Why Financial Education Needs Human Skills

Written by: Maddy Vonhoff, Policy & Advocacy Manager, Committee for Children, and Amy Kliewer, K–8 Program Supervisor, Financial Education Public-Private Partnership (FEPPP)

Young people want and need to learn about money! Recent assessments show that only 38% of Gen Z (born 1997–2012) can answer three financial literacy questions correctly. It’s no wonder that 6 out of 10 Gen Zs report an eagerness for more financial education.

It’s easy to see why. Today’s students are growing up in a world of digital payments, online scams, cryptocurrency, buy-now-pay-later services, and social media financial influencers (“finfluencers”). At the same time, Gen Z will become the largest and most economically powerful generation by 2030, driving $12.6 trillion in global spending. For today’s youth, financial education is no longer “nice to have.” It’s an essential life skill.

Understanding interest rates, budgeting, and saving is only part of the equation. Financial knowledge alone doesn’t drive behavior. Students (and adults!) can understand why saving matters or how a budget works yet still struggle to apply that knowledge in real-life situations. Daily financial choices are influenced by emotions, habits, relationships, and social pressures.  

It’s human skills that help bridge the gap between knowing the smart financial choice and actually making it.

That’s why Committee for Children and Washington State’s Financial Education Public-Private Partnership (FEPPP)—a K–12 educational board dedicated to expanding access to high-quality financial education for all students—are excited to partner.

Together, we’re helping educators strengthen the natural connection between financial education and human skills in the classroom.

Financial decisions are human decisions

When we think about financial education, we often think about numbers. But many financial choices have less to do with math and more to do with behavior:

• Saving for a desired item

• Resisting impulse purchases  

• Sharing resources during a project

• Recovering from mistakes  

These are all human skills in action. Financial education provides students with opportunities to apply those human skills to real-world decisions.

When educators leverage this connection, the result is rich learning experiences that prepare students not just to manage money but also to navigate toward the financial freedom to pursue and achieve their goals.  

Three human skills that support financial literacy

1. Self-regulation: Managing impulses and delaying gratification

Many financial decisions happen in moments.  

• “I was going to save my allowance, but that new toy looks awesome . . .”

• “That costs more than I wanted to spend.”

• “I need these shoes because everyone else at school has them.”

Self-regulation helps students pause, consider their options, and manage impulses before acting. Applying and practicing these skills in financial contexts can build confidence and agency in financial decision-making.  

2. Emotional awareness: The feelings behind finances

Have you ever made a purchase to improve your current mood, such as to cheer yourself up?

Have you ever felt guilt, shame, or remorse after a purchase?

Children feel these connections just like adults do. When we explicitly teach students how emotions show up around money and other resources, they’re better equipped to pause and reflect on how these feelings are influencing their decisions.  

Additionally, in an era of social media and influencers, being able to discern when your emotions and feelings are being manipulated is a key consumer skill for all generations.

3. Growth mindset: Embracing lifelong learning

Financial education is not a one-time learning experience. It’s a multi-faceted content area that integrates reading, math, social studies, and other core subjects. It’s a lifelong process of adjustments and strategies as we move through different stages of life.

Students need opportunities to practice evaluating financial options, considering consequences, and making informed choices. These same skills help them navigate everything from online financial scams to future decisions about credit cards, loans, investments, and even postsecondary education. ‍

Key takeaways for strengthening financial education

Financial education is fundamentally about decision-making

Financial education helps students make informed choices. Money is the medium, but the deeper skill is learning how to weigh options, consider consequences, and act with intention.

Students benefit when financial education starts early

Students are already making choices about spending, digital payments, online platforms, and the values behind the brands they support. Starting early gives them more time to build judgment, confidence, and habits that will serve them as financial decisions become more complex.

Knowledge is most powerful when students can put it into practice

Understanding financial concepts matters, and students also need the human skills to apply that knowledge in real situations. Self-regulation, emotional awareness, responsible decision-making, and a growth mindset help turn financial understanding into healthy, lasting habits.

An investment that compounds over time

One of the most powerful lessons in financial literacy is the concept of compounding: small actions today can create significant results over time. The same is true for human skills.

While many students don’t encounter explicit financial education until high school, Committee for Children and FEPPP recognize the importance of building foundational knowledge, skills, and habits beginning in elementary school. As students progress through their academic careers, these early learning experiences are critical for developing background knowledge and foundational skills to build on.  

Gen Z is asking for more financial education because they’re already navigating financial decisions earlier, faster, and in more complex environments than previous generations. Strong human skills turn financial education into real-world action.  

In the coming months, Committee for Children and FEPPP will be sharing additional resources to help educators strengthen both financial education and human skills in the classroom, including tools that highlight how national financial education and economics standards align with Second Step® programs.

Please contact Amy Kliewer for more information about FEPPP or K–12 financial education resources.

You can also schedule a free demo or consultation to learn more about how Second Step programs can strengthen human skills and boost student outcomes in your school or district.

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