Too many Tennesseans are struggling. Businesses can step up by teaching financial literacy

Business as usual won’t address the financial challenges facing Tennesseans. Collaboration is key.

In terms of economic growth, Nashville is growing incredibly wealthy. Veritable gallons of ink have been expended touting the fact that our city is one of the nation’s leading metro areas when it comes to a post-pandemic recovery – and it should be. We should be proud of this accomplishment.

That said, we can’t allow this victory to cloud our vision when it comes to confronting the reality of the hardships felt by folks across our city and state each day that prevent them likewise growing in wealth.

Owning a home is one of the greatest, time-tested ways for families to build wealth. However, homeownership in Tennessee has decreased by more than 5% over the course of the last 24 years – one of the most drastic declines nationwide.

Debt load can harm credit scores and make it harder to pursue the American Dream

Further compounding the issue is debt. According to a recent study from ThinkTennessee, Tennesseans hold more than $50,000 in household debt. While this is slightly lower than the national average, more than one out of every four young adults in Tennessee have debt in collection, higher than the national average of 20%. Among Tennessee’s communities of color, the issue is even worse, with 38% in debt delinquency compared to 25% nationally according to the Urban Institute.

Debt in collection means missed payments and damaged credit scores, making it harder and more expensive to borrow money for crucial things such as a car, a house, or education, potentially trapping people in an inescapable cycle of debt.

Underscoring all these issues is the fact that our state ranks almost dead-last nationally for understanding the core concepts of money management (48th) and in the lower third for overall financial literacy (38th), making it one of the least financially literate states, according to WalletHub.

More: Tennessee among top U.S. states with people in financial distress, study says. Here’s what that means.

Business as usual won’t address the financial challenges facing Tennesseans. Collaboration is key. United Community is committed to working hand-in-hand with community groups to ensure every Tennessean has access to the financial education and tools they need to thrive. This starts with equipping them with the knowledge to manage money effectively, a mission we take very seriously.

How gamification can help kids become more financially literate

To help head off issues at an early age, United Community has partnered with Greenlight, a free service that uses gamification to make financial literacy fun for kids. This innovative approach equips young Tennesseans with essential money management skills and teaches valuable lessons about saving, spending, and earning through real-world applications like chores and allowances.

Here in Middle Tennessee, our dedication goes beyond just offering financial services and education; our bankers provide financial support and volunteer with organizations such as Habitat for Humanity, which builds strength, stability and self-reliance in partnership with families in need of decent and affordable housing. In addition to helping build Habitat homes, our bankers help provide the financial education that is part of the necessary foundation for success for new homeowners.

We are committed to creating better opportunities for everyone to achieve their financial goals. Financial education is a huge piece of that equation. But our efforts alone aren’t enough.

We need others to join us in this mission to elevate financial education literacy across Tennessee. Together, let’s make financial education a cornerstone of our state’s prosperity. The stakes have never been higher, but with collective effort and commitment, we can build a brighter, more financially secure future for all Tennesseans.

Kelley Kee is the Tennessee state president for United Community and has more than 30 years of banking experience in the greater Nashville area.