persuasive essay about financial literacy

Essay on Financial Literacy for Students and Children

Importance of financial literacy, an introduction to financial literacy.

We go to schools, colleges, universities to complete our educated and start earning our livelihood. We take up jobs, practise professions or start our own businesses so that we can earn money to make our living. But which of these institutions make us capable of managing our own hard-earned money? Probably a very few of them. 

Our ability to effectively manage our money by drawing systematic budgets, paying off our debts, making buying and selling decisions and ultimately becoming financially self-sustainable is known as financial literacy. 

Financial literacy is knowing the basic financial management principles and applying them in our day-to-day life. 

Financial Literacy – What does it Involve? 

From simple practices like keeping a track of our expenses and understanding the need to spend money if we like a product to striking a balance between the value of time saved and money lost, paying our taxes and filing of tax returns, finalizing the property deals, etc – everything becomes a part of financial literacy. 

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As human beings, we are not expected to know the nitty-gritty of financial management. But managing our own money in a way that it does not affect us and our family in a negative way is important. We certainly do not want to end up having a day with no money at hand and hunger in our stomach. 

Why is Financial Literacy so Important?

Financial literacy can enable an individual to build up a budgetary guide to distinguish what he buys, what he spends, and what he owes. This subject additionally influences entrepreneurs, who incredibly add to financial development and strength of our economy. 

Financial literacy helps people in becoming independent and self-sufficient. It empowers you with basic knowledge of investment options, financial markets, capital budgeting, etc.

Understanding your money mitigates the danger of facing a fraud-like situation. A few strategies are anything but difficult to accept, particularly when they’re originating from somebody who is by all accounts learned and planned. Basic knowledge of financial literacy will help people with foreseeing the risks and argue/justify with anyone learned and well-informed.

What should you read on / get informed about in Financial Literacy?

• Budgeting and techniques of budgeting
• Direct and indirect taxation system
• Direct tax slabs
• Income and expense tracking 
• Loans and debt – EMI management 
• Interest rate systems: fixed versus floating
• Business and organisational transaction studies
• Elementary Book-keeping and Accountancy
• Cash in-flow and out-flow Statements
• Investment & personal finance management
• Asset management:
• Business negotiation skills and techniques
• Make or buy decision-making
• Financial markets 
• Capital structure – owner’s funds and borrowed funds
• Fundamentals of Risk Management
• Microeconomics and Macroeconomics fundamentals

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Financial Literacy: The Importance in the Modern World Essay

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In previous years, the issue of investing has become popular among beginning investors who follow the advice of bloggers and put their money in unsafe securities or individuals who hope for the burgeoning future of NFTs and cryptocurrency. However, instead of blindly following the advice of impostor financial advisors or buying securities without having knowledge about them, the public should focus on overall financial literacy. From a very young age, every person should learn how to use their money wisely and how it can help not only save but multiply the savings and have enough for a carefree retirement.

The first reason why acquiring the skills of financial literacy is essential is its protection against inflation. At the given moment, the rate of inflation is 7.7%, which means that if money is simply in the deposit account, at the end of the year, its value will decrease by this number (U.S. Inflation Calculator). This is why if people desire to make a big purchase after having enough money for it, eventually, they will be trapped in a vicious circle of constant saving since the prices will be rising together with inflation.

Another point that representatives of younger generations must understand is that financial literacy enables skills of wise saving for retirement. According to The New York Times, schools do not have obligatory courses on 401(k)s and Individual Retirement Accounts, despite the fact that the majority of employees are now responsible for their own retirement plans (Lieber and John). As a result, many children, adolescents, and adults are unaware of the fact that if they start investing $5,000 annually at the age of twenty-two, by the age of 67, they will accumulate approximately $1 million dollars (Lieber and John). However, if they start at thirty-two and invest the same amount of money, they will only manage to generate $500,000 (Lieber and John). Thus, this is the compound interest effect that many people with a lack of financial literacy fail to understand.

Moreover, it is vital to see the benefits of saving in order to have a safety cushion. According to Forbes, two out of three Americans are spending their savings because they are concerned about inflation (Campisi). As a result, these individuals who refuse to save will not have an emergency fund, and if there is a crisis situation, they will have to seek loans. In comparison, those who have basic financial literacy skills know that panicking is the worst enemy, and they are prepared for such scenarios, which is why financial literacy is crucial.

Still, it is important to review other valid opinions regarding investing and saving. While it can be a helpful skill, sometimes financial literacy, along with consistent investing, can be disrupted by certain risks. For instance, the financial crisis of 2008 led to a loss of $2 trillion dollars (Merle). However, it is noteworthy that the results of such outcomes were external factors rather than personal actions.

Hence, it is necessary to learn the fundamentals of financial literacy from a young age in order to have a carefree retirement, emergency funds, and protection against inflation. I believe that it is unfortunate that children do not acquire this knowledge at school and, therefore, it should be either personal or parental responsibility to either learn or teach such skills. With such an approach, both children and adults will be more careful with money and be prepared for any hardship or crisis, being able to grow into financially independent people.

Works Cited

Campisi, Natalie. 2 Out Of 3 Americans Say They’re Blowing Through Savings to Cope With Inflation—Do This Instead . Forbes, 2022. Web.

Lieber, Ron and Todd S. John. How to Win at Retirement Savings . The New York Times, n.d. Web.

Merle, Renae. A Guide to the Financial Crisis — 10 Years Later . The Washington Post. Web.

U.S. Inflation Calculator. Current US Inflation Rates: 2000-2022 . U.S. Inflation Calculator, n.d. Web.

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Why Do Students Need Financial Literacy?

7 Min Read | Jun 3, 2024

Have you ever learned something new about money (maybe the hard way) and thought, I wish I’d learned this in high school ? Sure! We all have. That’s why we’re on a mission to make sure every student in America learns financial literacy before they graduate high school—so today’s graduates have the personal finance skills they need to avoid the money mistakes we made.

What Is Financial Literacy?

Financial literacy  is just a fancy term for money knowledge.

Financial literacy classes teach students the basics of money management: budgeting, saving, avoiding debt, investing, giving and more. That knowledge lays a foundation for students to build strong money habits early on and avoid many of the mistakes that lead to lifelong money struggles.

Why Financial Literacy Courses Matter

As a country, we’ve seen what happens when students don’t have access to financial literacy. Millions of Americans struggle every day with their money. According to The State of Personal Finance in America report from Ramsey Solutions, we’re seeing stats like this:

• 54% of Americans are afraid of not having enough money.
• 34% of Americans said they’re either struggling or in crisis with their finances.
• 51% of Americans regret taking out student loans to pay for their education.

Beyond that, many Americans are finding they can’t buy homes, invest for retirement, or save for their kids’ college funds because of their own student loan debt, massive car payments, and lack of financial planning. To put it simply, they’re short on hope.

So it’s no surprise that leaders in business, education and government want to help spread the benefits of financial literacy. In 2004, the U.S. Senate passed a resolution officially recognizing April as Financial Literacy Month to “raise public awareness about the importance of financial education in the United States and the serious consequences that may be associated with a lack of understanding about personal finances.” ( 1 )

Bottom line: A lot of the money problems Americans are facing could’ve been avoided if financial literacy were taught in school. That’s why we believe in financial literacy for students.

How Financial Literacy Courses Help Students Succeed

So, what are the advantages of learning money principles as a student rather than as an adult? Well, students who take a financial literacy course early have the most time to apply what they’ve learned. And many financial literacy students apply those skills right away—while they’re still in high school.

For example,  according to a Ramsey Solutions survey  of 76,000 students, nearly two out of three high school students who had taken a personal finance course reported that they were already earning an average of $3,000 a year.

A high majority of the same group said they were in the habit of creating monthly budgets for their money. And 20% already owned a car they paid for themselves!

In fact, we found that most students who had taken a course in personal finance understood key financial topics such as:

• The difference between credit cards and debit cards (86%)
• How to pay income taxes (87%)
• How home, auto and life insurance work (90%)
• How student loans work (94%)
• What a 401(k) is and how it works (79%)

Personal finance is a critical skill, right alongside other basics like reading and math.

“Most underrated course. Should be a core class.”— Foundations teacher at Riverwalk Academy in South Carolina

What Is Taught in a Financial Literacy Curriculum?

We want the next generation to handle money wisely and beat the debt statistics! But practically speaking, how do we make that happen?

Are you a teacher? Help your students win with money today!

Thankfully, personal finance is 80% behavior and only 20% head knowledge. So while it’s important for a financial literacy course to teach money lessons, it’s more important to give students an  actionable plan  to manage their personal finances. Foundations of Personal Finance does just that: It offers a simple plan designed to help students confidently handle their finances. That plan is called The Five Foundations . Here’s how it works:

The First Foundation: Save a $500 emergency fund.

The first thing students should do is set aside money for emergencies. Financial emergencies like a lost cell phone or a flat tire could put students into debt if they don’t have any money set aside. But big problems become minor inconveniences when they have an emergency fund in place.

The Second Foundation: Get out and stay out of debt.

Debt is dumb! It’s a huge financial burden that way too many people carry. Cash-back rewards, airline points, minimum monthly payments and zero down—they’re empty promises. Our financial literacy class teaches students the ways debt traps them and how to break free ASAP.

The Third Foundation: Pay cash for your car.

New cars are only worth 40% of their purchase price after just five years. 2  Making monthly payments— plus interest —on something that’s losing value isn’t a good investment. A student’s best bet is to buy a good used car and pay cash . Yup, it’s possible! It takes planning ahead and saving up over time, but it’s  way  better than throwing an average of $738 a month at the “new” car they bought a year ago. 3  It probably doesn’t smell so new anymore!

The Fourth Foundation: Pay cash for college.

The student loan crisis in America is out of control. Our nation’s outstanding student loan debt is at $1.56 trillion. 4  Trillion! Today’s grads are delaying marriage and not saving for retirement. Plus, they can’t even move out of their parents’ homes because of the chains of their past—debt. 5  Students who pay for college with cash (and without a loan), on the other hand, step freely into the next chapter of life.

Need some tips on how to save cash for college? Learn the 10 best ways .

The Fifth Foundation: Build wealth and give.

Now for the super fun part! Students who live debt-free and are disciplined about saving money can really live and give like no one else. This takes time, patience and a little bit of compound growth. But imagine the life-change that happens when money is no longer a worry. Instead of being consumed by financial stress and fear, they can enjoy their money and spend their time thinking of ways to give to others.

“Just the overall concept of giving thought to your finances is more than most teenagers do today. To give them a framework that is virtually foolproof is now presenting them with the choice to simply move forward and be successful. I, at 72, join the crowd that say, ‘I wish I knew this when I was a teenager’!” — Foundations teacher at Treasure Coast Boys Academy in Florida

The Benefits of Financially Literate Students

When a student is financially literate, they don’t just make smart decisions with their money. They build good habits that trickle down to their families, their communities and eventually the nation. And it happens one student at a time.

Think about the jump start students could get on life if they were already budgeting, saving regularly and spending wisely—before they graduate! They could have thousands of dollars in the bank, a paid-for car, and the beginnings of a retirement fund.

And that’s not just a dream! Every year, thousands of students learn financial literacy skills through our  Foundations in Personal Finance   curriculum. They discover the tools they need to build a lifetime of success with money. Foundations  simplifies big topics like insurance, taxes, real estate and the global economy so students can feel confident stepping into the next chapter of their lives.

Life-Changing Personal Finance Curriculum

Teach your high school students the money skills they’ll use now and for the rest of their lives with Foundations in Personal Finance. And this month, Foundations will be available in Spanish for the first time ever!

Did you find this article helpful? Share it!

About the author

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.

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Why financial literacy should be taught in every school

Professor and Co-Director of Behavioural Economics in Action at Rotman (BEAR), University of Toronto

Disclosure statement

Dilip Soman serves on the research sub-committee of the Financial Consumer Agency of Canada. He has received research funding from the Social Sciences and Humanities Research Council of Canada (SSHRC).

University of Toronto provides funding as a founding partner of The Conversation CA.

University of Toronto provides funding as a member of The Conversation CA-FR.

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What would you do if you spotted a wild animal in your proximity?

If you know that inflation forecasts were one per cent lower than actuals and commodity bundles would cost two per cent more than expected, how much more should you save every year so that your retirement quality of life is not compromised?

If you had quick answers to the first question but were not sure about the second, you are not alone! Several years ago, when our ancestors lived in rudimentary dwellings and had a barter economy, their decision-making primarily focused on questions like the first.

As our society has evolved and our economy has become more complex, we have to deal increasingly with questions about debt repayments, retirement savings, budgeting, mortgages and lines of credit.

And yet, the human brain has evolved over hundreds of years with the goal of survival. The more civilized and developed we have become, the more we are asking our brains and its associated apparatus to do what it was simply not designed to do.

Finance is non-intuitive for humans

Financial capability is one domain in which the inadequacies of humans are particularly stark. Changes in the financial landscape over the past 20 years have taxed our cognitive capabilities to new levels.

In the United States and elsewhere, the move to defined contribution pension plans rather than defined benefits has put citizens in the driver’s seat for making contribution and investment choices.

Rising costs of education also require families to plan better. An increase in the number of options and complexity of financial products ranging from mortgages, loans, investment options and credit cards require citizens to be even more knowledgeable about their features.

And easy access to credit means that citizens have to make decisions about allocating consumption over time — a relatively new skill that wasn’t needed in the pre-credit era.

Finally, finance is non-intuitive to the human brain. Research has shown that people consistently fail to grasp the impact of compound interest or ongoing expenses on their wellbeing.

The financial inclusion challenge

So, how well do we do on financial capability? A 2011 study entitled Americans’ Financial Capability painted “a troubling picture of the state of financial capability in the United States…. The majority of Americans do not plan for predictable events such as retirement or children’s college education. Most importantly, people do not make provisions for unexpected events and emergencies, leaving themselves and the economy exposed to shocks.”

In Canada, the news was equally dim. The 2010 recommendations of the Task Force on Financial Literacy , set up by the federal government, found that financial capability in Canada was no better than other countries. A total 31 per cent of Canadians were struggling to meet their bills and payments.

The task force also found that the diversity in our country makes financial inclusion challenging. “Aboriginal Canadians,” “young adults,” “very recent immigrants” and “low-income and low-net-worth households” were the categories of people found to be struggling just to make ends meet.

In writing about the importance of financial literacy, the task force wrote: “It is more than a nice-to-have skill. It is a necessity in today’s world — and, moving forward, should be treated as such by policy-makers, educators, employers and other stakeholders across the country.”

Fixing the handicap

Over the past seven years, efforts in Canada and elsewhere have focused on improving financial literacy and helping citizens make better financial decisions.

The Financial Consumer Agency of Canada (FCAC) has led the charge in creating a culture of a financially literate Canada. The news is encouraging — there have been demonstrated improvements in financial capability and Canadians seem less stressed about their finances.

Yet, there is much work to be done. As the adage goes with any behavioural change challenge: It is relatively easy to make a change, but sustaining and growing the momentum are more difficult.

In particular, efforts have currently focused on teaching Canadians critical skills at the right time. This includes efforts such as “just-in-time” financial literacy and guidelines or “rules-of-thumb” to make better choices .

In the language of the behavioural sciences, these efforts are referred to as rebiasing efforts . Rebiasing simply refers to fighting one form of cognitive handicap with an intervention that may not necessarily fix the handicap. Giving people a rule of thumb to make better mortgage decisions doesn’t help them understand the theory of mortgages any better, it just helps them choose.

On the other hand, debiasing refers to interventions that truly fix the handicap . When confronted with a mortgage, for instance, a debiased citizen might truly think in terms of interest rates, net present values and budgeting for payments rather than relying on a rule of thumb. It requires a fundamental mindset shift! It requires ongoing training and practice!

Financial literacy in schools

What better place to change mindsets of future citizens than our schools and colleges?

The Organisation for Economic Co-operation and Development (OECD) runs a program called the Programme for International Student Assessment (PISA). Since 2012, this program added financial literacy to its assessment of math, science and reading in 15 countries (including seven Canadian provinces).

The measurement of these skills are essential — after all, it is difficult to impact something that can’t be measured. Critical to success in these initiatives is a curriculum that allows kids to make financial decisions and get feedback in a safe space.

This can be done through a combination of traditional classroom activities, technology enabled games and some limited real world practice.

Most Canadian provinces and territories embed financial literacy in their school curricula to some degree. The financial education children receive, however, varies significantly depending on where they live .

British Columbia stands out: A new curriculum includes mandatory financial literacy instruction within math courses at every grade level, beginning in kindergarten.

The need for “street smarts”

Results from PISA show that teaching financial capabilities in schools does have a significant and positive impact on financial decision-making by 15 year olds .

The boost from school programs is especially significant in cases where there are high levels of parental involvement and when capabilities are developed through practice (either in simulated or real bank accounts) rather than through mere lectures.

The study — which included data from seven Canadian provinces, and in which Canada ranked third, after China and Belgium — also shows that socio-economic status matters. It shows that while numeracy (being able to compute interest rates etc.) is important, it is definitely not sufficient.

Being “street smart” about things such as recognizing that some deals really are too good to be true, understanding the role of income tax or being vigilant for fraudulent e-mails also play an important role in financial capability.

A financially-trained citizen base

Developing a financially literate and fair marketplace has three large building blocks:

Financial literacy for adults who need it now.

Behaviourally-informed regulation that ensures a fair marketplace.

A citizen base that acknowledges the centrality of financial capability to wellbeing and is trained to think financially.

We have made inroads into the first two of these three blocks, and it is now time to tackle the third!

• Financial literacy
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Financial Literacy: What It Is, and Why It Is So Important To Teach Teens

Education is the key to a successful financial future

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What Is Financial Literacy?

Understanding financial literacy.

• Why It Matters

The Bottom Line

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Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

When you are financially literate, you have the essential foundation for a smart relationship with money. This can help start a lifelong journey of learning about the financial aspects of your life. The earlier you start to become financially literate, the better off you'll be because education is the key to a successful financial future.

Key Takeaways

• The term “financial literacy” refers to understanding a variety of important financial skills and concepts.
• Financially literate people are generally less vulnerable to financial fraud.
• A strong foundation of financial literacy can help support various life goals, such as saving for education or retirement, using debt responsibly, and running a business.
• Key aspects of financial literacy include knowing how to create a budget, plan for retirement, manage debt, and track personal spending.
• Financial literacy can be obtained through reading books, listening to podcasts, subscribing to financial content, or talking to a financial professional.

Investopedia / Paige McLaughlin

Since about 2000, financial products and services have become increasingly widespread throughout society. Whereas earlier generations of U.S. residents may have purchased goods primarily in cash, various credit products are popular today, such as credit and debit cards and electronic transfers. A 2021 survey by the Federal Reserve Bank of San Francisco revealed that 28% of all payments were made via credit card, with only 20% being made in cash.

Given the importance of finance in modern society, a lack of financial literacy can be very damaging to an individual’s long-term financial success.

Pitfalls of Illiteracy

Being financially illiterate can lead to many pitfalls, such as being more likely to accumulate unsustainable debt burdens, either through poor spending decisions or a lack of long-term preparation. This, in turn, can lead to poor credit , bankruptcy, housing foreclosure , and other negative consequences.

Thankfully, there are now more resources than ever for those wishing to educate themselves about financial topics. One such resource is the U.S. government-sponsored Financial Literacy and Education Commission, which offers a range of free learning opportunities.

Financial literacy can help protect individuals from becoming victims of financial fraud, a type of crime that is becoming more commonplace.

Scope of Financial Literacy

Although many skills might fall under the umbrella of financial literacy, popular examples include household budgeting, learning how to manage and pay off debts , and evaluating the tradeoffs between different credit and investment products. These skills often require at least a working knowledge of key financial concepts, such as compound interest and the time value of money.

Financial literacy can cover short- and long-term financial strategies. The strategy you use will depend on several factors, such as your age, investment time horizon, and  risk tolerance . Financial literacy also encompasses knowing how investment decisions made today will impact your tax liabilities in the future.

Financial products such as mortgages, student loans, health insurance, and self-directed investment accounts have grown in importance. It is imperative for individuals to understand how to use them responsibly. It's also important to know which investment vehicles are best to use when saving, whether for a financial goal like buying a home or for retirement.

Other developments in finance such as e-wallets, digital money, and P2P lending can be convenient and cost-effective but require that consumers be educated adequately to use them to their advantage.

Why Financial Literacy Matters

It supports financial well-being.

Day-to-day living expenses, living within your means, short-term borrowing, long-term budget forecasting. To manage these and other essential financial realities properly as you go through life, you must be financially literate.

It is important to plan and save enough to provide adequate income in retirement while avoiding high levels of debt that might result in bankruptcy, defaults, and foreclosures.

In its "Economic Well-Being of U.S. Households in 2022" report, the U.S. Federal Reserve System Board of Governors found that many Americans are not prepared for retirement. Twenty-eight percent indicated that they have no retirement savings, while about 31% of those not yet retired felt that their retirement savings were on track. Among those who have self-directed retirement savings, about 63% admitted to feeling low levels of confidence in making retirement decisions.

Millennials' Challenge

Lack of financial literacy has left millennials—the largest share of the American workforce—unprepared for a severe financial crisis, according to research by the TIAA Institute. Even among those who reported having a high  knowledge of personal finance , only 19% answered questions about fundamental financial concepts correctly.

Forty-three percent reported using expensive alternative financial services, such as  payday loans  and pawnshops. More than half lacked an emergency fund to cover three months’ of expenses, and 37% were financially fragile (defined as unable or unlikely to be able to come up with $2,000 within a month in the event of an emergency).

Millennials also carry large amounts of student loan and mortgage debt. In fact, 44% of them said they have too much debt.

Though these may seem like individual problems, they have a wider effect on the entire population than previously believed. The lack of knowledge of mortgage products prior to the 2008 financial crisis created widespread vulnerability to  predatory lending . The financial impact of that crisis affected the entire economy.

Financial literacy is an issue with broad implications for economic health.

If you are a younger individual, retirement may seem years away. Yet it is one of the best goals to begin saving for. That's because the earlier you start, the longer your invested savings will have to compound and the more money you'll end up with. An employer-sponsored retirement account, such as a 401(k) , can help.

Benefits of Financial Literacy

Broadly speaking, the benefit of financial literacy is that it empowers individuals to make smarter decisions about their finances. In addition:

• Financial literacy can prevent devastating financial mistakes : Floating rate loans may have different interest rates each month, while traditional individual retirement account (IRA) contributions can’t be withdrawn until retirement. For someone unaware of these and other financial facts, seemingly innocent financial decisions may have long-term implications that cost them money or impact life plans. Financial literacy helps individuals avoid making mistakes with their personal finances.
• Financial literacy prepares people for financial emergencies : Topics such as saving or emergency preparedness get individuals ready for uncertain times. Though losing a job or having a major unexpected expense can be financially impactful, an individual can cushion the blow by saving regularly.
• Financial literacy can help individuals reach their goals : By better understanding how to budget and save money, individuals can create plans that define expectations, hold them accountable to their finances, and set a course for achieving important financial goals. Though someone may not be able to afford a dream today, they can create a plan that can help make it happen.
• Financial literacy gives rise to confidence : Imagine having to make a life-changing financial decision without all the necessary information. With knowledge about finances, individuals can approach major life choices with greater confidence. They'll be more likely to achieve the outcome they desire and less likely to be surprised or negatively impacted by unforeseen outcomes.

Strategies to Improve Financial Literacy Skills

Developing financial literacy involves learning and practicing skills related to budgeting, managing, and paying off debts , and more. It means understanding and using credit and investment products wisely. The good news is that, no matter where you are in life and financially, it’s never too late to start practicing good financial habits.

Here are several practical strategies to consider.

Create a Budget

Track how much money you receive each month and how much you spend. You can use an Excel spreadsheet, paper, or a budgeting app . Your budget should include income (paychecks, investments, alimony), fixed expenses (rent/mortgage payments, utilities, loan payments), discretionary spending (nonessentials such as eating out, shopping, and travel), and savings.

Pay Yourself First

To build savings, this reverse budgeting strategy involves choosing a savings goal, such as paying for higher education, deciding how much you want to contribute toward it each month, and setting that amount aside before you divvy up the rest of your expenses.

Pay Bills Promptly

Stay on top of monthly bills, making sure that your payments are always sent to arrive on time. Consider taking advantage of automatic debits from a checking account or bill-pay apps, and sign up for payment reminders (by email, phone, or text).

Get Your Credit Report

Once a year, consumers can request a free credit report from each of the three major credit bureaus —Equifax, Experian, and TransUnion—through the federally created website AnnualCreditReport.com.

Review these reports and dispute any errors by informing the credit bureau of inaccuracies. Because you can get three of them, consider spacing out your requests throughout the year to monitor your credit regularly.

In a 2022 survey by the Federal Reserve, 27% of adults in the U.S. reported not "doing okay" financially. The number who reported not living comfortably increased from 2021.

Check Your Credit Score

A good credit score enables you to obtain the best interest rates on loans and credit cards, among other benefits. Monitor your score via a free credit monitoring service. Or, if you can afford to and want to add an extra layer of protection for your personal information, use a credit monitoring service . In addition, be aware of what can raise or lower your scores, such as credit inquiries and credit utilization ratios.

Manage Debt

Use your budget to stay on top of debt by reducing spending and increasing repayment. Develop a debt reduction plan , such as paying down the loan with the highest interest rate first. If your debt is excessive, contact lenders to renegotiate repayment, consolidate loans , or find a debt counseling program.

Invest in Your Future

If your employer offers a 401(k) retirement savings account, be sure to sign up and contribute the maximum to receive the employer match . Consider opening an IRA and creating a diversified investment portfolio of stocks, fixed income, and commodities. If necessary, seek financial advice from professional advisors to help you determine how much money you will need to retire comfortably and develop strategies to reach your goal.

Example of Financial Literacy

Emma is a high school teacher who tries to inform her students about financial literacy through her curriculum. She educates them on the basics of a variety of financial topics, such as personal budgeting, debt management, saving for college and retirement, insurance, investing, and even tax planning. Emma’s students can and will use these concepts for things like renting an apartment, getting a first job, or even just paying for fun activities such as going to the movies.

Understanding concepts such as credit cards, bank accounts, interest rates, opportunity costs, debt management , compound interest, and budgets, for example, could help her students start saving and manage the student loans that they might rely on to fund their college education. It could keep them from amassing dangerous levels of debt and threatening their credit scores.

Similarly, she expects that certain topics, such as income taxes and retirement planning, will eventually prove useful to all students, no matter what they end up doing after high school.

Why Is Financial Literacy Important?

Financial literacy gives an individual the tools and resources they need to be financially secure throughout their life. The lack of financial literacy can lead to many pitfalls, such as overspending and accumulating unsustainable debt burdens. This, in turn, can lead to poor credit, bankruptcy, housing foreclosure, or other negative consequences.

How Do I Become Financially Literate?

Becoming financially literate involves learning and practicing a variety of skills related to budgeting, managing and paying off debts, and understanding credit and investment products. Basic steps to improve your personal finances include creating a budget, keeping track of expenses, making timely payments, being prudent about saving money, periodically checking your credit report, and investing for your future.

What Are Some Popular Personal Budget Rules?

Two commonly used personal budgeting methods are the 50/20/30 and 70/20/10 rules, and their simplicity is what makes them popular. The first entails dividing your after-tax, take-home pay into three areas: needs (50%), savings (20%), and wants (30%). The 70/20/10 rule also follows a similar blueprint, recommending that your after-tax, take-home income be divided into segments that cater to expenses (70%), savings or reducing debt (20%), and investments and charitable donations (10%).

What Are the Principles of Financial Literacy?

There are five broad principles of financial literacy. Though other models may list different key components, the overarching goal of financial literacy is to teach individuals about earning, spending, saving, borrowing, and protecting their money.

Financial literacy is the knowledge of various aspects of personal finance and the ability to make smart decisions about money.

It includes preparing a budget, knowing how much to save, recognizing favorable loan terms, understanding what impacts credit, and distinguishing different investment options that can be used to save for retirement.

The financial skills that come from financial literacy can help individuals handle their personal finances responsibly which, in turn, can help them protect the well-being of their financial futures.

Federal Reserve Bank of San Francisco. “ 2022 Findings from the Diary of Consumer Payment Choice .” Page 6.

U.S. Department of the Treasury. “ Financial Literacy and Education Commission .”

Board of Governors of the Federal Reserve System. “ Economic Well-Being of U.S. Households in 2022 .” Pages 68, 71.

Bolognesi, Andrea and et al. “ Millennials and Money: Financial Preparedness and Money Management Practices Before COVID-19 .” TIAA Institute Research Dialogue , no. 167, August 2020, pp. 5, 6, 15, 22.

Bolognesi, Andrea and et al. “ Millennials and Money: Financial Preparedness and Money Management Practices Before COVID-19 .” TIAA Institute Research Dialogue , no. 167, August 2020, pp. 13.

Federal Trade Commission. " Free Credit Reports ."

Board of Governors of the Federal Reserve System. “ Economic Well-Being of U.S. Households in 2022 .” Page 5.

MyMoney.gov. " My Money Five ."

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Essay on Financial Literacy

Students are often asked to write an essay on Financial Literacy in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Financial Literacy

What is financial literacy.

Financial literacy means knowing how to manage money. This includes understanding how to save, spend, and invest your cash. It’s like learning a new language but for money. It helps you make smart choices with your pocket money or savings from a part-time job.

Why Save Money?

Saving money is like keeping seeds for planting. You save now and have more later. It’s important to save for things you might want in the future or if something unexpected happens, like a broken bike that needs fixing.

Spending Wisely

Spending wisely means thinking before buying. Ask yourself, “Do I really need this?” or “Can I find it cheaper somewhere else?” This helps you avoid wasting money on things you don’t need or paying too much.

Investing is like planting your saved seeds to grow a tree. You put your money in a place where it can grow over time, like a bank account or stocks. But be careful, investing can be risky, so you should learn about it first.

Understanding money is a big part of life. Learning about financial literacy early helps you make better decisions and can lead to a future with fewer money worries.

Also check:

• Advantages and Disadvantages of Financial Literacy

250 Words Essay on Financial Literacy

Financial literacy means knowing how to manage your money smartly. It’s like learning a new language, but instead of words, you learn about savings, budgeting, and how to make your money grow. Just as you need to know math to solve problems, you need financial literacy to make good choices with money.

Saving Money

Think of saving money as a game where the goal is to keep as many coins as you can in a piggy bank. You do this by spending less on things you don’t need. Saving is important because it’s like having a safety net on a trampoline; it’s there to catch you if you fall or if something unexpected happens.

Making a Budget

A budget is a plan for your money. It’s like a map that shows you how to spend your allowance or earnings from chores. When you make a budget, you decide what you’ll spend on snacks, games, or saving for something big like a new bike. Sticking to your budget means you’re in charge of your money, not the other way around.

Smart Spending

Smart spending means thinking carefully before you buy something. Ask yourself, “Do I really need this?” or “Can I find it cheaper somewhere else?” It’s like choosing the best candy in the store, so you get the most yumminess for your money.

Growing Your Money

Growing your money is about making it increase over time. You can do this by putting your savings in a bank account that pays you interest, which is like a thank you gift from the bank for keeping your money there. Or, you can learn about investing, which can help your money grow even more.

Understanding financial literacy helps you make smart choices now and prepares you for the future. It’s a tool that helps you build the life you want, just like learning to read and write.

500 Words Essay on Financial Literacy

Financial literacy is knowing how to manage money. This means understanding how to earn, save, spend, and invest your money wisely. It’s just like learning how to read or write, but instead of letters and words, you’re learning about numbers and dollars. When you’re financially literate, you can make smart choices with your money that will help you in the future.

Earning and Saving Money

The first part of being good with money is learning how to earn it. This can be from a small job, like helping neighbors or getting an allowance from your parents. Once you have some money, it’s important to save it. Saving money means putting it away for later, like in a piggy bank or a savings account at a bank. This way, you can have money for things you’ll need in the future, like a new bike or college.

Spending Money Wisely

Spending money is something everyone has to do, but spending it wisely is a key part of financial literacy. This means thinking about whether you really need what you’re buying and if you’re getting it at a good price. It’s okay to spend money on fun things, but you should make sure you have enough for the things you need first, like food and clothes.

A budget is a plan for how to spend your money. It helps you keep track of what you earn, what you need to spend on things like food and rent, and how much you can save or use for fun stuff. Making a budget can help you make sure you don’t run out of money and can save up for big things you want in the future.

Investing is a way to make your money grow. Instead of just saving it, you can use your money to buy things that might increase in value over time, like stocks or property. It’s a bit more complicated and can be riskier, but if you learn about it, investing can help you build more money for the future.

Why Financial Literacy is Important

Being good with money is important because it helps you feel secure and ready for the future. If you know how to manage your money, you won’t have to worry as much about not having enough for things you need or want. It also means you can help your family and even give back to your community by donating to people who need help.

Financial literacy is a big part of growing up and becoming independent. It’s about being smart with your money, so you can take care of yourself and your loved ones. Learning about earning, saving, spending, budgeting, and investing can seem like a lot, but step by step, it can become as easy as reading your favorite book. Start learning about money now, and you’ll be ready for all the adventures life has to offer!

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Home — Essay Samples — Economics — Money — Importance of Money Management and Financial Literacy for Students

Importance of Money Management and Financial Literacy for Students

• Categories: Literacy Money Personal Finance

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Words: 1537 |

Published: Aug 14, 2023

Words: 1537 | Pages: 3 | 8 min read

Table of contents

Importance of financial literacy and financial education, how other countries apply financial literacy, what can be done within our current school systems, my own financial literacy level.

• Anderloni, L. and Vandone, D. (2010), “Risk of overindebtedness and behavioral factors”, Working Paper No 25, Social Science Research Network, Santa Monica, CA.
• ASIC (2011), “National financial literacy strategy: Australian securities & investment commission Report No. 229”, available at: www.financialliteracy.gov.au/media/218312/national-financialliteracy-strategy.pdf (accessed 23 October 2016).
• Atkinson, A. and Messy, F. (2012), “Measuring financial literacy: results of the OECD/International Network on Financial Education (INFE) Pilot study”, Working Paper No. 15, OECD Working Papers on Finance, Insurance and Private Pensions, OECD Publishing, Paris.
• Filipiak, U. and Walle, Y.M. (2015), “The financial literacy gender gap: a question of nature or nurture?”, Discussion Papers No. 176, Courant Research Centre: Poverty, Equity and Growth.
• Huston, S.J. (2010), “Measuring financial literacy”, The Journal of Consumer Affairs, Vol. 44 No. 2, pp. 296-316.
• National Strategy for Financial Literacy (2012), “Commission for financial literacy and retirement income”, available at: www.cflri.org.nz/sites/default/files/docs/FL-NS-National%20Strategy2012-Aug.pdf (accessed 24 October 2016).
• Organisation for Economic Co-operation and Development (OECD) (2012), OECD/INFE High-Level Principles on National Strategies for Financial Education, OECD Publishing, Paris.
• Vitt, L.A. (2004), “Consumers financial decisions and the psychology of values”, Journal of Financial Service Professionals, Vol. 58 No. 6, pp. 68-78.

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Financial Literacy Should Start in High School by Katie

Katie's entry into Varsity Tutor's November 2021 scholarship contest

Financial Literacy Should Start in High School by Katie - November 2021 Scholarship Essay

One night at dinner my parents were talking about a purchase on their credit card account which they did not make. They discussed notifying the bank, checking for other fraudulent charges, freezing their credit and requesting a copy of their credit report. I thought to myself “what is a credit card report“ “how do they know how to do all this”?

“Financial literacy is the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be, because education is the key to success when it comes to money.” (Investopedia.com) Financial literacy involves a number of different areas of understanding. Learning about money and how it works is an important aspect, as well as understanding credit, loans, and investments. Personal finance is not a required subject in high school. Schools need to provide high school students with not only an education in Math but more specifically the facts and tools necessary to make smart choices and manage their finances throughout life.

Managing money effectively is not a skill that comes naturally to everyone. Unless a person is exposed to the practice of money management, he/she is less likely to understand how it works and its long-term benefits. Without a financial education, it is easy to develop poor spending and financial habits resulting in significant consequences such as a poor credit rating, denial of credit, rejection for a checking account and bankruptcy. Early financial literacy is the best way to prevent such consequences. Personal financial literacy is much more than managing and investing money. It also includes making all the pieces of your financial life fit together.

Students would benefit from learning the fundamentals of analyzing a situation, identifying the choices and making an informed decision. These are processes that can be learned and practiced. Important areas to learn are how to set personal and financial goals, making money, understanding income taxes and how to complete a tax form, creating and following a budget, living on your own, buying a home, banking services, credit, credit cards, cars and loans, consumer awareness, saving and investing. There are software programs available to teachers to take book knowledge to a real life scenario with personal finance games. Students build a budget to manage income, expenses and savings, react to real-life scenarios presented and manage their credit.

Some people argue that teaching children financial basics is the parents’ job; however, this doesn’t always happen or some families are passing along poor financial skills from generation to generation. Education takes place in the home and in schools; therefore, schools should bear some responsibility for teaching financial literacy to empower students with skills and knowledge to thrive.

Should Schools Teach Financial Literacy?

Making cents of money, getting cash for college, decline of financial education.

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Money Cents For Kids: <LINK URL="http://www.mc4k.com"> www.mc4k.com </LINK>

Council for Economic Education: <LINK URL="http://www.councilforeconed.org"> www.councilforeconed.org </LINK>

High Debt, Low Information survey: <LINK URL="http://www.younginvincibles.org"> www.younginvincibles.org </LINK>

"Australian Educators Focus on Financial Literacy," an Education Update online feature: <LINK URL="http://www.ascd.org/eu-aug12-australia"> www.ascd.org/eu-aug12-australia </LINK>

Also, get a list of free financial literacy resources at www.ascd.org/eu-aug12-financial .

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Should schools teach financial literacy classes.

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CEO & Founder of National Business Capital , the leading fintech marketplace offering streamlined small business loans.

It’s no secret that many Americans are struggling financially. Over 60% of Americans live paycheck to paycheck and can’t set aside any money for short-term or long-term financial goals.

It’s not just a problem affecting low-income families either— 41% of Americans earning between $150,000 to $200,000 per year live paycheck to paycheck. Not to mention, credit card and student loan debt are at an all-time high.

A growing number of states require teaching financial literacy in public schools for this very reason. However, it’s a surprisingly bipartisan issue—seven states have financial literacy class requirements , and 34 have pending legislation.

But, what is financial literacy, and what are the benefits of implementing these classes in public schools?

What Is Financial Literacy?

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Financially literate individuals have an understanding of basic financial concepts and can apply those skills in their own life. Here are some topics that fall under the scope of financial literacy:

• How to open a bank account.

• Paying bills on time.

• Creating and managing a household budget.

• How credit works and how to improve your credit score.

• Using debt responsibly.

• Saving money for retirement.

• Comparing financial products like credit cards or investments.

Financial literacy affects every area of your life. The sooner kids understand these concepts, the better, especially if they come from backgrounds with families who don’t prioritize financial literacy. Over time, financial illiteracy can lead to problems like poor spending habits and unmanageable debt. It’s harder to unlearn negative habits than it is to learn new ones, so these classes will, in theory, set the younger generation on a path to resilient financial health.

Four Benefits Of Financial Literacy Classes

It’s essential to start learning about money at a young age. According to the Financial Industry Regulatory Authority (FINRA), 53% of individuals with a higher financial literacy spent less than their income, and 65% had set aside a three-month emergency fund.

In comparison, 35% of individuals with lower financial literacy spent less than they earned, and 42% had a three-month emergency fund set aside. When you learn how money works at a young age, you’ll have the necessary skills to make positive financial decisions as an adult. Let’s look at four benefits of teaching financial literacy classes in schools.

Better Financial Decisions

The research shows that financial literacy classes help students make better financial decisions later in life. The FINRA Foundation found that students with higher financial literacy were less likely to have late fees, make only minimum payments on their credit cards and take out payday loans.

States that have implemented financial literacy requirements have also seen positive outcomes. Three years after implementing this change, Georgia, Idaho and Texas saw credit scores rise and delinquency rates fall.

Understand The Consequences Of Student Loan Debt

Another benefit of financial literacy courses is that students enter college with a better understanding of how their loans work. Most college students borrow money to pay for their education, but few understand exactly what they’re agreeing to or how much debt is appropriate.

Financial literacy classes can teach kids how to fill out the Free Application for Student Aid (FAFSA), utilize federal grants and apply for scholarships. They’ll also explain the difference between federal and private loans, the cost-benefit analysis of each option and why federal loans are a better option for most people.

Knowing The Importance Of Saving

The pandemic revealed just how ill-prepared many people are for a financial emergency. A Federal Reserve study found that many Americans would have difficulty coming up with $400 to cover an unplanned expense.

Financial literacy classes teach the importance of saving, even if it’s just a small amount. Students will also learn about compound interest and why it’s beneficial to start investing at a young age. Interestingly, even teachers who lead financial literacy courses tend to experience an increase in their own savings.

Financial Literacy Has A Positive Ripple Effect

One of the things many people don’t think about is that your finances have a ripple effect on every other area of your life—both for better and worse. Studies have shown a link between financial instability and mental health problems, like anxiety and depression.

Financial worries are the number one stressor in many people’s lives. Individuals with high financial stress often report compromised immune systems, digestive issues, high blood pressure and other health problems.

When you’re financially literate, you’re better able to manage the ups and downs of life as they happen—your physical health, mental health and relationships will be better off as a result.

The Bottom Line

Roughly 30% of children enrolled in public schools have access to financial literacy classes. It’s a step in the right direction, but this number still isn’t high enough.

When kids take financial literacy classes, they learn the basics of budgeting, saving and debt management. This education provides a strong foundation they can build on as adults and helps them avoid lifelong money problems, setting themselves on a path toward success early on.

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Why we must start teaching children about financial literacy in schools

Schools need to teach real-world, better financial literacy to students, to prepare them for better spending and borrowing in a worsening cost-of-living crisis

Over the past few weeks, there’s been widespread talk of Rishi Sunak’s upcoming plans to make mathematics lessons compulsory until the age of eighteen. Whilst the responses to the idea have been mixed – with some claiming the move will be traumatising for teens and others claiming they would be more financially confident if they had been taught maths until the age of eighteen – the proposed changes raise important talking points about how we learn about financial literacy.

If Sunak’s plans are to be more focused on financial independence and financial freedom, then in my view, the change is a welcome one.

Sunak’s plans are to be more focused on financial independence and financial freedom

In fact, I argue that financial literacy lessons – not maths lessons specifically – should be compulsory in all schools at all levels. Not just one-off sessions. The world of finance is a vast and expansive one, and at some point or another, we either have been or will be exposed to financial terminology or processes that we don’t understand.

Whether that happens when applying for a mortgage, loan, or credit card, or trying to organise our own tax returns , compulsory financial lessons will help the general population to be more savvy and knowledgeable when it comes to their finances.

There is a basic lack of understanding of common financial processes

When debates arise around whether real-world lessons should be taught in schools, many experts argue that the school education system doesn’t need to teach pupils about them because the system is designed to develop transferable skills . Whilst there may be an argument within that (and the need to be able to figure things out independently) as a society we have a duty to give children both academic and practical educational lessons.

Yes, we need to teach pupils about advanced Pythagoras theorem and algebra if they want to study mathematics at university level, but it’s also important for them to know and understand the risks associated with taking out a payday loan, or what 64% APR means when it comes to applying for a credit card.

It’s also important for them to know and understand the risks associated with taking out a payday loan, or what 64% APR means when it comes to applying for a credit card

Overall, there is a general lack of understanding about financial processes within our society, and schools should have a responsibility to teach children something that will affect them in their everyday life.

Without knowledge or education about finances, we’re open to exploitation

When we think about the health, safety, and wellbeing of members of our society, the government takes a level of responsibility to ensure the safeguarding of citizens.

To put this into context, think about the numerous anti-smoking, anti-gambling, and drink-aware campaigns that governments around the world roll out to citizens to ensure they ‘know their limits’ and raise awareness of the dangers of recreational activities. But what about when it comes to spending and borrowing?

There is clearly a lack of knowledge and awareness around the dangers of borrowing too much money, maxing out credit cards, and damaging our credit scores. This is becoming even more apparent with the Buy Now Pay Later trend that many financially vulnerable citizens engage with, namely students and those on lower incomes.

https://twitter.com/AnnMCairns/status/1613868472852774912

If we were all taught the drawbacks and benefits of borrowing at school, then we might think twice about applying for finance or knowing where to go if we need support in dealing with our finances.

Ultimately, if you don’t have someone to educate you on the dangers that come with borrowing credit, then you’re more open and vulnerable to being exploited by them . On the flip side, if you don’t know how to invest, then you might miss out on building personal wealth.

Financial literacy can help prevent a perpetual cycle of poverty

For the most part, young people learn financial literacy and personal finance skills from their parents, both explicitly and subconsciously. If a parent is struggling to deal with finances themselves, there may not be time or even a conversation about how children should approach their finances as they become adults.

This leads to less awareness and knowledge of financial processes and can result in ill-informed decisions, again, perpetuating the cycle of poverty from generation to generation. If schools had a more hands-on approach to teaching children about personal finance, making it a regular lesson in their curriculum (say one hour per week) then there wouldn’t be a dependence on children to ask their parents about financial matters, and they could gain access to reputable, trustworthy, independent financial lessons from industry experts.

As a society, it’s our duty to create independent, confident citizens of the future, and that mission starts with financial literacy.

This piece was written by Roger James Hamilton, founder of Genius Group

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How racial disparities in financial education affect America’s wealth gap

Laura Barrón-López Laura Barrón-López

Kaisha Young Kaisha Young

Mekhi Hill Mekhi Hill

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• Copy URL https://www.pbs.org/newshour/show/how-racial-disparities-in-financial-education-affect-americas-wealth-gap

Knowing how to budget and save money are important skills, but not everyone is taught how to do so. Only 25 states require high schoolers to take a personal finance class, and schools with predominantly Black and brown students are less likely to offer those courses. Laura Barrón-López reports on how younger generations are working to improve their financial literacy and help close the wealth gap.

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A recent poll by the website MarketWatch found that 65 percent of those surveyed said personal finances are their biggest source of stress. Knowing how to budget and save money are skills that can help but not everyone is taught how to manage their money.

Only 25 states require high school students to take a personal finance class in order to graduate and the schools with predominantly black and brown students are less likely to offer those courses.

Laura Barron-Lopez reports on how younger generations are working to improve their financial literacy and help close the wealth gap. It's part of our ongoing coverage of race matters.

Laura Barron-Lopez:

In the U.S., the racial wealth gap is stark. According to the Brookings Institute, the median wealth for a white household is $188,200, nearly eight times more than the average black household, which is just over $24,000. And experts predict that without improved financial literacy, that gap will only grow. We spoke with black Americans about the obstacles they faced on their journey to financial success.

Charles Winfrey:

My name is Charles Winfrey. I'm a freshman business finance major here at Morehouse College.

Capricia Sampson:

My name is Capricia Sampson, and from Paterson, New Jersey. I'm 27 years old, and I started my career as a design consultant in tech.

Alyssa Cabezas:

My name is Alyssa Cabezas. I am originally from Vicksburg, Mississippi. I am 23 years old. And I currently work at JPMorgan doing commercial banking,

I grew up in a two parent household with four siblings, and was introduced to money in a way where my parents really wanted to steal their part as a financial literacy and also just education and hard work. So my dad, at some point, he was like, you need to learn the value of $1. And with that, he would give me an allowance for doing chores around the house. Every two weeks.

My family comes from finance. So I was really had that exposure early on to a lot of money finance business talks.

I'm a first generation college student, I'm also a first generation high school graduate. And when I stepped into swimming, everybody was like, so financially literate girls was talking about how like other parents had trust funds set up for them. And that's how they pay for school. And I'm like, I was working for Senate 25 with a team. So being in the environment, that's what really exposed me to wanting to know more about financial literacy.

The challenges of being able to grow wealth as a black person in America is really the disproportion of wealth. As you know, for every dollar a black person makes, it's not in comparison to what white people make in this country.

One of the things that we need to work on in our community is like, just being more intentional and methodical about how you use your money. But in order for that to happen, we also have to be in a position where we aren't just trying to survive. And like just make it day to day.

What do we see growing up on TV, we see black athletes, and the — in our pop culture was cool, we see black rappers. We don't see black entrepreneurs. That's the psychological shift that has to happen.

Once you like, help our generation understand financial literacy, then they'll be able to do it for that generation. And it'll really like revolutionize the trajectory of what it means to be like a black person with money.

What I'm seeing now is that we're in this financial revolution, where people actually are being excited and taking ownership of understanding how to maximize their income and also what it looks like to grow and to have ownership, which are things that weren't necessarily our story in history.

Joining me now to talk about the importance of financial literacy is Robert Smith, philanthropist and CEO of the private equity firm, VISTA Equity Partners.

Robert Smith, CEO, Vista Equity Partners:

Thank you. It's my pleasure.

What do you make of the current state of financial literacy in the black community?

Robert Smith:

There are a number of challenges, some of them are systemic, and some of them are personal. The systemic ones are access to capital access to enablement. And then on the personal side is financial literacy and understanding how, you know, utilization of the capital constructs here in the U.S. can enable an improvement of their condition in their lives.

And we've just found that those two areas are areas that require some focus and, frankly, some resources and capability to enable the community to actually continue to excel. And to accelerate further to make up the gap in this in this this wealth gap that we've seen for decades.

Why is there such a low level of financial literacy in the black community? And what are the factors contributing to it?

You know, it's knowledge and information, you know, for so long, you know, there was just lack of access to information. You know, I am the first generation to go to the segregated schools and where you are now enabled to participate in here information about everything from, you know, educational systems to investing to, you know, how to actually improve your condition by buying houses, borrowing money, all those sorts of things.

You know, my parent's generation was really the first generation that had access to pension plans in the African American community. And, you know, understanding the importance of being able to work and retire. And in some cases, use that ability to enable your children should not go to school, to borrow money against the house so that they can get educated and move the next generation poor.

Student loan debt, as you know, is a significant barrier to financial success for many Americans in 2019, you paid off student loans for an entire graduating class at Morehouse College, the historically black university, why did you decide to do that?

You know, they had already bet on themselves, which is very important. You know, from my perspective, you know, they're at the point of graduation, it taken out the student loans. And I really started to evaluate, you know, if I were going to do something to help these students, what's the best answer, you can write a scholarship to the school, but I want to actually reward people who had already done the work had already bet on themselves. And so that's why I did it in that fashion.

But 60 percent of the wealth generated an African American communities goes towards servicing student loan debt, and I just thought that was just unconscionable in many respects.

Look, it's important that these children get educated, it's important that we give them the opportunities to improve their condition in life. But I think it's also important, they have an ability to create their own personal wealth and wealth for their families.

There are other initiatives supported by corporations that address these kinds of financial inequities. And you've asked a number of them, how can corporate America help in closing the racial wealth gap? And does it actually want to?

One of the things that I did coming out of the pandemic and the murder of George Floyd was formed the Southern Communities Initiative, which was a consortium of companies to address some of these, you know, these issues, specifically for communities of color in the south, where almost 50 percent of black Americans live. And we've identified in essence, six communities with Atlanta, Birmingham, Charlotte, Houston, Memphis and New Orleans. And what we're looking at to do and are offering corporate and philanthropic organizations are measured and vetted, shovel ready ways for them to help fulfill, and not only their pledges, but some of the racial wealth gaps and opportunity gaps that exist.

Many of them are looking for ways to do it and looking for ways that are reliable, we built out what we'll call the infrastructure so that you can now drive if you want to drive capital to improve the condition in the banking infrastructure, or the healthcare infrastructure or the things for, you know, food disparity issues. So that's been one of the most important parts of this is actually betting and pulling together the systems and the infrastructure and the partnerships so that people have reliable places to put their capital.

If you had two pieces of advice for people to get on the road to financial literacy, what would it be?

First, get up to speed and understand what is financial literacy for your family. In some cases, it might be gaining some independence, through some investments for your, you know, for your retirement. In this case, it might be you know, buying a house, investing in stocks, investing in bonds, and really understanding how to do that.

And the second, which enables you to do the first rank is you know, I think about to go call on your Congress, people to get them to ensure that your community and your businesses all have access to broadband, and the internet. I mean, that is now the purveyor of information and insights. And we've just found too many communities of color, actually don't have access to that level of service that enables you to you know, teach, educate and train.

And so those are the two things that I would point to as important for depending upon how far away you are from getting on the road to financial literacy to really embark upon.

Philanthropist and entrepreneur, Robert Smith. Thank you for your time.

Thank you, Laura.

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Laura Barrón-López is the White House Correspondent for the PBS NewsHour, where she covers the Biden administration for the nightly news broadcast. She is also a CNN political analyst.

Kaisha Young is a general assignment producer at PBS News Weekend.

Mekhi Hill is a production assistant at the PBS NewsHour.

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How to Write Perfect Persuasive Essays in 5 Simple Steps

WHAT IS A PERSUASIVE ESSAY?

A persuasive text presents a point of view around a topic or theme that is backed by evidence to support it.

The purpose of a persuasive text can be varied.  Maybe you intend to influence someone’s opinion on a specific topic, or you might aim to sell a product or service through an advertisement.

The challenge in writing a good persuasive text is to use a mix of emotive language and, in some cases, images that are supported by hard evidence or other people’s opinions.

In a persuasive essay or argument essay, the student strives to convince the reader of the merits of their opinion or stance on a particular issue. The student must utilise several persuasive techniques to form a coherent and logical argument to convince the reader of a point of view or to take a specific action.

PERSUADING PEOPLE REQUIRES A CONSISTENT APPROACH…

Persuasive texts are simple in structure.  You must clearly state your opinion around a specific topic and then repeatedly reinforce your opinions with external facts or evidence.  A robust concluding summary should leave little doubt in the reader’s mind.  ( Please view our planning tool below for a detailed explanation. )

TYPES OF PERSUASIVE TEXT

We cover the broad topic of writing a general persuasive essay in this guide, there are several sub-genres of persuasive texts students will encounter as they progress through school. We have complete guides on these text types, so be sure to click the links and read these in detail if required.

• Argumentative Essays – These are your structured “Dogs are better pets than Cats” opinion-type essays where your role is to upsell the positive elements of your opinions to your audience whilst also highlighting the negative aspects of any opposing views using a range of persuasive language and techniques.
• Advertising – Uses persuasive techniques to sell a good or service to potential customers with a call to action.
• Debating Speeches – A debate is a structured discussion between two teams on a specific topic that a moderator judges and scores. Your role is to state your case, sell your opinions to the audience, and counteract your opposition’s opinions.
• Opinion Articles, Newspaper Editorials. – Editorials often use more subtle persuasive techniques that blur the lines of factual news reporting and opinions that tell a story with bias. Sometimes they may even have a call to action at the end.
• Reviews – Reviews exist to inform others about almost any service or product, such as a film, restaurant, or product. Depending on your experiences, you may have firm opinions or not even care that much about recommending it to others. Either way, you will employ various persuasive techniques to communicate your recommendations to your audience.
• Please note a DISCUSSION essay is not a traditional persuasive text, as even though you are comparing and contrasting elements, the role of the author is to present an unbiased account of both sides so that the reader can make a decision that works best for them. Discussions are often confused as a form of persuasive writing.

A COMPLETE TEACHING UNIT ON PERSUASIVE WRITING SKILLS

Teach your students to produce writing that  PERSUADES  and  INFLUENCES  thinking with this  HUGE  writing guide bundle covering: ⭐ Persuasive Texts / Essays ⭐ Expository Essays⭐ Argumentative Essays⭐ Discussions.

A complete 140 PAGE unit of work on persuasive texts for teachers and students. No preparation is required.

THE STRUCTURE OF A PERSUASIVE ESSAY

1. Introduction

In the introduction, the student will naturally introduce the topic. Controversial issues make for great topics in this writing genre. It’s a cliche in polite society to discourage discussions involving politics, sex, or religion because they can often be very divisive. While these subjects may not be the best topics of conversation for the dinner table at Thanksgiving, they can be perfect when deciding on a topic for persuasive writing. Obviously, the student’s age and abilities should be considered, as well as cultural taboos, when selecting a topic for the essay. But the point holds, the more controversial, the better.

Let’s take a look at some of the critical elements of the introduction when writing a persuasive essay:

Title: Tell your audience what they are reading.

This will often be posed as a question; for example, if the essay is on the merits of a vegetarian lifestyle, it may be called something like: To Eat Meat or Not?

Hook : Provide your audience with a reason to continue reading.

As with any genre of writing, capturing the reader’s interest from the outset is crucial. There are several methods of doing this, known as hooks. Students may open their essays with anecdotes, jokes, quotations, or relevant statistics related to the topic under discussion.

Background: Provide some context to your audience.

In this introductory section, students will provide the reader with some background on the topic. This will place the issue in context and briefly weigh some opinions on the subject.

Thesis statement: Let the audience know your stance.

After surveying the topic in the first part of the introduction, it is now time for the student writer to express their opinion and briefly preview the points they will make later in the essay.

2. Body Paragraphs

The number of paragraphs forming this essay section will depend on the number of points the writer chooses to make to support their opinion. Usually three main points will be sufficient for beginning writers to coordinate. More advanced students can increase the number of paragraphs based on the complexity of their arguments, but the overall structure will largely remain intact.

Be sure to check out our complete guide to writing perfect paragraphs here .

The TEEL acronym is valuable for students to remember how to structure their paragraphs.  Read below for a deeper understanding.

Topic Sentence:

The topic sentence states the central point of the paragraph. This will be one of the reasons supporting the thesis statement made in the introduction.

These sentences will build on the topic sentence by illustrating the point further, often by making it more specific.

These sentences’ purpose is to support the paragraph’s central point by providing supporting evidence and examples. This evidence may be statistics, quotations, or anecdotal evidence.

The final part of the paragraph links back to the initial statement of the topic sentence while also forming a bridge to the next point to be made. This part of the paragraph provides some personal analysis and interpretation of how the student arrived at their conclusions and connects the essay as a cohesive whole.

3. Conclusion

The conclusion weaves together the main points of the persuasive essay. It does not usually introduce new arguments or evidence but instead reviews the arguments made already and restates them by summing them up uniquely. It is important at this stage to tie everything back to the initial thesis statement. This is the writer’s last opportunity to drive home their point, to achieve the essay’s goal, to begin with – persuade the reader of their point of view.

Ending an essay well can be challenging, but it is essential to end strongly, especially for persuasive essays. As with the hooks of the essay’s opening, there are many tried and tested methods of leaving the reader with a strong impression. Encourage students to experiment with different endings, for example, concluding the essay with a quotation that amplifies the thesis statement.

Another method is to have the student rework their ending in simple monosyllabic words, as simple language often has the effect of being more decisive in impact. The effect they are striving for in the final sentence is the closing of the circle.

Several persuasive writing techniques can be used in the conclusion and throughout the essay to amp up the persuasive power of the writing. Let’s take a look at a few.

ETHOS, PATHOS & LOGOS TUTORIAL VIDEO (2:20)

TIPS FOR WRITING A GREAT PERSUASIVE ESSAY

PERSUASIVE TECHNIQUES

In this article, we have outlined a basic structure that will be helpful to students in approaching the organization of their persuasive writing. It will also be helpful for the students to be introduced to a few literary techniques that will help your students to present their ideas convincingly. Here are a few of the more common ones:

Repetition: There is a reason why advertisements and commercials are so repetitive – repetition works! Students can use this knowledge to their advantage in their persuasive writing. It is challenging to get the reader to fully agree with the writer’s opinion if they don’t fully understand it. Saying the same thing in various ways ensures the reader gets many bites at the ‘understanding’ cherry.

Repetition Example: “The use of plastic bags is not only bad for the environment, but it is also bad for our economy. Plastic bags are not biodegradable, meaning they will not decompose and will continue to take up space in landfills. Plastic bags are also not recyclable, meaning they will not be reused and will instead end up in landfills. Plastic bags are not only bad for the environment, but they are also bad for our economy as they are costly to dispose of and take up valuable space in landfills.”

In this example, the phrase “not only bad for the environment but also bad for our economy” is repeated multiple times to reinforce the idea that plastic bags are not just a problem for the environment but also the economy. The repetition of the phrase emphasizes the point and makes it more persuasive.

It is also important to note that repetition could be used differently, such as repeating a word or phrase to create rhythm or emphasis.

Storytelling: Humans tend to understand things better through stories. Think of how we teach kids important values through time-tested fables like Peter and the Wolf . Whether through personal anecdotes or references to third-person experiences, stories help climb down the ladder of abstraction and reach the reader on a human level.

Storytelling Example: “Imagine you are walking down the street, and you come across a stray dog clearly in need of food and water. The dog looks up at you with big, sad eyes, and you cannot help but feel a twinge of compassion. Now, imagine that same scenario, but instead of a stray dog, it’s a homeless person sitting on the sidewalk. The person is clearly in need of food and shelter, and their eyes also look up at her with a sense of hopelessness.

The point of this story is to show that just as we feel compelled to help a stray animal in need, we should also feel compelled to help a homeless person. We should not turn a blind eye to the suffering of our fellow human beings, and we should take action to address homelessness in our community. It is important to remember that everyone deserves a roof over their head and a warm meal to eat. The story is designed to elicit an emotional response in the reader and make the argument more relatable and impactful.

By using storytelling, this passage creates an image in the reader’s mind and creates an emotional connection that can be more persuasive than just stating facts and figures.

Dissent: We live in a cynical age, so leaving out the opposing opinion will smack of avoidance to the reader. Encourage your students to turn to that opposing viewpoint and deal with those arguments in their essays .

Dissent Example: “Many people argue that students should not have to wear uniforms in school. They argue that uniforms stifle creativity and individuality and that students should be able to express themselves through their clothing choices. While these are valid concerns, I strongly disagree.

In fact, uniforms can actually promote individuality by levelling the playing field and removing the pressure to dress in a certain way. Furthermore, uniforms can promote a sense of community and belonging within a school. They can also provide a sense of discipline and structure, which can help to create a more focused and productive learning environment. Additionally, uniforms can save families money and eliminate the stress of deciding what to wear daily .

While some may argue that uniforms stifle creativity and individuality, the benefits of uniforms far outweigh the potential drawbacks. It is important to consider the impact of uniforms on the school as a whole, rather than focusing solely on individual expression.”

In this example, the writer presents the opposing viewpoint (uniforms stifle creativity and individuality) and then provides counterarguments to refute it. By doing so, the writer can strengthen their own argument and present a more convincing case for why uniforms should be worn in school.

A Call to Action: A staple of advertising, a call to action can also be used in persuasive writing. When employed, it usually forms part of the conclusion section of the essay and asks the reader to do something, such as recycle, donate to charity, sign a petition etc.

A quick look around reveals to us the power of persuasion, whether in product advertisements, newspaper editorials, or political electioneering; persuasion is an ever-present element in our daily lives. Logic and reason are essential in persuasion, but they are not the only techniques. The dark arts of persuasion can prey on emotion, greed, and bias. Learning to write persuasively can help our students recognize well-made arguments and help to inoculate them against the more sinister manifestations of persuasion.

Call to Action Example: “Climate change is a pressing issue that affects us all, and it’s important that we take action now to reduce our carbon footprint and protect the planet for future generations. As a society, we have the power to make a difference and it starts with small changes that we can make in our own lives.

I urge you to take the following steps to reduce your carbon footprint:

• Reduce your use of single-use plastics
• Use public transportation, carpool, bike or walk instead of driving alone.
• Support clean energy sources such as solar and wind power
• Plant trees and support conservation efforts

It’s easy to feel like one person can’t make a difference, but the truth is that every little bit helps. Together, we can create a more sustainable future for ourselves and for the planet.

So, let’s take action today and make a difference for a better future, it starts with minor changes, but it all adds up and can make a significant impact. We need to take responsibility for our actions and do our part to protect the planet.”

In this example, the writer gives a clear and specific call to action and encourages the reader to take action to reduce their carbon footprint and protect the planet. By doing this, the writer empowers the reader to take action and enables them to change.

Now, go persuade your students of the importance of perfecting the art of persuasive writing!

A COMPLETE UNIT ON TEACHING FACT AND OPINION

This  huge 120-page resource combines four different fact and opinion activities that you can undertake as a  WHOLE GROUP  or as  INDEPENDENT READING GROUP TASKS  in either  DIGITAL  or  PRINTABLE TASKS.

20 POPULAR PERSUASIVE ESSAY TOPICS FOR STUDENTS

Writing an effective persuasive essay demonstrates a range of skills that will be of great use in nearly all aspects of life after school.

In essence, if you can influence a person to change their ideas or thoughts on a given topic through how you structure your words and thoughts, you possess a very powerful skill.

Be careful not to rant wildly.  Use facts and other people’s ideas who think similarly to you in your essay to strengthen your concepts.

Your biggest challenge in getting started may be choosing a suitable persuasive essay topic.  These 20 topics for a persuasive essay should make this process a little easier.

• WHY ARE WE FASCINATED WITH CELEBRITIES AND WEALTHY PEOPLE ON TELEVISION AND SOCIAL MEDIA?
• IS IT RIGHT FOR SCHOOLS TO RAISE MONEY BY SELLING CANDY AND UNHEALTHY FOODS TO STUDENTS?
• SHOULD GIRLS BE ALLOWED TO PLAY ON BOYS SPORTING TEAMS?
• IS TEACHING HANDWRITING A WASTE OF TIME IN THIS DAY AND AGE?
• SHOULD THERE BE FAR GREATER RESTRICTIONS AROUND WHAT CAN BE POSTED ON THE INTERNET?
• SHOULD PROFESSIONAL ATHLETES HAVE TO TAKE DRUG TESTS?
• ARE TEENAGE PREGNANCY SHOWS A NEGATIVE OR POSITIVE INFLUENCE ON VIEWERS?
• SHOULD GAMBLING BE PROMOTED IN ANY WAY IN SPORTS EVEN THOUGH IT BRINGS IN LARGE AMOUNTS OF REVENUE?
• SHOULD SPORTING TEAMS THAT LOSE BE REWARDED BY RECEIVING INCENTIVES SUCH AS HIGH DRAFT PICKS AND / OR FINANCIAL BENEFITS?
• SHOULD SHARKS THAT ATTACK PEOPLE BE DESTROYED? SHOULD WE GET INVOLVED IN FOREIGN CONFLICTS AND ISSUES THAT DON’T DIRECTLY AFFECT OUR COUNTRY?
• SHOULD WE GET INVOLVED IN FOREIGN CONFLICTS AND ISSUES THAT DON’T DIRECTLY AFFECT OUR COUNTRY?
• COULD VIDEO GAMES BE CONSIDERED AS A PROFESSIONAL SPORT?
• IF YOU WERE THE LEADER OF YOUR COUNTRY AND HAD A LARGE SURPLUS TO SPEND, WHAT WOULD YOU DO WITH IT?
• WHEN SHOULD A PERSON BE CONSIDERED AND TREATED AS AN ADULT?
• SHOULD SMOKING BECOME AN ILLEGAL ACTIVITY?
• SHOULD THE VOTING AGE BE LOWERED?
• DOES PROTECTIVE PADDING IN SPORTS MAKE IT MORE DANGEROUS?
• SHOULD CELL PHONES BE ALLOWED IN THE CLASSROOM?
• IS TEACHING A FOREIGN LANGUAGE A WASTE OF TIME?
• SHOULD WE TEACH ETIQUETTE IN SCHOOLS?

PERSUASIVE PROMPTS FOR RELUCTANT WRITERS

If your students need a little more direction and guidance, here are some journal prompts that include aspects to consider.

• Convince us that students would be better off having a three-day weekend .  There are many angles you could take with this, such as letting children maximize their childhood or trying to convince your audience that a four-day school week might actually be more productive.
• Which is the best season?  And why?   You will really need to draw on the benefits of your preferred season and sell them to your audience.  Where possible, highlight the negatives of the competing seasons.  Use lots of figurative language and sensory and emotional connections for this topic.
• Aliens do / or don’t exist?  We can see millions of stars surrounding us just by gazing into the night sky, suggesting alien life should exist, right? Many would argue that if there were aliens we would have seen tangible evidence of them by now.  The only fact is that we just don’t know the answer to this question.  It is your task to try and convince your audience through some research and logic what your point of view is and why.
• Should school uniforms be mandatory? Do your research on this popular and divisive topic and make your position clear on where you stand and why.  Use plenty of real-world examples to support your thoughts and points of view.  
• Should Smartphones be banned in schools?   Whilst this would be a complete nightmare for most students’ social lives, maybe it might make schools more productive places for students to focus and learn.  Pick a position, have at least three solid arguments to support your point of view, and sell them to your audience.

VISUAL JOURNAL PROMPTS FOR PERSUASIVE WRITING

Try these engaging, persuasive prompts with your students to ignite the writing process . Scroll through them.

Persuasive Essay Examples (Student Writing Samples)

Below are a collection of persuasive essay samples.  Click on the image to enlarge and explore them in greater detail.  Please take a moment to read the persuasive texts in detail and the teacher and student guides highlight some of the critical elements of writing a persuasion.

Please understand these student writing samples are not intended to be perfect examples for each age or grade level but a piece of writing for students and teachers to explore together to critically analyze to improve student writing skills and deepen their understanding of persuasive text writing.

We recommend reading the example either a year above or below, as well as the grade you are currently working with, to gain a broader appreciation of this text type.

VIDEO TUTORIALS FOR PERSUASIVE WRITING

OTHER GREAT ARTICLES RELATED TO PERSUASIVE ESSAY WRITING

Teaching Resources

Use our resources and tools to improve your student’s writing skills through proven teaching strategies.

WHERE CAN I FIND A COMPLETE UNIT OF WORK ON HOW TO WRITE PERSUASIVE ESSAYS?

We pride ourselves on being the web’s best resource for teaching students and teachers how to write a persuasive text. We value the fact you have taken the time to read our comprehensive guides to understand the fundamentals of writing skills.

We also understand some of you just don’t have the luxury of time or the resources to create engaging resources exactly when you need them.

If you are time-poor and looking for an in-depth solution that encompasses all of the concepts outlined in this article, I strongly recommend looking at the “ Writing to Persuade and Influence Unit. ”

Working in partnership with Innovative Teaching Ideas , we confidently recommend this resource as an all-in-one solution to teach how to write persuasively.

This unit will find over 140 pages of engaging and innovative teaching ideas.

PERSUASIVE ESSAY WRITING CHECKLIST AND RUBRIC BUNDLE

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Alameda City Council Votes to Stop Cloud Brightening Test

City officials decided to block testing of an experimental technology to fight global warming, even though experts hired by the city found that it posed no health risk to residents.

By Soumya Karlamangla

The international debate over how much to interfere with nature to slow the planet’s warming was fought on a surprising stage this week: a City Council meeting in Alameda, on the eastern edge of San Francisco Bay.

Researchers had chosen Alameda, a city of about 75,000 residents built on a group of islands south of Oakland, as the first place to field test a device intended to brighten clouds, so that they would reflect more light back into space.

But concerns about the experiment led Alameda officials last month to ask the scientists to suspend the testing . And early Wednesday, at the end of a contentious meeting that dragged on past 1 a.m., the Alameda City Council voted unanimously to call it off entirely.

“I don’t have a huge desire to be on the cutting edge,” said Mayor Marilyn Ezzy Ashcraft.

Strong emotions are stirred by cloud brightening, and more broadly, by what is called solar geoengineering or climate intervention: attempts to temporarily cool the Earth at a time when global warming is accelerating. Scientists see these interventions as possible ways to buy time for the world to move away from the main driver of global warming, the use of fossil fuels. But the concepts tend to be divisive, because some people are uncomfortable with trying to intervene in the climate.

In Alameda, a team of researchers led by the University of Washington began conducting cloud brightening experiments in April, spraying tiny sea-salt particles into the air across the flight deck of a decommissioned aircraft carrier, the U.S.S. Hornet, that is moored in the city. The scientists wanted to see whether they could consistently spray the right size of particle.

If the device works, the idea is eventually to use it to change the composition of clouds above the ocean, boosting their reflectivity and bouncing more of the sun’s rays back into space before they can warm the Earth’s surface. The experiment in Alameda was the first outdoor test of such a device in the United States.

Alameda residents began expressing alarm about the technology being used in their backyard. Soon after the experiment began, the city asked the researchers to stop testing while they evaluated the risks.

“If there are issues, we want to understand it, and we want to put limits on what they’re doing,” Griff Neal, a chemical engineer who has lived in Alameda for 25 years, said this week. He said he was worried about the effects of inhaling the particles on older residents who work as volunteers on the Hornet, which is now a floating museum, and students at a nearby high school.

He questioned why scientists from Washington State were conducting the experiments in his community and not their own. “There are certainly neighbors of mine who have said, ‘Why aren’t they doing it in Puget Sound?’” he said.

The researchers said that the often foggy conditions in San Francisco Bay made it an ideal spot for the experiment, which they hoped to run for at least 20 weeks in various kinds of weather.

Working on the deck of the Hornet offered conditions similar to the open ocean, and the ship’s role as a museum would allow the public to engage with the research, one of the primary goals of the program, according to Sarah Doherty, an atmospheric scientist and the program director of the Marine Cloud Brightening Program at the University of Washington.

Analysts hired by the City of Alameda to assess the experiment found that it posed no health risk . They said the salt water being sprayed by scientists was similar to natural sea spray from the ocean. The city manager recommended on Tuesday evening that the council approve the project. But the councilors ultimately decided that they still weren’t sure the experiments were harmless.

“I don’t think it’s appropriate for our community to be asked to bear that risk,” Trish Herrera Spencer, one of the five councilors, said at the meeting. “I don’t think this is the right place.”

It is unclear what will happen next. Alameda officials say that the project cannot continue on the Hornet without their approval. The University of Washington research team could not be reached immediately for comment.

During the meeting, the debate moved beyond the impact of the salt particles, and got into whether climate interventions like cloud brightening should be attempted at all. Some environmentalists worry that the technology could distract people from addressing the causes of climate change, and slow the momentum of efforts like switching to renewable energy and electric vehicles.

“While this is a local decision, it has far-reaching consequences,” Gary Hughes of the environmental group Hands Off Mother Earth Alliance said at the meeting. “There are global climate justice dynamics at stake.”

Another public commenter who was a youth climate leader in Honduras urged the council to approve the project, saying that the University of Washington had expertise that could help countries like his that are most affected by climate change. He also called on the lawmakers to consider “the bigger implications that this has for countries like mine.”

Tony Daysog, the vice mayor of Alameda, said he and other elected officials had been inundated with emails from residents with strong opinions about the project. He said Alameda, a rare California city on an archipelago, was particularly susceptible to problems like sea-level rise.

“We do have to take climate change seriously, more so than many others,” Daysog said. “At the end of the day, you can’t make everybody happy. You just have to do what you think is right.”

An in-depth look at marine cloud brightening by Christopher Flavelle, a New York Times reporter who covers climate issues.

The rest of the news

A new program by the state’s consumer protection agency aims to assist California borrowers who struggle to navigate the student loan system, the Los Angeles Times reports.

California officials say a recent increase in wildfire activity could portend a more active fire season than expected, The Washington Post reports.

Southern California

Migrant traffic in San Diego has reached its highest level in decades as asylum seekers from around the world try to enter the U.S. through California.

The most hotly anticipated restaurant opening in Los Angeles this year might be a sandwich shop run by two stars of the Bravo television show “Vanderpump Rules.”

Central California

The San Joaquin County Courthouse was evacuated and placed under lockdown Tuesday morning because of a bomb threat . A suspect who made the threat directly to courthouse security officers was immediately detained, CBS Sacramento reports.

Northern California

A court ruled that the environmental review of the Sites Reservoir project in Northern California, challenged by some environmentalists, was sufficient for the project to go forward, The Sacramento Bee reports.

And before you go, some good news

The Orange County public library system has begun a meal-serving program and a bilingual marketing campaign for this summer, The Orange County Register reports .

Lunch at the Library, currently held at six county library branches, served 16,000 hot meals to school-age children in 2023. The program was created by County Librarian Julie Quillman and her administrative team to promote local libraries to Hispanic communities.

A grant of $250,000 from the Samueli Foundation will support the program, as well as others intended to help teenagers find employment and improve their financial literacy.

Thanks for reading. I’ll be back tomorrow. — Soumya

P.S. Here’s today’s Mini Crossword .

Halina Bennet , Ama Sarpomaa and Briana Scalia contributed to California Today. You can reach the team at [email protected].

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Soumya Karlamangla reports on California news and culture and is based in San Francisco. She writes the California Today newsletter. More about Soumya Karlamangla