Americans are rightfully concerned about whether Johnny can read. But financial illiteracy can be damaging as well. And the problem deserves attention.

If the survey on personal finance and economics conducted on behalf of the JumpStart Coalition had been a test, high school seniors, as a whole, would have flunked.

Less than half correctly answered the questions, according to results released last week by the coalition and the Federal Reserve.

Considering the gaps in financial knowledge among adults, the students' misconceptions probably shouldn't be surprising. But the situation doesn't bode well for the future and the ability to end problems with poor savings habits, runaway credit-card debt, loan defaults and mortgage foreclosures.

Students frequently question the relevancy of their high school classes, asking when they are going to use algebra or geography lessons. That's typical, youthful short-range thinking.

But there should be little doubt in their minds about the need to understand financial issues, such as the best return on savings investments and liability for stolen credit cards.

Upon graduation, these seniors will be entering the working world, going off to college or both. They will be besieged with credit card offers, signing up for education loans and, in many cases, living away from home for the first time.

Without basic, personal finance knowledge, they can get into trouble quickly. Financial decisions made now can have short- and long-range implications.

Only 48 percent correctly answered that a person who pays only the minimum amount on monthly credit card balances will pay more in finance charges than those who pay their balances in full.

Forty percent wrongly thought earnings from savings interest can't be taxed; only 27 percent correctly said it could be taxed if your income is high enough.

The need for a well-grounded understanding of financial matters has become increasingly important as more decisions are being left in the hands of individuals - from health insurance to 401(k) retirement investments.

If you are wondering how the subprime mortgage crisis happened, consider that only 36 percent of the students correctly answered that a fixed-rate mortgage is protection against a sudden rise in inflation.

Schools need to do a better job educating students about personal finance matters.

As noted by Fed Chairman Ben Bernanke, financial literacy is not just important for the individual; it is "of vital importance" to the nation's economy.