Financial Education Gains Momentum in U.S. High Schools
Pennsylvania Becomes the 25th State to Guarantee Personal Finance Courses for High School Students
High schools across the United States are increasingly prioritizing financial education, with more than half of high school students set to take a personal finance course before graduation. This week, Pennsylvania joined 24 other states in mandating a personal finance course for high school students, ensuring that students have access to crucial financial literacy education. The growing momentum for financial education in schools reflects the recognition of the importance of equipping students with the necessary skills to make informed financial decisions throughout their lives.
Pennsylvania’s New Legislation:
Pennsylvania Governor, Josh Shapiro, signed an omnibus bill into law on Wednesday, making it the 25th state to guarantee a personal finance course for high school students. Starting in the fall of 2026, Pennsylvania schools will be required to provide a mandatory course in personal financial literacy for students in grades 9 through 12. This legislation ensures that more than half of high school students in the United States, 53% to be exact, will have guaranteed access to a standalone personal finance course.
National Progress:
The push for financial education in schools has gained significant traction this year, with eight states adopting policies in 2023 that require students to take a personal finance course before graduation. Wisconsin recently joined the ranks, with Governor Tony Evers signing a bill that mandates high school students to complete a personal finance literacy course starting with the class of 2028. This commitment to financial literacy aims to equip students with the tools and skills necessary to make sound financial decisions and prepare them for their future.
Top-Performing States:
According to the Center for Financial Literacy at Champlain College, seven states, including Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah, and Virginia, earned an “A” grade for requiring high school graduates in the class of 2023 to have taken a personal finance course before graduation. These states serve as examples of the positive impact that financial education can have on students’ financial well-being.
Future Outlook:
By 2028, as new laws and policy changes are fully implemented, it is projected that 25 states will earn an “A” grade for their commitment to financial literacy education, according to Pelletier of the Center for Financial Literacy. The rapid passing of laws and changing regulations demonstrates a significant shift towards prioritizing financial education in schools.
The Importance of Personal Finance Courses:
High school personal finance courses cover a wide range of topics, including earning income, spending and savings, credit and credit scores, investing, and managing risk. These courses aim to provide students with real-world lessons that are essential for their financial well-being throughout their lives. By equipping students with financial literacy skills, schools are empowering them to make informed decisions and navigate the complexities of personal finance.
Conclusion:
The increasing number of states mandating personal finance courses in high schools highlights the growing recognition of the importance of financial education. With more than half of U.S. high school students soon to have access to standalone personal finance courses, the future looks promising for equipping the next generation with the necessary skills to make sound financial decisions. As financial literacy becomes a standard part of high school education, students will be better prepared to navigate the complexities of personal finance and secure their financial futures.