Why Financial Literacy Is Key To Protecting Your Legacy

Cody Barbo, cofounder of Trust & Will. Our mission is to make estate planning inclusive, accessible and affordable for all.

Estate planning and financial literacy should go hand in hand. Yet, in the U.S., we have a fundamental problem: Financial education is largely missing from our school systems.

We don’t teach our kids how to manage money, balance a budget or understand the importance of credit scores—let alone estate planning. And the result? A financially vulnerable population that’s unprepared to protect what matters most.

Why Financial Literacy Is The Foundation Of Estate Planning

Financial literacy isn’t just about saving and investing—it’s about protecting the wealth you build. Most people don’t realize that estate planning is the final, crucial step in financial security. You can spend decades building assets, growing your investments and providing for your family, but without an estate plan, everything you’ve worked for could be subject to probate delays, unnecessary taxes and potential disputes.

The numbers tell the story: Roughly 60% of Americans don’t have a will. And with $84 trillion in wealth set to transfer between generations over the next 20 years, the stakes are high. If we don’t increase financial literacy around estate planning, we’re setting up millions of families for unnecessary hardship.

How We Got Here: The Gap In Financial Education

I never took a single class in high school or college that taught me about estate planning, insurance or taxes. Instead, I had to figure it out on my own—reading The Wall Street Journal, watching CNBC late at night in my college dorm and self-educating on personal finance. But most people don’t have the time or inclination to go that deep. They need estate planning to be accessible, approachable and integrated into a broader financial education system.

Schools should be teaching financial literacy from kindergarten through high school, with dedicated coursework on budgeting, credit, taxes, and yes—estate planning. Imagine if, by the time someone reached adulthood, they already understood the basics of protecting their assets and planning for the future. It would change the financial trajectory of countless families.

Instead, the majority of Americans feel anxious and uncertain about their finances and end-of-life planning.

Estate Planning Isn’t Just For The Wealthy

A major misconception is that estate planning is only for the wealthy. That’s not true. If you have a bank account, a home, a car or children—you need an estate plan. And yet, because estate planning is often framed as something complicated or reserved for the wealthy, too many people avoid it altogether.

Luckily, digital estate planning is helping to change that perception. Americans now have access to user-friendly platforms that allow them to create an estate plan (full disclosure: Trust & Will offers this solution). Whether you’re a young professional just starting out or a retiree wanting to secure your legacy, there’s a simple, affordable path forward.

The private sector can help fill educational gaps, but it will only reach certain segments of the population. There is a deep need for systemic change. Americans need access to financial and life planning education and empowerment, and they need it starting at a young age.

The Role Of AI And Technology In Financial Literacy

We’re entering a new era where AI will play a crucial role in improving financial literacy and estate planning. Imagine a world where AI proactively suggests updates to your estate plan based on life changes—marriage, a new child, a new job or a home purchase. AI can remove the guesswork, making estate planning more intuitive and automatic, rather than something people only think about when it’s too late.

My company is currently exploring ways to integrate AI into estate planning, ensuring people get real-time insights tailored to their financial situation. The goal isn’t to replace the human element but to enhance it—giving families the tools they need to make smarter, informed decisions.

Practical Steps For Individuals And Companies

For individuals, the best first step is simply starting. Estate planning can feel overwhelming, but it doesn’t have to be. Begin by listing your key assets—home, savings, insurance—and decide who you trust to manage them if something happens. Then, explore an online platform to create a basic will or trust in under an hour. If you already have a plan, review it every few years or after major life events—marriage, children, new home—to make sure it still reflects your wishes.

For companies, supporting employee financial wellness goes beyond 401(k)s. Offering estate planning as a benefit shows long-term care. Start by integrating it into your onboarding process, and host regular workshops or webinars that demystify estate planning. Partner with platforms that provide easy, affordable access and educational resources. By doing this, you can not only help employees protect their families but also help reduce stress that impacts productivity and retention.

Estate planning isn’t just legal paperwork—it’s peace of mind. And when both individuals and employers take simple, proactive steps, everyone can benefit.

Looking Ahead: A More Financially Prepared Future

Estate planning isn’t just about transferring assets—it’s about preserving your legacy, protecting your family and ensuring your wishes are honored. As we push forward, financial literacy must become a national priority.

I firmly believe that in the next decade, we’ll see financial education improve, estate planning become better integrated into overall financial health strategy, and AI-driven solutions make the process accessible and easier than ever. The companies and individuals who embrace this shift will be the ones who secure not just their wealth but also their impact for generations to come.

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