Financial education needs to take place all the way from grade school through high school.

Grade schools are doing it right already. They teach kids about money and how to shop and make change, which is age appropriate. After fifth grade, however, personal finance is forgotten. Kids turn to algebra and geometry and never get back to money. That's a problem.

I've worked with 20-somethings in my area who are high-school graduates, and I was shocked at how little they knew about basic finances. They had credit cards but no idea how they worked. They didn't know about savings accounts, bank accounts or fees.

Many of these young adults have a lot of credit-card debt, but they don't understand that making just the minimum payment barely pays off the current charges, leaving the balance to keep growing. They don't know what a 401(k) is, and don't understand that taking advantage of a company match is basically like getting free money. They don't recognize that they need to start saving now.

My children's high school asked me to look over some of the books for a financial-literacy class. They were old-fashioned and not engaging. When the books talked about investments, there was no mention of ETFs, and for many young people, that may be one of their first investments.

The class did address debt but not student loans, which may be the next mortgage meltdown. It is really important for teens to understand student debt, how it works, and how it can be paid off—and to understand these things before they go to college. If they really understood everything up front, they might choose a different school or be willing to compromise on their choice.

For parents—the topic of money is almost like sex—they never want to talk about it with their children. They may be uneducated themselves, or they may not want their kids knowing how much they make. But parents need to teach their children from a young age how to handle money.

Personal finance, like any skill or language, is easier to learn and internalize the younger a child learns it.

Ms. Minnium is founder and principal at Concierge Financial Planning in Scotch Plains, N.J. She can be reached at