Treasury Secretary Bessent Pushes Financial Literacy as Americans Struggle With Rising Costs
Treasury Secretary Scott Bessent is making financial literacy a centerpiece of his tenure, warning Americans against lottery tickets, buy-now-pay-later loans, and get-rich-quick schemes. His push comes as Trump's approval rating on the economy dropped to 30% in April and the national debt surpassed $39 trillion. Critics say the problem is not a lack of knowledge but a lack of spare income.
Treasury Secretary Scott Bessent is pushing financial literacy as a top priority, warning Americans to avoid easy-money traps and focus on long-term investing.
"There are a lot of young people, mostly young men, going to blue-collar construction jobs, playing the lottery. It drives me crazy," Bessent told the Associated Press. "The best thing you can do is not play the lottery. Invest and watch it grow."
Bessent, 63, relaunched Financial Literacy Month at the Treasury Department after taking office. He has held roundtables with community bankers, retirees, and schoolchildren to discuss budgeting, saving, and debt management.
His push comes at a difficult moment. Trump's approval rating on the economy dropped from 38% in March to 30% in April, according to AP-NORC poll data. Americans are dealing with higher costs for housing, groceries, energy, and everyday items. The national debt surpassed $39 trillion in March.
Critics say the problem is not that Americans lack financial knowledge. "You cannot preach penny-pinching while making it harder for Americans to pay their grocery, utility and healthcare bills," said Emily DiVito, senior adviser for economic policy at the Groundwork Collaborative.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said the Trump administration has "a problematic record on cutting taxes without offsets and growing spending." She added: "It's hard to disagree with the fact that we need more financial literacy in this country. The bigger picture, of course, is that we should also probably give a financial literacy class to our lawmakers."
Bessent has also promoted "Trump Accounts," a program that gives $1,000 to babies born during the Trump administration. The money is invested in the stock market and can be accessed at age 18.
Bessent grew up in rural South Carolina and has spoken about his father losing the family's wealth by taking on too much debt. He said that experience shaped his views on financial discipline.
The 401(k) contribution limit for 2026 has increased to $24,500, up from $23,500 in 2025. IRA limits rose to $7,500.
