Most young people are encouraged to work hard at school, secure a good job, and build a financially stable future. Yet very few are taught how money really works. According to the TIAA Institute-GFLEC Personal Finance Index, U.S. adults correctly answered just 47% of personal finance questions in 2026, marking the lowest result in the index’s 10-year history. Gen Z performed even worse, scoring just 38%. While young people are prepared to enter the workforce, they are often left without the knowledge needed to make important financial decisions.
This lack of financial knowledge can have lasting consequences for household finances. The Federal Reserve reported that only 63% of U.S. adults could cover an unexpected $400 expense using cash or its equivalent in 2025. Even those earning a regular income may have very little financial breathing room when unexpected costs arise. With the cost of living continuing to put pressure on households, that financial cushion can become even harder to maintain. Having a steady paycheck does not necessarily mean having financial security.
Education systems have traditionally focused on preparing students for employment. They are taught to gain qualifications, develop professional skills, and pursue career opportunities, but receive far less guidance on managing income, building wealth, or understanding the long-term financial impact of their career choices. Many finish school knowing how to solve complicated equations but lacking basic knowledge of budgeting, borrowing, and saving. Financial conversations are also not always common within families. Consequently, people can find themselves making significant life decisions without fully understanding the financial commitments involved.
These challenges often become more apparent later in life. Many people only begin to question their financial direction after spending years in their careers, when family commitments, mortgages, and other responsibilities have already accumulated. Financial pressure can influence relationships, personal wellbeing, and the freedom to make different choices. For some, the realization comes only when changing direction has become considerably more difficult. The problem is not necessarily one bad financial decision, but years of following a path that may never provide the future they had envisioned.
Ross Wilkin, founder and principal of Wilkin & Associates and co-author of The Freedom Blueprint, has spent years helping people reconsider their approach to money and financial independence. In his chapter, Broke by Default, he explores how people can find themselves struggling financially by following conventional expectations without understanding the fundamentals of money. He argues that schools often focus on preparing students to become employees rather than introducing them to the wider possibilities of generating income. “Instead of asking young people what they want to be, we should ask them how they want to live,” Wilkin says.
Wilkin encourages individuals to start by identifying the lifestyle they hope to achieve and then consider what level and type of income would make it possible. He highlights how many young people pursue particular careers without first understanding the typical earning potential of those professions. From his perspective, securing a good job does not automatically guarantee financial independence. “Effort matters, but direction matters more,” Wilkin says. “The wrong financial vehicle can keep people working hard without ever reaching their goals.”
He also believes that achieving financial independence often means considering opportunities beyond a traditional salary. In addition to running his business in the building industry, Wilkin has developed another income stream through a wellness-focused venture, which he considers an example of how people can create greater financial flexibility. Through mentoring, he also supports others interested in exploring business ownership. However, he emphasizes the importance of understanding any opportunity, including its structure and potential risks, before making a commitment. “No one should rely on a single source of income without understanding what else is possible,” Wilkin says.
For Wilkin, developing awareness is the first and most important step. Many individuals never explore alternative financial options because they believe their current circumstances are sufficient. He argues that financial education should not end when someone leaves school, but should remain an ongoing part of life. Taking the time to assess financial decisions and question existing plans can help people identify opportunities and retain more control over their future.
His message is relevant to two distinct groups. The first is young people preparing to leave education and enter the workforce, who have an opportunity to make career choices with a better understanding of their financial consequences. The second is those already established in their careers who may feel that, despite earning an income and working hard, they have not achieved the lifestyle or freedom they originally wanted. Wilkin believes both groups should take a closer look at where their current financial decisions are taking them.
Ultimately, Wilkin sees financial literacy as a way of creating choices. It is about having the freedom to decide how to use one’s time, what kind of lifestyle to pursue, and how to build a future that reflects personal priorities. He encourages people to examine whether their financial habits and decisions are genuinely supporting those ambitions. Society places considerable emphasis on teaching people how to earn a living, but learning how to build a financially independent life requires a much broader understanding of money.
