Is Trump's Financial Literacy Plan a Gift to Wall Street?

The White House declared April 2025 National Financial Literacy Month with a flourish, promising to arm every American with the tools to chase the ever-elusive American Dream. On the surface, it’s a noble call, a rallying cry for families to seize control of their economic futures. Who could argue with empowering people through knowledge, especially in a world where financial missteps can spiral into lifelong debt?

Yet beneath the polished rhetoric lies a stark contradiction. This administration, led by President Trump, touts financial independence while steering policies that erode the very foundation it claims to build. The pledge to bolster financial literacy rings hollow when paired with tax cuts for the wealthy, deregulation that favors Wall Street, and a digital asset agenda that prioritizes corporate innovation over consumer protection. It’s a bait-and-switch dressed up as populism.

For those new to the political fray, this isn’t just about numbers on a page. It’s about real people—parents juggling bills, students drowning in loans, seniors stretching Social Security checks—who deserve more than a glossy pamphlet on budgeting. The gap between the administration’s words and actions reveals a deeper truth: this isn’t empowerment; it’s a distraction.

Let’s unpack the evidence. The White House boasts of supporting blockchain and digital assets, claiming it’s a gateway to prosperity for all. Research from February 2025 backs the idea that financial literacy can steer young investors toward smarter choices, especially in the Wild West of fintech. Students who grasp these concepts avoid scams and build wealth over time. So far, so good.

But the administration’s January 2025 executive orders tell a different story. By scrapping SEC rules and fast-tracking digital asset policies, they’ve handed banks and tech giants a golden ticket to dominate this space. The President’s Working Group on Digital Assets might promise consumer protection, but its ban on Central Bank Digital Currencies shuts down a public option that could level the playing field. Instead, we’re left with a system where the well-connected thrive, and the average family gets a crash course in crypto hype without a safety net.

Then there’s the tax agenda. Eliminating taxes on tips and overtime sounds like a win for workers, but Project 2025’s broader plan exposes the catch. Consolidating tax brackets and pushing a consumption tax will hit middle-income households hardest, jacking up costs for groceries and gas. Economists have warned since the Bush era that such regressive policies widen the wealth gap. History agrees—Clinton’s tax hikes on the rich fueled growth; Bush’s cuts fueled inequality. Trump’s team knows this, yet they press on, betting most won’t notice until the bills pile up.

Supporters of this approach argue it’s about unleashing innovation, freeing markets from government shackles. They’re not entirely wrong—deregulation can spark growth. But when the gains cluster at the top, as they have for decades, that argument feels like a tired excuse. Financial literacy won’t save a family when the system’s rigged to favor the few.

The Financial Literacy and Education Commission, chaired by Treasury Secretary, claims to bridge these gaps. Studies from Vermont to the SPARK Institute show education can boost credit scores and savings. That’s real progress. Yet without addressing structural inequities—like the retirement literacy crisis where Boomers score a dismal 31% on planning tests—this commission risks being a Band-Aid on a broken leg.

The administration’s vision of a ‘new Golden Age’ hinges on a revived American Dream. It’s a seductive pitch—picture a nation of savvy investors, unshackled from bureaucracy, building wealth from the ground up. But the reality is grimmer. With 12,000 Baby Boomers retiring daily, many lack the know-how to stretch fixed incomes. Younger generations, skeptical of Social Security, lean on 401(k)s they barely understand. Financial advisors help, but only for those who can afford them.

This isn’t a failure of individual grit; it’s a failure of policy. The White House urges families to visit the Treasury’s website for resources, as if a PDF can offset decades of wage stagnation and tax breaks for billionaires. True empowerment demands more—think Obama-era tax credits that lifted working families, or robust public education like the Smith-Lever Act’s legacy. Instead, we get deregulation and a pat on the back.

The stakes are high. Financial literacy matters, no question. Historical data from Lusardi and Mitchell prove it drives retirement savings and household wealth. But knowledge alone can’t outrun a system that keeps rewriting the rules to favor the powerful. This administration’s plan doesn’t revive the dream—it buries it under a mountain of fine print.