
How parents should teach financial education to their children
Black shared her top five financial education tips for parents with FOX 13:
1. Set financial goals
When kids have a goal, they're more likely to stick with saving. It gives them something to be excited about.
2. Model smart financial behaviors
Let them see you budget, save and research spending choices. They're always watching, even when you don't think they are.
3. Let them learn through mistakes
Small mistakes now teach big lessons later. Talk it though and help them learn from it.
4. Emphasize savings
Helping kids learn to save teaches them patience, planning and pride in reaching their goals.
5. It's never too early (or late) to start!
Whether they're 5 or 18, it's never too early – or too late – to start teaching about money.
The Source: Information in this story came from the Federal Reserve Bank of New York, the U.S. Department of Education, Experian, BECU and original reporting by FOX 13 Seattle.
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