Financial literacy is the cornerstone of any smart relationship with money. Knowing how to budget, save, borrow and invest is as essential as knowing how to read or write in today’s economy.
Learning those skills marks the beginning of a lifelong journey of managing finances confidently. It poses an opportunity for public schools to prioritize financial literacy the way they do math, reading and science. Eighty-eight percent of adults in the U.S. did not feel prepared to manage money when they graduated from high school, and even now, only about 57 percent of them would call themselves “financially literate.”
The numbers drop even further when we look globally, at only 33 percent of the world’s population claiming to have a solid understanding of basic financial concepts. If these topics had been part of the curriculum from the get-go, perhaps those numbers might be stronger today.
Instilling practical financial literacy skills early on equips students to make responsible financial decisions, avoid high-interest debt and build a more secure financial future. The practices increase the likelihood of accruing wealth over time, setting students on a clear path toward success. Earlier generations lived in a simpler financial world. Most transactions were in cash, and only the affluent had access to loans.
Loans, credit and debit cards, and electronic transfers are the norm now, and even in brick-and-mortar stores, cash is only used for about 11 percent of the transactions. The takeaway: Establishing a solid relationship with one’s bank is more important than ever, providing the guidance and support needed to cultivate success. That is where community banks make a unique difference. Unlike larger institutions, they directly invest in the future of the areas they serve, which includes helping young people open savings accounts and teaching them how credit works.
Community banks build personal connections that make their customers feel like someone is walking beside them as they grow, something that is especially invaluable during a stage of transition.
Citizens Bank recognized how important it is for youth to foster that kind of relationship and launched its Bank in a School program at Southside Charter High School in Batesville in 2023 to help students begin their financial journeys early. The system provides participating students with hands-on experience in areas such as personal savings, credit scores, budgeting, financial management and banking operations. It was the first program of its kind in the state and is among less than 1 percent of banks nationwide to offer something like it.
The benefits of the program extend far beyond the individual. A financially literate generation strengthens the economy by preparing young entrepreneurs to launch businesses responsibly and helping new families make smarter choices. When young people understand how money works, they are better equipped to fuel economic growth and stability for their state and communities.
This October, Citizens Bank will launch its third year of the program at Southside Charter High School. The program has given students something most adults never had: a safe, immersive environment to learn money management while simultaneously running a real bank branch inside the school. Students who have graduated from the program say it gave them confidence to approach adulthood. It empowered them to move forward by opening their first savings account, being able to explain how credit works and learning to balance budgets.
They leave the program feeling prepared for life’s first big financial decisions, which have the power to either set them back for years or set them on an upward trajectory. Eleven students have gone through the program since its launch. When the program starts back up for the 2025-2026 school year, it will continue breaking new ground on Arkansas education, workforce readiness and financial security. That should be the standard, not the exception.
While several banks have followed Citizens Bank’s lead, Arkansas contains more than 300 high schools, and many students leave feeling unready to manage adulthood. Generation Alpha, an umbrella term for individuals born between 2012 and now, has been projected to turn the financial world on its head. The oldest of the group are currently 13, but even now, they realize the role money will play in their lives.
About 77 percent of them consider it cool to be financially savvy, and 91 percent believe financial knowledge and skills are necessary for meeting their life goals. An education system that meets them where they are ensures they can thrive in a modern system so significantly controlled by money.
After all, every student deserves the chance to graduate having tools that will help them in the years to come.
Sandy Starnes is a senior vice president and director of marketing at Batesville-based Citizens Bank. Starnes serves as a board member of the Independence County Public Education Foundation, IMPACT Independence County, BankOn Arkansas+ and the American Bankers Association Professional Development Advisory Board. She was also appointed to the American Bankers Association Emerging Leaders Advisory Board of Directors in 2017 as Arkansas’ sole representative.
READ ALSO: Yurachek at LRTDC: Hogs Right to Avoid NIL’s ‘Third Lane’
