Policy and Standards Framework for High School Financial Literacy Education

Setting financial education standards on an equivalent basis with other subject areas could make a powerful difference in learning outcomes that would have a major impact on all Americans’ lives.

Financial education should be held to (at least) the same standards as other subjects in the typical school curriculum. The basic premise of these standards is that financial literacy be treated the same as any other topic taught in schools – that is, the topic of financial literacy should be held at least to the same standards of rigor, pedagogy, and measurement as any other subject matter.

Other subjects taught require specific educator qualifications, measured outcomes, quality standards for curriculum materials and educational methods, scaffolding, parental involvement, and ongoing education options. Financial literacy deserves the same treatment.

The NFEC calls for standards in high school financial education that at minimum require lessons based on near-term life events to ensure that our youth have the skills necessary to avoid common financial pitfalls that can disrupt their financial health.

Emerging research demonstrates that even seemingly minor financial missteps made early in life can have far-reaching and severe implications. While the immediate consequences of small financial mistakes may be manageable, their cumulative impact over time can be severe. For instance, credit card debt accrued during youth can lead to ongoing interest payments and a damaged credit history, making it difficult to secure favorable loan terms or even find suitable housing.

In addition to the tangible financial implications, small financial mistakes can take a toll on individuals’ mental well-being. The stress, anxiety, and feelings of helplessness associated with mounting debt, financial insecurity, or inability to meet financial obligations can have long-lasting emotional consequences.