The Rise of Financial Literacy Education in American High Schools

The Rise of Financial Literacy Education in American High Schools

State legislation aims to equip high school students with essential personal finance skills

For years, high school students have questioned the relevance of certain math classes in their daily lives. However, a recent survey conducted by Forbes revealed that less than 12 percent of respondents reported using lessons from algebra, trigonometry, or calculus in their everyday activities. In contrast, personal finance skills have become increasingly crucial for individuals making important financial decisions. Unfortunately, statistics indicate that many Americans lack the financial literacy necessary to navigate their personal finances effectively. However, there is hope for future generations as an increasing number of states are implementing legislation to improve the financial literacy of high school students.

The Growing Importance of Financial Literacy

Despite the lack of financial literacy among Americans, the importance of personal finance skills cannot be overstated. More than one-third of American adults have more credit card debt than emergency savings, 68 percent doubt their ability to cover one month of living expenses without their primary source of income, and 25 percent lack a trusted source of financial guidance. These alarming statistics highlight the need for improved financial literacy education.

State Legislation to the Rescue

To address the lack of financial literacy, 25 states have passed bills requiring personal finance courses for high school students. This marks a significant increase from just eight states in the past two-and-a-half years. The growth in financial literacy education has been exponential, with a projected 229 percent increase in the number of high school students enrolled in schools offering stand-alone personal finance courses before graduation.

See also  Barclays Appoints Na Wei as Global Head of Leveraged Finance

The Pandemic’s Impact on Financial Literacy Education

Financial experts attribute the sudden interest in financial literacy curricula to the COVID-19 pandemic. The pandemic exposed the financial fragility of individuals and businesses across the country, serving as a wake-up call for the need to improve financial literacy. The crisis highlighted the importance of understanding personal finances and making informed decisions, leading to a renewed focus on financial education in schools.

The Benefits of Teaching Personal Finance in Schools

High school students may not have the same level of financial responsibility as adults, but they are still in a position to make significant financial decisions. By taking personal finance courses that cover topics such as earning income, spending, saving, investing, and managing credit, students are more likely to make informed borrowing decisions. Government reports also indicate that financial education helps young people better manage cash flow and pay bills on time, leading to improved financial well-being.

The Role of Schools in Financial Literacy Education

Experts argue that schools are the most logical and likely place for teenagers to learn about personal finance. By integrating personal finance courses into the curriculum, schools can provide a structured and comprehensive education on financial literacy. These courses can replace elective subjects of equal length, ensuring that students receive a well-rounded education that includes essential personal finance skills. Additionally, relying on parents to teach financial literacy is not always feasible, as not all adults possess a strong sense of financial literacy, and personal finance remains a taboo topic in many households.


The rise of financial literacy education in American high schools is a promising development in equipping future generations with essential personal finance skills. State legislation has played a vital role in making personal finance courses a requirement for high school students. The COVID-19 pandemic has further highlighted the need for financial literacy, leading to a renewed focus on teaching these skills in schools. By providing students with the knowledge and tools to make informed financial decisions, schools are empowering them to navigate their financial futures successfully. As financial literacy education continues to expand, there is hope that more Americans will be equipped to handle their personal finances and build a secure financial future.

See also  Taking a Financial Education Class in High School Pays Off: The Lifetime Benefits of Personal Finance Education