Building Financial Literacy Through Credit Education
From 'I wish I knew' to 'I’m so glad I know': empowering consumers through financial literacy

Financial Literacy is essential to accessing credit and achieving life goals. The FICO® Score helps millions of people every year gain access to the credit they need to do things like get an education, buy a first home, or purchase a car. Because the FICO Score plays such a pivotal role in a consumer's ability to access credit, we at FICO are acutely aware of the need for widespread financial literacy and education. Studies frequently highlight gaps in financial knowledge, revealing a recurring theme: people feel underprepared to navigate the complexities of personal finance. In fact, FICO recently conducted a survey and found people feel under educated when it comes to financial literacy. The results revealed strong support for bringing these skills into the classroom. 77 percent of Gen Z adults said personal finance should be part of the high school curriculum, and 61 percent believe K-12 schools should take the lead in teaching students how to manage their finances. I strongly believe this would make a significant difference.
Why FICO Cares About Financial Literacy
Understanding your FICO® Score and the mechanics of credit is essential to unlocking economic well-being, cultivating financial inclusion, and fostering consumer empowerment. While traditional financial education often emphasizes basics like budgeting and balancing a checkbook, credit education is equally crucial yet frequently overlooked.
I can’t help but note a recurring theme I’ve encountered during my decade of working with consumers: “I wish I knew.” Many people don’t realize how missing a single payment can impact their credit score and, in turn, limit their financial options. It's not just about the numbers; it's about how these numbers affect every day financial choices. I’ve encountered stories of individuals who struggled to rent apartments, purchase phones, or qualify for other financial products because of missed payments, unaware that reaching out to financial institutions to negotiate terms might have helped them avoid such outcomes. These stories reveal a common thread: a lack of awareness that leads to regret.
At FICO, we strive to shift this narrative. Our goal is to help people advance from saying, “I wish I knew,” to confidently declaring, “I’m so glad I know.”
Bridging the Financial Literacy Gap
74% of Americans believe that their financial situation could improve with better resources and education, as shown in FICO’s recent survey. To address this need, FICO is committed to financial inclusion by fostering accessible, actionable credit education that enhances the broader credit ecosystem. When people understand how credit scores work and what impacts their FICO® Scores, they can understand how their FICO® Scores can unlock opportunities to secure credit at better rates. This can translate into significant savings, including lower interest rates on loans, which can have a profound impact on household budgets. For example, a higher FICO Score could mean an auto loan with a lower interest rate, potentially saving hundreds of dollars per month.
The Power of Knowing Your FICO® Score
Like tracking steps with a fitness app encourages healthier habits, I’ve learned through experience that checking your FICO® Score promotes better credit engagement. People who have access to their credit score are more likely to pay bills on time and make efforts to improve their credit knowledge and engagement. Banks that share FICO Scores with customers—and hundreds do—report higher customer engagement. Notifications about credit score changes are opened at significantly higher rates than other communications, demonstrating the value consumers place on this information.
Since 90% of top lenders in the U.S. use FICO® Scores to evaluate creditworthiness, understanding your credit score isn’t just beneficial—it’s essential. It’s the key to understanding how banks assess your eligibility for loans and credit cards.
Starting Early: Credit Education for Students
Credit education is important for even the youngest members of our society. High school students, even those under 18 who may not yet have a credit score, benefit from learning the fundamentals of credit early. Waiting until adulthood to introduce these concepts can be overwhelming and potentially too late.
That’s why FICO developed the FICO® Score A Better Future Fundamentals program, a free curriculum designed to equip educators with the tools they need to teach credit basics. This program includes teacher toolkits, presentations, worksheets, and more, all available for free download. Whether incorporated into economics classes or used in extracurricular settings like finance clubs, this program ensures that young people gain essential financial knowledge.
In addition to these resources, FICO hosts workshops in communities to directly engage with students. In fact, in 2024, more than 1,500 students participated in these workshops across the country. These sessions touch on earning, spending, saving, and borrowing money, helping students transition from “I wish I knew” to “I’m so glad I know.” The feedback we receive underscores the value of early credit education in setting young people up for financial success.
Supporting Adults in Their Financial Journeys
In my experience, it’s not just students who need credit education. Many adults missed out on financial education entirely and need help building their credit understanding, especially after past mistakes, or have limited resources, including the unbanked or underserved communities. FICO® Score A Better Future financial literacy program offers access to free educational content and resources to empower people to take control of their future. We also encourage participants to partner with nonprofit credit counseling organizations and take advantage of free FICO® Score access at myfico.com/free.
A Call to Action: Making Financial Literacy a Priority
With 79% of Americans agreeing that financial literacy should be a top educational priority, the case for widespread credit education is clear; by providing accessible tools, workshops, and resources, FICO aims to empower people with the knowledge they need to navigate the financial system.
Understanding your FICO® Scores and being knowledgeable about credit goes beyond numbers — it’s about opening doors, reducing stress, and empowering brighter financial futures. Together, we can move more people into the “I’m so glad I knew” space, where financial literacy translates to real-world savings, opportunities, and peace of mind.
How FICO Advances Financial Literacy
Learn about FICO’s credit empowerment programs, FICO® Score A Better Future, and Score a Better Future Fundamentals
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