Valley nonprofit teaches financial literacy for young adults

RIO GRANDE VALLEY, Texas (ValleyCentral) — Financial literacy rates in America have been dropping consistently with the Millennial and Gen-Z populations scoring the lowest.

April is Financial Literacy Month, and one Valley nonprofit is working to help younger adults better understand their finances.

Felida Villarreal, CEO of the Valley Initiative for Development and Advancement said her organization wants to help people better understand the financial tools and resources available to them.

The group offers monthly financial literacy workshops year-round, not just in April.

“Students who are currently enrolled in college also have the opportunity to receive that financial expert advice from a financial professional,” Villarreal said.

Workshop subjects range from budgeting and retirement planning to advice on best practices for how participants can buy their first car or home.

Villarreal said promoting a better understanding of finances at an early age is crucial. In Texas, literacy courses are required in school but can be integrated with other subjects.

“They have the opportunity to obtain competitive employment opportunities, and with that comes bigger responsibilities," Villarreal said, "Because they are now managing their personal finances, but also the finances that impact their family.”

Villarreal said she saw financial education as a collaborative approach. From education to working with different agencies and financial institutions her organizations partners with. Those efforts can pay dividends in the short term, while also instilling long term financial planning.

“We continue to use financial literacy as a tool to breaking barriers, and breaking cycles of poverty,” Villarreal said.

Data from the World Economic Forum Personal Finance Index Survey showed that Americans score very low when it comes to understanding financial risk. The latest numbers revealed Gen-Z scoring just 31% when it comes to risk comprehension.

“Often times we see recent graduates that have just secured a high paying job and rather than really learn to budget or plan for their future," Villarreal said. "We see them make that common mistake of going out and purchasing a significant vehicle. And that translates into a significant amount of debt."