All State Financial Literacy Mandates Fall Short—Failing to Meet Minimum Standards or Prepare Students for Real-World Financial Decisions

Financial education has never been needed more in the United States. According to the American Public Education Foundation, only 57% of Americans are financially literate, ranking the country 14th in the world on that metric; and four out of five U.S. adults say they were never given an opportunity to learn about personal finance.(1)

The consequences of financial illiteracy across the nation are grim: oppressive debt, lack of savings, increasing numbers of bankruptcies, little or no retirement funds. And these negative consequences spill over into people’s relationships, work and personal lives, and physical and mental health.

Even with the severe long-term consequences and the major risk this issue poses to youth – schools fail to teach financial literacy in accordance with the minimum standards required by other core topics mandated in schools.

All States Financial Education Mandates Fail Students

After a detailed review of all current state financial literacy mandates and an analysis of most financial education bills currently advancing through the legislative process, the conclusion is clear:

No state meets the minimum education standards applied to other core subjects.
No student will graduate with the competencies needed to make even basic, qualified near-term financial decisions.

Despite growing recognition of the importance of financial education, existing state mandates fall critically short in ensuring students graduate with real-world financial skills. Unlike traditional subjects—where teacher qualifications, curriculum standards, measured outcomes, and instructional rigor are enforced—financial literacy is treated as an afterthought.

NFEC State Financial Education Mandates Evaluation Model:
12-Point Review Based on 2 Core Criteria

The National Financial Educators Council (NFEC) evaluates state financial education mandates using a comprehensive 12-point review centered on two key criteria:

1) Does the States Financial Education Mandates to Meet Minimum Standards of Other Core Subjects

Financial education deserves the same rigor, educator qualifications, curriculum quality, measurable outcomes, and pedagogical standards as core subjects like math, science, and language arts. Currently, every state with financial education mandates falls well short of these standards, resulting in ineffective instruction and minimal real-world impact. Our evaluation ensures that state mandates:

Require qualified educators to teach personal finance, just as other core subjects require teacher credentials and subject matter expertise.
Implement clear, measurable learning outcomes that track student progress and mastery.
Adopt quality standards for curriculum materials, ensuring instruction is research-based, engaging, and aligned with national benchmarks.
Integrate scaffolding techniques, allowing students to build on prior knowledge progressively.
Encourage parental involvement to reinforce financial education at home.
Provide ongoing education opportunities, ensuring students continue financial learning beyond high school.

2) Ensuring Every Student Graduates Prepared for Near-Term Financial Decisions

Even small financial missteps early in life can lead to severe long-term consequences—making it essential for financial education to equip students with the skills to make informed decisions and avoid these pitfalls. Financial literacy mandates should ensure students are prepared for the immediate financial realities they will face after high school, including becoming self-sufficient, securing employment, minimizing or avoiding debt, building a positive credit history, and managing other near-term financial challenges where many graduates struggle. Our evaluation assesses whether state mandates:

Require curricula that emphasize real-world financial applications, focusing on practical, near-term financial decisions that students will encounter early in adulthood.
Focus lessons on common financial life stage events that students will likely encounter in the near term, helping them make informed decisions and avoid financial mistakes with long-term consequences.
Develop higher order thinking skills, ensuring students can apply financial knowledge to real-life scenarios, analyze financial choices, create plans, and make informed decisions.
Address the psychological and emotional aspects of financial health, recognizing that financial stress can impact mental well-being, decision-making, and overall life outcomes.
Utilize evidence-based financial education methods, ensuring that students retain knowledge and develop positive financial behaviors.

Accredited Financial Literacy Professional℠ Requirements

Bullet Point of Criteria

We urge policymakers to implement higher standards for financial education mandates, ensuring that all students graduate with the knowledge and skills needed for financial independence and long-term success.

Through our 12-point review process, the NFEC evaluates state financial education mandates to ensure they meet rigorous academic standards—on par with core subjects—and effectively prepare students for the real-world financial challenges they will face immediately after graduation.

All State Mandated Financial Literacy Programs Fail

New Guidelines Introduce Fundamental Standards for High School Financial Education

Educational standards have been laid out for the rest of the core curriculum most students receive, but not yet for financial education – a topic that would benefit 100% of American children and teens.

Even with more states adopting financial literacy, we have yet to provide schools – even those schools that do offer financial education to students – with guidance regarding the optimal content, rigor, and educator preparation for teaching personal finance. Financial education for grades K-12 needs a framework that sets forth standards for program quality and rigor, teacher qualifications, and testing. Such guidelines have been in place for traditional subjects since the 1980s, as described in the following section.

The National Financial Educators Council is working to address this gap. We developed the first standards that mandate financial education at all grade levels K-12 and set benchmarks for program rigor, teacher qualification, and evaluation measures to quantify impact. Now we are advocating to encourage adoption of these standards nationwide.

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NFEC Commitment: Advancing Standards to Create Measurable Social Impact

Accreditation

As an IACET Accredited Provider, the NFEC offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard.

Social Impact

As a Certified B Corporation, the NFEC meets the highest standards for socially responsible commerce, using the power of business to build more sustainable economies.

Standards

The NFEC set industry standards for the financial education and financial coaching industry These standards are used to review and recognize programs that align with these standards.

Help Us Advocate for Meaningful Personal Finance Standards

The mission of the United for Financial Literacy℠ Advocacy Initiatives is to promote higher financial literacy standards in schools, encourage parental involvement in their children’s financial education, and support communities with financial education programming.

Our Advocacy Committee Members form the backbone of United for Financial Literacy℠, driving our mission forward with their unwavering dedication and passion. These members are diverse professionals, educators, and community leaders who bring a wealth of experience and insight to our initiatives.

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Schools & Legislation: Advancing Financial Education Standards

Parents: Encouraging Parental Involvement in Financial Education

Youth: Mobilizing Youth to Promote Financial Education in Schools

References

1. American Public Education Foundation. The Nation’s Report Card on Financial Literacy [Internet]. Collierville, TN: American Public Education Foundation; 2022. Available from: https://www.thenationsreportcard.org/

2. Smith J, et al. The impact of financial education mandates on young adults’ financial behavior. Journal of Consumer Affairs, 54(3), 1102-1133. https://doi.org/10.1111/joca.12313

3. Stoddard, C. The effects of state-mandated financial education on young adults’ college financing behaviors. Journal of Family & Economic Issues, 40(2), 278-293. https://doi.org/10.1007/s10834-018-09620-9

4. Education Commission of the States. High School Graduation Requirements [Internet]. Denver, CO: Education Commission of the States; 2019. Available from: https://reports.ecs.org/comparisons/high-school-graduation-requirements-01

5. Stern JA, Brody AE, Gregory JA, Griffith S, Pulvers J. The state of state standards for Civics and U.S. History in 2021 [Internet]. Washington, DC: Thomas B. Fordham Institute; 2021 Jun. Available from: https://fordhaminstitute.org/national/research/state-state-standards-civics-and-us-history-2021

All States Financial Education Mandates Fail Students

Financial Education Programs Benefit More Students with Necessary Information

According to recent studies (2, 3), a limited proportion of students reap financial benefits from their high school coursework, underscoring the potential significance of integrating financial literacy education into the curriculum. By equipping graduates with essential financial knowledge and skills, financial literacy can directly contribute to their personal well-being.(3)

References for Graphic

1. Council for Economic Education. 2022 Survey of the States: Economic and personal finance education in our nation’s schools. New York: Council for Economic Education; 2022.

2. Grove A. High school course requirements for college admissions. ThoughtCo [Internet]. 2021 Feb 27; Available from: https://www.thoughtco.com/high-school-course-requirements-college-admissions-788858

3. National Association of College Admissions Counseling. High school classes required for college [Internet]. National Association for College Admissions Counseling; 2023. Available from: https://www.nacacfairs.org/learn/prep/high-school-classes-required-for-college-admission/

4. Handel MJ. What do people do at work? A profile of U.S. jobs from the survey of workplace Skills, Technology, and Management Practices (STAMP). Journal of Labour Market Research. 2016;49:117–97.

5. Education Commission of the States. High School Graduation Requirements [Internet]. Denver, CO: Education Commission of the States; 2019. Available from: https://reports.ecs.org/comparisons/high-school-graduation-requirements-01

6. Cheeseman Day J, Martinez A. Does majoring in STEM lead to a STEM job after graduation? [Internet]. Washington, DC: U.S. Census Bureau; 2021 Jun. Available from: https://www.census.gov/library/stories/2021/06/does-majoring-in-stem-lead-to-stem-job-after-graduation.html

7. U.S. Bureau of Labor Statistics. Job Outlook [Internet]. Washington, DC: US Bureau of Labor Statistics; 2021. Available from: https://www.bls.gov/ooh/media-and-communication/writers-and-authors.htm#tab-6

8. U.S. Bureau of Labor Statistics. Occupational Outlook Handbook: Field of degree: English [Internet]. Washington, DC: U.S. Bureau of Labor Statistics; 2019. Available from: https://www.bls.gov/ooh/field-of-degree/english/english-field-of-degree.htm

9. Nazareth S. Should foreign languages be mandatory? Claremont Courier [Internet]. 2019 Oct 23 [cited 2022 Nov 2]; Available from: https://thewolfpacket.org/4894/opinions/should-foreign-languages-be-mandatory/#:~:text=The%20mandatory%20classes%20are%20problematic%20for%20many%20reasons%2C,do%20a%20good%20job%20of%20teaching%20foreign%20languages.

10. Stern JA, Brody AE, Gregory JA, Griffith S, Pulvers J. The state of state standards for Civics and U.S. History in 2021 [Internet]. Washington, DC: Thomas B. Fordham Institute; 2021 Jun. Available from: https://fordhaminstitute.org/national/research/state-state-standards-civics-and-us-history-2021

11. U.S. Bureau of Labor Statistics. Employment by major industry sector [Internet]. Washington, DC: U.S. Bureau of Labor Statistics; 2021. Available from: https://www.bls.gov/emp/tables/employment-by-major-industry-sector.htm

Current Subjects Required in Most States

The traditional high school curriculum covers Math, Science, Social Studies, English, Foreign Language, and some form of Arts. That was true in 1920, and it’s still true today. Our question is: how well did high school prepare young Americans to enter the workforce in eras gone by, and to what extent – if any – has that life preparedness changed across the years?

You probably know that the prevalent occupations during many of the last 10 decades were very different from the careers available today. And you’re also aware that our schools have always been charged with preparing young people to become independent adults, ready to enter the workforce and face the challenges of the real world.

So why have Americans been studying the identical subject matter in high school for more than a century? And why are we not teaching personal finance?

English Language Arts

Almost all US states require 4 years of English/Language Arts for high school graduation. The exceptions are California, which requires 3; Idaho, which requires 4.5; Colorado and Massachusetts, which allow individual districts to establish graduation requirements; and Maine and Vermont, which have adopted proficiency-based standards.(4)

History/Social Studies

The usual Social Studies requirement for high school graduation in the US is 3 years. Eight states require 4 years; three states require just 2 years; Idaho and New Hampshire require 2.5 years; and Minnesota and New Mexico require 3.5 years. Massachusetts and Pennsylvania leave the decision to local school districts, while Maine and Vermont use proficiency-based standards.(4, 5) Typical course requirements include US, world, and specific state history; civics and/or government; and in some cases, geography.

Science/Technical Subjects

A majority (34) of US states require 3 years of Science for high school graduation. Five states require 4 years of Science instruction; a further seven states require just 2 years. Colorado, Maine, and Pennsylvania leave the decision to local school districts. Maine and Vermont have adopted proficiency-based standards.(4 Education Commission) Among specific courses, Biology is the top requirement among US states, with several states listing “lab sciences” as specific courses required. Other common courses include Physical Science, Chemistry, and Physics. In a few states, Computer Science or Engineering can be substituted for one of the other course requirements.

Mathematics

Nearly all (45) US states require at least 3 years of Mathematics for high school graduation, and 17 states plus the District of Columbia require 4. Only California and Montana require less (2 years). Maine and Vermont use proficiency-based standards; while Massachusetts and Pennsylvania charge local school districts with determining the Math graduation requirements.(4 Education Commission) Notably, all states that specify Math standards for high school graduation require Algebra as at least one of the course units.

Foreign Language

As of 2019, many states have removed the Foreign Language requirement for high school graduation. However, a 2-year Foreign Language requirement remains in six states, two of which (Louisiana and Michigan) require that the 2 units be taken in the same language; and New Jersey requires 1 year of world language or demonstrated proficiency. Eighteen states require 1-3 units which may be chosen from among Career and Technical Education (CTE), Foreign Language, Arts Education, or Visual/Performing Arts. Two states (Colorado and Massachusetts) leave the decision at the local district level.(4 Education Commission)

Addressing the Gap

To address the gap in standards for personal finance education, the National Financial Educators Council has developed a set of benchmarks for all grade levels, K-12. This standards guide offers schools a yardstick by which to evaluate program rigor, teacher qualifications, and testing measures to quantify impact. The goal is to lay out a framework that standardizes educational quality and learner outcomes to provide the best possible financial education for American youth.

The Standards Guide is based on the notion that financial education should be treated the same as any other topic taught in schools. That means the subject should be held to the same standards of rigor, pedagogy, and measurement as all other curriculum material. Thus the standards cover 11 areas:

1) Qualified leaders head program development and deployment.
2) Financial education is presented as a standalone program with added integration into other subjects.
3) Time taught and rigor of material.
4) Highly-qualified personal finance educators.
5) Learner outcomes focus on long-term financial wellness and early indicators.
6) Implement curriculum that balances research-based educational methodologies with practical application.
7) Encourage parental involvement and give parents access to resources.
8) Relevant content that prepares students for near-term financial life events.
9) Differentiation by socioeconomic status.
10) Conduct ongoing education to support long-term behavior change.
11) Fund financial literacy programs.