Why Financial Literacy Is a Political Issue—And Why It Matters Now More Than Ever

April marks Financial Literacy Month, a time when advocates push for greater public understanding of money management—from budgeting and saving to investing and debt reduction. But what should be a universal, nonpartisan cause has become entangled in America’s increasingly polarized politics. Financial literacy isn’t just about dollars and cents; it’s about access, equity, and control. In an economy where every decision—housing, healthcare, education—is shaped by financial competency, the stakes are high. And yet, the very systems that could help close the gap are being dismantled.

“Money touches every part of your life—yet too many people are flying blind when it comes to managing it,” says George Kailas, CEO at Prospero.ai. “That’s because so many Americans are financially illiterate. The financial world is full of sharks and if you can’t understand the language of money, you’re at the mercy of those who do.”

Financial illiteracy is not an accident. It’s the result of decades of systemic neglect, exacerbated by an underfunded and often politicized public education system. The current administration’s efforts to slash the size and scope of federal departments—including those responsible for overseeing education—threaten to push financial literacy even further out of reach for the average American. The Department of Education, already stretched thin, plays a key role in promoting financial education, especially among underserved communities. Weakening it weakens the financial future of an entire generation.

This push toward “small government” often masquerades as a call for efficiency or freedom—but in reality, it’s a veiled divestment from the everyday needs of working families. Without comprehensive financial education embedded in public school curricula, children grow up without knowing how to open a bank account, understand interest rates, avoid predatory lenders, or invest for retirement. And once they’re adults, the consequences are all too real: credit card debt, payday loan cycles, student loan confusion, and lack of retirement savings.

“Financial literacy is conflated with getting rich when in reality, it’s about staying out of debt, making smart decisions, and securing your future,” Kailas continues. “The difference between financial stress and financial freedom isn’t how much you make—it’s how well you understand what to do with it.”

In the absence of accessible education, financial knowledge has become a privilege. Wealthy families pass on financial strategies to their children. Poorer families are left to figure it out through trial and error—often at great cost. This knowledge gap becomes a power gap. When only a portion of the population understands how to build and protect wealth, economic inequality is perpetuated.

And while tech-forward companies like Prospero.ai are working to close the gap with tools and resources, the role of government remains vital. Financial literacy should not be a luxury or a partisan issue. It should be a foundational part of every citizen’s education, regardless of ZIP code or political affiliation.

Kailas offers three tips for anyone looking to take control of their financial life:

1. Master the Basics – “Learn fundamental concepts like budgeting, saving, debt management, and compound interest. Books like The Psychology of Money and free online resources from the Consumer Financial Protection Bureau are a great place to start.”

2. Understand Credit and Debt – “Your credit score affects everything from loan approvals to interest rates. Learn how to manage debt wisely, avoid high-interest traps, and build strong credit for long-term financial stability.”

3. Start Investing Early – “Even small investments compound over time. Learn about index funds, retirement accounts (401(k), IRA), and risk management so your money works for you instead of sitting idle.”

Financial literacy isn’t just a personal issue—it’s a public one. If we want to build a nation of economically empowered citizens, we can’t keep gutting the very institutions responsible for that education. As political leaders debate the size and role of government, it’s time for voters to ask: Who benefits from a financially uninformed public? And more importantly—who loses?

This April, let Financial Literacy Month be more than a hashtag. Let it be a call to action: to invest in education, demand transparency, and ensure that every American—regardless of income—has the tools to navigate the economy with confidence and dignity.