Stanford Leadership Forum 2026: Conversation with Ken Griffin

The session, "The Business Case for Financial Literacy from Classroom to Capital Markets," highlights the critical importance of financial literacy, arguing it is not merely an educational issue but an economic imperative that drives market functionality and overall economic health. The discussion features insights from Dr. Lusardi, Tim Ranzetta of Next Gen Personal Finance, Gerry Walsh, formerly of FINRA Investor Education Foundation, and Natalia Guzeva from the World Economic Forum. Dr. Lusardi, who teaches a popular personal finance course at Stanford, emphasizes the high demand for such education, noting 100 students on a waiting list for her class. This demand underscores a broader recognition, both in the US and globally, that financial literacy is a "must-have." Tim Ranzetta, whose nonprofit, Next Gen Personal Finance, aims to ensure every American student receives personal finance education, presents a compelling business case. Research suggests a lifetime benefit of approximately $100,000 per student from a personal finance class. With 3.5 to 4 million high school graduates annually, this translates to a staggering $400 billion in lifetime benefits nationwide. The costs, he argues, are negligible, as free, high-quality curricula and teacher training are available. Currently, 11 states mandate personal finance as a graduation requirement, with 30 states requiring a course be taught, and the trend is growing. Ranzetta highlights that existing teachers are often upskilled, and many are eager to learn alongside their students. Gerry Walsh corroborates this with data from the FINRA Investor Education Foundation's National Financial Capability Study. This study reveals that individuals with higher financial knowledge are more likely to manage their finances effectively, plan for the future, and experience less financial stress, regardless of income. She stresses the importance of workplace financial wellness programs, particularly for lower-wage workers, as financial crises can lead to job loss due to inability to attend work. The data consistently shows better financial outcomes for those exposed to financial education. Natalia Guzeva adds three key numbers to the discussion. First, individuals make an estimated 35,000 decisions daily, many with financial implications, yet only one in three people globally are financially literate. The compounding effect of these decisions, given the low literacy rate, is significant. Second, financial stress costs US employers an estimated $5 billion per week in lost productivity. Third, an $83 trillion "great wealth transfer" is anticipated from baby boomers to Gen X and millennials, with a significant portion inherited by women. Without financial literacy, this massive transfer could lead to suboptimal capital allocation and risk management, impacting society broadly. Global institutions, including the World Economic Forum, now view financial literacy as a pillar of economic resilience. Guzeva notes that a global council on financial education, co-chaired by Dr. Lusardi and with Walsh as a member, meets with central bankers to discuss financial literacy's role in monetary policy transmission. It is also seen as crucial for global competitiveness, particularly in regions like the European Union, to transform savers into investors and boost local economies. Regarding the impact on capital markets, Ranzetta emphasizes that financial education teaches investing strategies that empower students to become investors, regardless of income. With commission-free trading and fractional shares, markets are more accessible than ever, but access without education can lead to "mixed at best" results. He advocates for guaranteed personal finance education, noting that in states without such requirements, low-income and urban communities are disproportionately left behind. He also highlights the danger of young people relying on social media "finfluencers" and "get-rich-quick" schemes, especially given the blurring lines between investing and gambling, as seen with prediction markets. A concerning statistic reveals that 25% of young people view gambling as a form of investing, and 95% lose all their money in online gambling. Walsh expresses both worry and hope for young investors. While investor participation among underrepresented groups, women, people of color, and younger individuals increased up to 2021, there was a decline in 2023-2025, largely affecting 18-34-year-olds, people of color, and men. Women's participation, however, increased. She is concerned about the reliance on finfluencers and social media for investment information, noting that those who follow such advice tend to be younger, male, and people of color. While these individuals may consult more sources, the quality of those sources is critical. Walsh stresses the importance of tools like FINRA's BrokerCheck, which allows individuals to verify the registration and history of financial professionals. She also points out a "risk paradox" among young investors: while few are willing to take substantial risk, nearly two-thirds of 18-34-year-old investors believe they *need* to take excessive risk to achieve financial goals, which is deeply concerning. Technology is profoundly reshaping global financial participation. Guzeva likens its impact to Uber and Lyft transforming transportation, fundamentally changing how individuals interact with the financial system. This includes easier access to financial applications, the rise of finfluencers, and the growing preference for AI chatbots and robo-advisors over traditional financial advisors. She uses the example of cryptocurrency to illustrate how visibility, familiarity, and accessibility drive engagement, with many perceiving crypto as easier to understand and access than traditional stocks, bonds, and ETFs, regardless of actual complexity. Technology, while posing risks, also offers an opportunity to engage young investors and make financial concepts more accessible and familiar at scale. Dr. Lusardi highlights the alarming rise of sports betting among young people, particularly young men, and notes that a closed-door discussion is being organized to address this issue. Regarding barriers to universal financial education, Ranzetta identifies inertia (status quo bias) and local control of education as primary hurdles. However, he notes significant progress, with 20 states passing laws requiring financial education due to advocacy campaigns. The issue is largely non-partisan, with 80-85% of people supporting required personal finance education. The strongest motivator for this support is regret based on personal financial experiences. The economic cost of lacking financial literacy is substantial, estimated at $100,000 per person in lifetime benefits, largely due to improved credit scores and reduced borrowing costs. He shares inspiring examples of high school students engaging with Roth IRAs, demonstrating that financial education can happen effectively. Walsh reiterates the significant economic consequences of financial illiteracy, particularly concerning fraud. The FINRA Investor Education Foundation's mission is to build financial stability for market participation. While regulators strive to make markets safe, fraudsters also leverage technology. A recent study revealed that 50% of investors, and nearly 67% of 18-34-year-olds, could not identify red flags of fraud in a scenario promising a 25% return with no risk. Newer and younger investors are more susceptible. Fraud is escalating, draining billions from the economy, and is often underreported. FINRA has implemented measures like requiring a "trusted contact" (now "emergency contact") on accounts to help intervene in suspected fraud cases, as money lost to fraud, often through instantaneous wire transfers, is typically unrecoverable. The panel concludes by emphasizing the decreasing age at which people invest and the rise of early life investing (e.g., 529 plans), further underscoring the need for early financial literacy. Natalia Guzeva notes that 70% of Gen Z are confident in their financial goals, with 30% starting to learn about investing before entering the workforce—twice as many as millennials. She expresses optimism that if the "learning part" is done right, positive outcomes will follow, as many Gen Z financial goals are medium to long-term. Her closing thought is to destigmatize conversations about money, both personally and within organizations. Tim Ranzetta highlights the ripple effect of financial education: students learn, parents become engaged, and teachers improve their own financial lives. He encourages attendees to advocate for personal finance courses in their local schools and states. Gerry Walsh reinforces the positive trends, noting that financial knowledge is leveling out and the gap among young women is closing. She encourages everyone to become financial literacy ambassadors, advocating for workplace wellness programs, community involvement, and financial contributions to support rigorous research and impactful programs. Dr. Lusardi concludes by sharing a striking statistic: people spend an average of six hours per week at work dealing with personal finance issues. This highlights that financial education is an investment for firms, as it can reduce productivity losses. She recounts her experience in Italy, where financial literacy was mandated in schools, and the profound impact of teaching personal finance, receiving thank-you notes from students years later who credit the course with changing their lives and empowering them to become financial advisors to their families. This, she asserts, is a very high return on education. The session concludes with questions from the audience, addressing topics such as meme stocks, the historical lack of financial education, and appropriate workplace training. The panelists emphasize teaching meme stocks within a spectrum of risk, from speculative to long-term investing, rather than simply forbidding them. They acknowledge that past financial education was often elective and not broadly inclusive, but national strategies and mandates have brought significant change. For workplace training, resources like Addition Wealth, the World Economic Forum's resource hub, and local United Ways are suggested. Regarding the "get rich quick" mentality among young people, the panelists acknowledge it often stems from desperation and a feeling of limited opportunities. They stress the importance of slowing down decision-making, grounding individuals in sound financial concepts like diversification and long-term views, and avoiding victim-blaming. They also highlight the crucial role of open conversations about money within social networks to counter misinformation.