Financial literacy: 2024 reflections and 2025 predictions
But is anyone paying attention to the risks? Not young adults.
Photo by Gantas Vaičiulėnas
While the financial industry is flooded with predictions every December and January, I wanted to take a step back and let the first months of 2025 unfold before weighing in. Now, with early-year developments providing a clearer picture, let’s assess where we stand and where we’re headed in financial literacy.
2024 recap
1. Persistent financial literacy gaps
Despite efforts, financial literacy rates remain stagnant. The TIAA Institute-GFLEC personal finance index shows U.S. adults correctly answered only about 50% of financial literacy questions, a figure mirrored in Canada, where gaps persist despite government and institutional initiatives.
2. Credit union initiatives in financial education
Credit unions remain committed to financial literacy, with over 50% of U.S. credit unions offering financial education programs in 2024. However, attracting younger members remains a challenge. In Canada, organizations such as the Canadian Credit Union Association (CCUA) support financial literacy programs, but Canadian credit unions also face difficulties in appealing to younger demographics amid competition from digital banks and fintech firms.
3. Gaps in school-based financial literacy education
Financial education in North American schools remains inconsistent. While some U.S. states and Canadian provinces have implemented financial literacy curriculums, the quality and depth vary significantly, with some programs offering comprehensive content and others failing to provide the basics of practical knowledge.
4. Challenges in financial well-being
Economic recovery has been uneven, and many individuals, especially Gen Z, struggle financially. Consumer debt levels in the U.S. and Canada broke records in 2024, driven by rising interest rates, inflation and increased reliance on credit. Many lack the financial skills to navigate these challenges effectively, leading to financial stress and instability. Young adults also face the burden of student loan debt and an increasingly unaffordable housing market, making financial education more essential than ever. At the same time, social media has emerged as a primary source of financial education for young people, with platforms like TikTok and YouTube influencing their financial perspectives—sometimes accurately, sometimes not.
5. Educational mandates and credit union support
More states and provinces are mandating financial literacy in schools, though the quality of these programs is mixed. Credit unions continue playing a key role in financial education, partnering with providers to offer resources and community-based programs.
Predictions for 2025
1. AI’s growing role in credit union operations
AI promises to drive credit union efficiency, improving member experiences and diverting resources for strategic initiatives, including financial literacy. AI-powered education tools will personalize learning, helping credit unions better engage with members.
2. The expansion of video-based financial education
Video will remain the dominant content format, with TikTok, Instagram Reels, YouTube Shorts, LinkedIn, and Threads driving engagement. Credit unions that prioritize video-based financial education will better connect with younger audiences.
3. Credit unions and the membership challenge
Credit unions will continue to make inroads to attract younger members amid competition from digital banking options. Those embedding financial literacy into school programs will gain a competitive advantage in engaging future generations and ensuring long-term viability, but also exploit one of the most cost-effective member acquisition strategies available.
4. Financial literacy stagnation and societal challenges
Without targeted action, financial literacy levels will likely remain stagnant. Barriers include banking deserts, predatory lending, cultural divides, and a lack of comprehensive financial education. Advocacy efforts will be critical in addressing these systemic issues. Credit unions, as one of the most agile strategic operators in the industry, are best positioned to exploit this opportunity.
5. Increased focus on financial inclusion
Immigrant communities face additional financial challenges, including language barriers and unfamiliarity with North American banking systems. In 2025, credit unions will likely expand efforts to provide multilingual resources and tailored financial education to bridge these gaps.
Let’s talk about the future of financial literacy
If you’re a credit union leader looking to enhance financial literacy for your members and your community, let’s connect. At Currency Marketing, we’ve developed It's a Money Thing, one of the most comprehensive programs available, and used by over 120 credit unions across the U.S. and Canada to engage and educate members of all ages.
Hit reply to explore how we can work together to empower all generations with the financial knowledge they need to succeed.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
