Exploring How Many States Require Financial Education

Across the United States and beyond, a serious epidemic is spreading that has escaped the notice of both the public and the leaders who shape public policy. Financial literacy statistics show that financial awareness is missing in most homes, and studies of how many states require financial education indicate that they are few and far between. And yet the data also show that, when targeted awareness initiatives and education are deployed through our public school systems, the positive results can permeate throughout families and society as a whole.

These facts send a clear message to policymakers and individuals who desire to improve their communities: the financial illiteracy epidemic must be addressed. Knowing what states require financial education in high school and which don’t is a good first step.

Current Issues

The current state of financial education mandates in every U.S. state fails to meet the minimum educational standards required for other subject areas. To bridge this gap, it is crucial for educators, assessments, and instructional materials to meet or exceed the standards set for other subjects taught in schools. By prioritizing comprehensive financial education, we can equip our children with the necessary tools to help them reach a financially secure future.

To address this issue, the NFEC has developed the Policy & Framework for High School Financial Literacy Education. This framework provides guidance to policymakers and schools aiming to implement effective financial literacy programming. By adopting and implementing such policies, we can take a significant step forward to ensure that our children receive the comprehensive financial education they deserve.

To this end, the NFEC developed the Policy & Framework for High School Financial Literacy Education to guide policymakers and schools seeking to implement financial literacy programming.

We sought to delineate how many states require financial education in public high schools. The majority of states have no such mandate. The ones that do fail to provide sufficient education to make a measurable difference in students’ lives. Although when states mandate personal finance education, it’s a key step, we’ve identified several common problems among states with current mandates in place:

Little Required Testing or Evaluation

Most states that require financial literacy education have no requirements to test or evaluate what students have learned.

Substandard Curriculum Lessons

Even when states mandate personal finance education, they often use lessons not aligned with national standards which are just random collections of subjects rather than carefully-crafted lesson plans.

Subpar Curriculum Quality

The teaching materials frequently lack educational value. Many states simply give teachers a list that links to random resources, ranging from credit card offers to government organization websites. Further, as FINRA stipulates, there is a wide variation in implementation quality (https://www.finra.org).

Access

Educators often have difficulty accessing the materials. Repeated attempts to reach the Commissioner’s office met with no response.

Not Stand-alone

States that require financial literacy education do not mandate when classes are taught or require stand-alone testing of student progress. When there are no measures to verify completion, many students probably miss out on the topic.

Lack of Educator Training

No training is provided or mandated for educators to teach this topic. Yet educator quality is the single most influential factor in student success.

“Students in the state with the most robust financial education mandate complete only a semester-long course,” says Vince Shorb, the NFEC’s CEO. “Imagine trying to speak a second language or learn any subject after only 10 hours to one semester. Financial education goals should focus on outcomes – and achieving results requires more time and an emphasis on literacy, behaviors, sentiment, and setting up management systems.”

View a List of What States Require Financial Education in High School