DIVERSITY, EQUITY, & INCLUSION

How Financial Advisors Can Help Develop Financial Literacy among Children in Underserved Communities

By Mac Gardner

Here’s a little-known fact about financial literacy. Only 15 states required a financial literacy course to graduate from high school as of August 2022.1 They are Alabama, Florida, Georgia, Iowa, Michigan, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Rhode Island, South Carolina, Tennessee, Utah, and Virginia. Did your state make the list?

If you are lucky enough to live in one of the 15 of 50 states that offer this benefit … great! But here is a consideration even if you are in a state with that life-changing offering. A University of Cambridge research study2 shows that a child’s connectivity with money starts as early as age 7, according to a press release from the Money Advice Service. So if you live in a state that doesn’t offer any financial literacy courses until a student’s senior year, when they are typically 17 or 18 years old, there could be a 10-year gap of wasted time during which the student receives some information, no information, or misinformation about managing money. In my opinion, financial advisors in local communities can help fill that gap.

As a Certified Financial Planner™ practitioner who has worked in financial services for over 20 years, I found that one of the big issues facing my clients was a lack of financial education—education that could have the greatest impact if it started in elementary school. They were fortunate to have good jobs, live within their means, and have access to corporate retirement plans. However, they were not versed in basic concepts of personal finance, life insurance, or investments. One of the common responses I would get as an advisor was, “I wish I started saving money earlier in life.” Or folks would say, “I wish someone had taught me about money earlier in life.”

The Power of Books

I created a book called The Four Money Bears after a client asked me for a tool to help parents start conversations about money with young children. These four bears—Spender Bear, Saver Bear, Investor Bear, and Giver Bear—represent the four basic functions of money. They help to teach children in grades K–5 that they have options when they get money. It’s not just a spend-it-all or save-it-all proposition. They can also invest money or give it away.

My next step was testing this book at my children’s elementary school. Not only did the kids enjoy the book, but the teachers and school administrators also loved it too. They told me they had never seen a book that made the four functions of money so easy to understand and fun for children that age, and they enjoyed the way the four bears represented money personalities. This experience started my journey as a financial literacy evangelist and influencer. I now lead book readings to elementary schools around Houston, nonprofit organizations, and community education programs.

What You Can Do

Financial advisors work with financial concepts and solutions daily. They provide guidance to adults when it comes to budgeting, investing, banking, insurance, and much more. What if these advisors brought these conversations to children? Fortunately, there are numerous books to share: for example, Milton the Money Savvy Pup by Jamie A. Bosse, CFP®, Stock Explore by Nicolette DiMaggio, and my The Four Money Bears.

For example, imagine financial advisors across the country participate in the Great American Teach-In, a day on which community members visit local schools, to read students a book about money. Imagine how many children would learn about money in a new way at an early age. Imagine how many young people would learn about a wonderful career possibility in financial services.

As a man of color in financial services, I would be remiss if I didn’t bring attention to the need for more financial literacy in overlooked and underserved communities. My parents did not come from wealth. My saving grace was a father who attended Howard University and received his MBA from New York University. Financial matters were spoken about in my home on a regular basis. (I truly believe that all we are at the end of our days is a collection of stories.) I heard conversations and stories about balance sheets, income statements, leverage, and cash flow. The vast majority of children will lack a financially savvy parent who discusses these topics at dinner. Financial advisors have the power to bring these impactful stories to children who otherwise may never hear them.

Here are some more types of events where you can reach children, including children in underserved communities:

For more on holding money conversations with children, see “Having the money conversation with your kids” in the April 2022 NAPFA Advisor.

Take one of these steps soon!


1. “Which States Require Financial Literacy in High School?” Ramsey Solutions (Aug. 2, 2022). 
2. “New Study Confirms Adult Money Habits Are Set by the Age of Seven Years Old,” Money Advice Service (May 23, 2013). 

Mac Gardner, CFP®, is founder and chief education officer at FinLit Tech. Contact him at mac.gardner@finlittech.com.

image credit: istock.com/Nadezhda1906