The discourse around financial literacy in America frequently concentrates on practical necessities such as budgeting, saving and understanding credit scores. However, as the economy becomes more complex, many Americans fail to understand a new layer of advanced financial knowledge. It’s not just about spending less than you make; it’s also about understanding new investment vehicles, navigating ever-changing borrowing alternatives and detecting the hidden risks included in sophisticated financial products. A startling percentage of us — from all income levels — have difficulty navigating this complex environment. This disparity jeopardizes not only each household but also our overall economic resiliency. The 2022 National Financial Capability Study highlights that individuals with high financial literacy are more likely to demonstrate positive financial behaviors, underscoring the urgent need for more in-depth financial education.

At first sight, it appears we are making progress. In response to mounting concerns, many states require high school students to take a personal finance course. According to the Council for Economic Education, 35 states require some type of high school financial literacy course before graduation. On the surface, that’s excellent news: Students are learning about basic budgeting, the risks of credit card debt and how to begin saving for college. However, the majority of these courses do not provide in-depth training on how to understand the fast-changing financial landscape. In an era where everything from car loans to college tuition may have variable interest rates, and where new platforms attract consumers with “buy now, pay later” offers, a superficial approach to financial literacy is simply insufficient.

My own journey underscores these systemic shortcomings. I vividly recall the day I purchased my first car with a very high APR car loan. Despite having a steady job and a reliable income, I found myself locked into very unfavorable terms due to my invisible credit history, having immigrated to the United States at the age of 32. That painful experience was a wake-up call: It demonstrated that the U.S. financial system often assumes a baseline of financial knowledge that many of us never received. More importantly, it reinforced my conviction that advanced financial literacy isn’t a niche subject confined to Wall Street experts — it is a critical need for everyone navigating today’s complex financial landscape.

The distinction between formal and informal financial instruments is becoming less clear. Tech giants develop digital wallets that also serve as lending services, while peer-to-peer platforms promise easy returns for those prepared to lend money to strangers. Risk assessment, leverage and derivatives, which were formerly restricted to Wall Street, have been repackaged, renamed, and made available to everyday people. Without a more in-depth understanding of how these products work, it’s easy to overlook how rapidly fees, interest charges and even investment losses accumulate. This is why basic budgeting abilities, while necessary, fall short of what modern consumers genuinely require.

Some may argue that regulators and financial institutions should ensure greater transparency in risk disclosures. While that is a significant aspect of the story, there is a more fundamental question: Why do so many Americans remain unprepared to examine those disclosures, even when they are written in clear language? Most of us do not learn advanced financial analysis in high school, and by the time we reach college or the workplace, the topic is frequently viewed as a specialist discipline rather than a life skill. Meanwhile, states’ mandates for high school curricula frequently emphasize immediate, practical knowledge — such as how to create a bank account — rather than the strategic thinking required to manage real-world financial products.

We see the consequences of this gap every day. Homebuyers get into mortgages they don’t fully grasp, only to be surprised with high total interest throughout the mortgage period. Employees participating in 401(k) plans may choose funds with little regard for market volatility, leaving their nest eggs vulnerable to sudden downturns. Individual blunders can have far-reaching economic consequences when defaults rise, or small businesses struggle to repay debts, causing a ripple effect in local and national markets.

However, there are encouraging indicators of how some schools, nonprofits and businesses have begun to address financial literacy. Universities are doing experiential learning in which students manage simulated portfolios that react to real-time market situations. Employers are launching mini-courses that go beyond retirement planning, urging employees to follow economic signals — such as inflation trends or Federal Reserve announcements — and alter their personal strategy as needed. These efforts mimic the recent campaign to increase high school financial literacy but go a step further by emphasizing practical, hands-on experience over rote instruction.

A similar level of rigor might revolutionize high school curricula. Instead of simply teaching students how to “save money,” advanced classes might cover topics such as compound interest, asset allocation or the benefits and drawbacks of fixed-rate vs variable-rate loans. Integrating technology into simulations or interactive online platforms would provide students with an authentic experience of real-world risk and return. If we can teach mathematics, chemistry and physics, we can surely provide our students with a better knowledge of the financial forces that influence their daily lives.

Turning the tide on financial literacy takes more than just a few concepts for living within your means. In a dynamic, tech-driven economy, Americans require a more robust toolkit — one that enables them to understand how new lending services, investment apps and global market shifts affect their wallets. Shifting the emphasis from basic budgeting to applied financial thought should assist people of all ages in making deliberate rather than reactive decisions.

Expanding the conversation is more than just a personal finance issue. A workforce that knows how interest rates affect borrowing or how global events affect credit availability is better able to promote entrepreneurship, innovation and economic progress. The sooner we grasp that “financial literacy” must go beyond the basics — and incorporate that deeper knowledge into classrooms, businesses and community programs — the more resilient we will be as individuals and as a society.

Martin Mulyadi is a professor of accounting at Shenandoah University School of Business in Winchester, Virginia.