Arkansas Making Strides to Promote Financial Literacy Early

When it comes to finances and planning for the future, it might be fair to describe contemporary America as a kick-the-can-down-the-road culture. That approach may be changing for the better, at least in Arkansas, thanks to the work of nonprofit groups such as Junior Achievement and the state’s establishment of a financial literacy requirement for students.

With so many Americans living check to check, nest eggs are perhaps harder to build than ever. Recently released data from Forbes Advisor revealed that more than 1 in 4 Americans — 28 percent — have savings of less than $1,000 on which to fall back on in an emergency. Broken down by generation, the Forbes survey found that 32 percent of Gen Z’ers reported savings of less than $1,000, followed by 31 percent of millennials, 27 percent of Gen X’ers and 20 percent of baby boomers.

The generational pattern is clear: Younger generations are not as committed to saving, simply cannot afford to save or were never taught to do so.

The Forbes data also found that “standard savings accounts are the most popular vehicle across the four generations surveyed, while high-interest options like high-yield savings accounts or CDs are less common.”

The survey also broke down the most popular reasons behind saving for each generation. At 22 percent, the highest percentage of Gen Z’ers reported a focus on saving for a car; millennials at 25 percent and Gen X’ers at 28 percent were focused on starting or enhancing emergency funds; and baby boomers (30 percent) were saving primarily for retirement.

Roughly half of all survey respondents reported expecting to save the same amount of money or less in 2024 than they did a year ago, while rising costs of living (66 percent) and debt repayment (31 percent) were cited as the primary barriers to saving more.

Victor Werley, financial planner and owner of Pinnacle Advisors in Little Rock, said he believes the kick-the-can mentality is beginning to change for the better.

Victor Werley

“Unfortunately, things like inflation, career turnover and economic slowdowns have forced many people to pay much more attention to their finances,” he said. “Also, the generation shift is causing many young people to face issues that their parents and grandparents did not have to face, which means they can’t rely on advice from family as much. This makes professional advice all the more important to get out into the public.”

Many baby boomers were not taught about finances or economics while in school, but work is being done to change that for younger generations.

Tonya Villines, president and CEO of Junior Achievement of Arkansas, said significant strides have been made in 2024 toward promoting financial literacy among young people.

Tonya VIllines

“Our focus is on transforming financial knowledge into actionable skills, empowering teens to take control of their financial futures,” she said.

Villines cited JA’s findings from its 2022 survey of JA program graduates, which found that 78 percent of teens cited money as a major stress factor influenced by their families’ financial situations; 80 percent of surveyed teens said they believed increased financial knowledge would positively affect their outlook on life; 82 percent of youths who went through a JA program reported feeling confident in their finances; and 68 percent of JA alumni reported achieving financial independence from their parents before age 30.

“These results underscore the importance of JA’s mission to provide hands-on financial education, preparing students for real-world financial responsibilities,” Villines said.

Arkansas instituting a financial literacy requirement in 2021 has helped, Villines added. All high school students in Arkansas are required to complete a course in financial literacy before graduation.

“The initiative is part of a broader effort to help ensure that students graduate with the essential knowledge and skills needed to manage their finances effectively,” Villines said. “This course covers critical topics such as budgeting, saving, investing, credit management, and understanding loans and interest rates. The financial literacy content is integrated into economics or social studies courses, although some schools offer it as a stand-alone course. The curriculum is practical and applicable, helping students navigate real-world financial decisions.”

Volunteers at Junior Achievement of Arkansas visit classrooms to teach students about managing their finances. (Photos provided)

The initiative also complements JA’s work in local schools to help future generations be more prepared regarding their finances. JA and its corporate partners send volunteers into classrooms from the primary grades to high school to help teach students the benefits of becoming financially literate at an early age.

“Studies showed that many students were graduating without a basic understanding of personal finance, leaving them ill prepared for financial challenges in adulthood,” Villines said. “This requirement reflects a commitment to improving financial outcomes for Arkansas students, equipping them with the knowledge they need to make informed financial decisions throughout their lives. Among JA alumni that have previously participated in our JA financial literacy program, 90 percent are confident managing money.”

Werley said he sees kids today receiving most of their financial education from family, friends and various online sources.

“This can be potentially good because there is a wealth of information available online, but it is also a challenge because it can be hard to separate good information from bad,” he said.

He agreed that younger generations now place more emphasis on financial literacy, and that is key.

“A lot of work has been done by some very dedicated people in the public and private sectors to increase access to financial knowledge, and it is starting to show,” he said, adding that work remains to be done educating adults.

“The needle is starting to move, and many people are seeking out knowledge, but there is still much work to be done,” he said. “Educational channels for adults who are no longer in school are harder to come by, but I am confident that we will continue to make progress.”

Since she joined JA in 2010, Villines said she has seen transformative growth in the organization’s reach. JA Arkansas had a reach of roughly 8,900 students annually when she started and now engages 29,000 Arkansas students each year, she said.

“This growth not only reflects the hard work and dedication of our staff and board of directors but also underscores the increasing recognition of the importance of financial literacy education, experiential learning and building a strong statewide talent pipeline,” she said. “The impact is not just quantitative in the increased numbers. Qualitatively, it represents a deeper integration into the community and education system, fostering a generation that is better prepared for the challenges of the modern economy.”

In addition to JA’s expanded outreach, Villines cited other factors moving the needle, including JA’s help to increase specific learning experiences for students across the state.

“The organization now offers over 1,000 learning experiences compared to fewer in previous years. This indicates a broader and more diverse range of programs tailored to different age groups and educational needs,” she said.

JA now partners with 16 Arkansas school districts, including the three largest — Springdale Public Schools, the Little Rock School District and the Pulaski County Special School District.

“This expansion ensures that JA’s programs are accessible to a larger and more diverse student population,” Villines said. “We have earned the trust and credibility of numerous district partners across the state.”

She also noted JA’s “robust volunteer network” and corporate partnerships are essential to the organization’s success.

“The volunteer network has grown to 500 individuals who collectively contribute over 75,000 contact hours annually,” she said. “This substantial volunteer involvement enhances the delivery and effectiveness of JA’s programs, providing students with real-world insights and mentorship. Many businesses and corporations partner with Junior Achievement, providing essential financial contributions. These partnerships often include sponsorships for specific programs, events or initiatives, enabling JA to offer its financial literacy, workforce readiness and entrepreneurship programs to students at no cost.”

JA also receives private and government grants, which are directed toward expanding program reach, developing new educational materials and supporting underprivileged communities, Villines added. Plus, the JA Arkansas volunteer board includes some of the state’s business heavy hitters (including AY Media Group publisher and president Heather Baker), each of whom is dedicated to the cause.

Volunteers at Junior Achievement of Arkansas visit classrooms to teach students about managing their finances. Seen here, AY President and Publisher Heather Baker. Photo by Ryan Parker.

“The combination of financial support and volunteer engagement allows Junior Achievement to effectively deliver its mission, reaching more students and making a lasting impact on communities across the country,” Villines said.

Progress is underway, but work remains to be done. Villines said JA strategies include integration of financial education into more school curriculums, developing more partnerships with local businesses and organizations, and applying more resources to help spread the word.

“Introducing financial literacy at an early age can help normalize these concepts,” she said. “Incorporating basic financial principles in elementary and middle school curriculums can set the foundation for more complex topics in high school. Encouraging businesses to sponsor JA financial literacy programs in schools or communities can increase their reach. Companies can also offer volunteer hours for employees to teach or mentor students, and sharing success stories from individuals who have benefited from financial literacy education can personalize the message and demonstrate its real-world impact.”

Villines added that mobile apps and online platforms that promote financial literacy and help make learning interactive and accessible can engage people of all ages.

“These tools can offer budgeting exercises, quizzes and real-life scenarios to practice financial decision-making. JA has a great mobile app, JA Connect — connect.ja.org — that is free and allows students to build a budget and money-management tools,” she said. “By combining these efforts, we can create a comprehensive approach to spreading the word about financial literacy and ensuring that everyone understands its importance in building a secure financial future.”

Werley said helping America out of its financial doldrums requires many steps, including recognizing everyone’s financial situation is unique and complex. The first step, he said, oftentimes boils down to simply being willing to talk about finances.

“There are no universal solutions,” he said. “I believe parents should share their financial experiences with their children but also understand that what worked in the past may not work in the future. The process of buying a house or paying for college looks entirely different today than it did for the baby boomer generation. However, the key is to have the conversation. The more we all talk about money, the more we will all learn.”

FEATURE IMAGE TOP: Arkansas high school students are now required to complete a course in financial literacy before graduation.