What States Require Financial Education in High School? Not Enough

The US currently faces a serious epidemic that is spreading worldwide. This problem has been largely overlooked by the public and policymakers alike. Yet, thanks to recent financial literacy statistics, the potential pandemic has been exposed.

Statistics reveal that financial knowledge is sorely lacking in most households, and financial education is generally missing from the curriculum in school systems across our nation. When searching to discover what states require personal finance in high school, the answer turned out to be very few. Yet these statistics also show that schools represent a viable pathway for educating people and building their money management capabilities.

According to statistics, financial illiteracy pervades around the globe. The vast majority of people do not have the financial wherewithal to make healthy money decisions that set up and secure their futures. Those with power to influence public policy need to heed this message and take action.

Every State’s Financial Literacy Mandate Fails to Meet Minimum Educational Standards

Financial education is not just a theoretical subject; it is a practical skill that individuals must use every day of their lives. The knowledge and skills gained through financial literacy education have significant impact on people’s success and security. Therefore, it is crucial that educators, assessments, and materials meet standards that are at least equal to those required for other subjects taught in schools. By bringing financial literacy education into alignment with those standards, we can ensure that our children receive the comprehensive and effective 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.

Download Policy & Standards Report

So what states require financial education in high schools? Website Visual Capitalist published this map to answer that question. Most states require none, and those that do fail to provide enough to make a meaningful difference in teens’ lives. Although passing a financial education mandate in schools is a positive step toward giving students key financial skills, several drawbacks can undermine results. When investigating what states require personal finance in high school, we ran across several common problems:

Few Require Testing or Evaluation

Most states with personal finance education mandates do not require testing or evaluation, so educational success cannot be quantified.

Inadequate Curriculum Lessons

In many states, mandated lessons do not align with national standards, and represent a random collection of topics rather than thoughtfully-designed lesson plans.

Curriculum Quality

The materials used to teach are often subpar in educational value, and promote financial products and government organization agendas. The list of how many states require financial education in schools shows that many simply provide teachers a list of links to random resources.

Access

The materials are often difficult for educators to locate.

Not a Stand-alone Class

The bills neither mandate when the class is taught nor require stand-alone testing. Thus implementation is at risk and many students are likely to miss out on the learning.

No Educator Training

There is no training provided or mandated for teachers to teach this subject matter. “The effects of poor teaching can continue to affect students’ lives for many years after instruction ends.”

Vince Shorb, CEO of the National Financial Educators Council, comments, “The state that requires the most robust financial education has students complete only a semester-long course. Imagine trying to speak another language or learn any subject after only 10 hours to one semester. The goals of financial education should be focused on outcomes – achieving this requires more time and a focus on literacy, behaviors, sentiment, and setting up management systems.”