Products & Services April 1, 2025

SPARK Institute Announces Financial Literacy Initiatives

In a recent study, “Financial and Retirement Literacy Among Students and Recent Hires,” conducted with Corporate Insight Inc., SPARK found that younger generations have low literacy aptitude rates.

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The SPARK Institute announced several financial literacy initiatives it hopes will help close the financial education gap and is encouraging financial services leaders, educators and policymakers to leverage financial literacy month as a time to advocate for widespread financial education. 

SPARK [the Society of Professional Asset Managers and Recordkeepers] is working closely with other organizations to support the inclusion of financial literacy in K-12 curriculum nationwide.

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“Our goal is to level the playing field by bringing structured, high-quality financial education into schools,” said Snezana Zlatar, co-chair of SPARK’s financial literacy committee, in a statement. “Financial literacy should not be a privilege passed down through wealth—it should be a fundamental part of every student’s education.”

In a recent study, “Financial and Retirement Literacy Among Students and Recent Hires,” conducted with Corporate Insight Inc., SPARK found that younger generations have low literacy aptitude rates. For example, most respondents did not demonstrate a basic understanding of inflation and did not correctly answer a question about the difference between a stock and a mutual fund.

Many of those surveyed also could not identify a 401(k) as a type of employer-sponsored retirement plan, including 42% of recent hires. Many also showed a lack of urgency to save for retirement, as, on average, respondents thought that 30 was the proper age to start saving.

The study also found that wealthier families tend to teach their children financial skills at home, whereas lower-income families frequently lack the confidence or resources to do the same. SPARK surveyed nearly 1,600 recent hires (ages 19 to 35), college students (ages 18 to 23) and high school students (ages 14 to 18) in the study.

SPARK’s financial literacy initiatives include:

  • Expanding financial education in schools by advocating for state-level legislation to mandate personal finance courses in grade schools and high schools;
  • Transforming learning models by collaborating with others to shift from passive financial literacy instruction to hands-on training that “builds confidence and intuition”;
  • Increasing workplace and community engagement by working with employers, policymakers and financial institutions to expand literacy programs beyond the classroom; and
  • Addressing misinformation by raising awareness about the risks of financial misinformation on social media and creating accessible, trustworthy resources for young people.
Data & Research April 1, 2025

CFP Board Survey Examines Implications of TCJA Expiration

Nearly 9 in 10 CFP professionals say their clients’ financial objectives are at-risk due to the pending expiration of the Tax Cuts and Jobs Act of 2017.

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A recent survey of certified financial planners found that 52% of respondents reported negative impacts of consumer access to professional guidance from the elimination of tax deductions for financial advice under TCJA.

The 2025 CFP Professionals Taxes Survey also found that 95% of CFPs rate tax considerations as critical to financial planning, with nearly 9 in 10 say their clients’ financial objectives are at-risk due to the pending expiration of the Tax Cuts and Jobs Act of 2017.

A review of the TCJA could highlight opportunities to restore tax benefits related to investment advice and advisory fees, potentially making professional advice more accessible to middle-class Americans, says the CFP Board. Half of respondents believe restoring these tax incentives would help more Americans afford professional financial advice; those surveyed say the most effective methods to expand middle-class access to financial planning are an above the line tax deduction and a tax credit.

Key provisions of the TCJA will expire on December 31, 2025, including reduced marginal tax rates, higher standard deduction and elimination of personal exemption, increased child tax credit, state and local tax deduction (SALT) cap and doubled estate tax exemption.

Retirement income and legacy planning were the areas CFPs said were most vulnerable to upcoming tax changes, cited by more than half of the 312 survey respondents. To improve tax efficiency before the TCJA provisions expire, CFPs report using various strategies including strategic timing of capital gains (78%); employing tax-efficient retirement income strategies (75%); and maximizing tax-deferred accounts. 

Clients’ top concerns for 2025 are retirement account taxation (61%), current income tax exposure (59%) and the impact of potential tax rate changes (55%). In light of those concerns, CFP professionals’ top 2025 tax-related recommendations to clients, according to the survey, are: Roth conversions (64%), increased retirement plan contributions (64%) and tax-loss harvesting (61%).

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