Council Post: Should Schools Teach Financial Literacy Classes? (2024)

FAQs

Council Post: Should Schools Teach Financial Literacy Classes? ›

Learning how to handle money correctly is crucial for students to be successful as adults. According to the Council for Economic Education, only 21 states in the U.S. require high school students to take a personal finance course.

With school-aged kids currently growing up during turbulent economic times, teaching them financial literacy early on and arming them with the skills they need to make informed finance-related decisions can have long-lasting positive effects on their lives.

In fact, last fall, the State Education Department's Blue Ribbon Commission on Graduation Measures recommended to the Board of Regents that financial literacy should be a graduation requirement. State Education Commissioner Betty A. Rosa and New York State Comptroller Thomas P.

Many students who leave high school face a similar handicap while dealing with simple deeds such as managing their loans, money and debt. Therefore, Schools in America should allow financial literacy in their curriculum since it gives a better understanding of financial management for the future.

Although 40 of the 50 states have acknowledged the need for financial education in schools by adopting some type of education standards, most of the teachers in those states remain uneducated on the basics of teaching personal finance and feel unprepared in how to effectively achieve those new standards.

In conclusion, financial literacy has both its advantages and disadvantages. On the one hand, being financially literate can help individuals make more informed decisions with their money and avoid debt. On the other hand, financial literacy can also lead to people becoming more materialistic and obsessed with money.

Another reason for the lack of financial education in schools is that educational decisions are made on a state level. That means there are no federal mandates or guidelines to help schools master the most effective approach to teaching personal finance.

Don't worry—we've broken it all down for you in the chart below. But before we get there, here's a quick overview: Only 25 states require students to take a stand-alone personal finance course in order to graduate.

Teaching kids the basics of money management can help them develop the skills necessary to achieve financial success later in life. From saving and investing to creating and sticking to a budget, early money lessons can give your kids a leg up when it's time for them to make more significant financial decisions.

The study found that financial literacy decreases preference for the present, suggesting a positive effect on decision-making and saving behavior. The negative effects of financial literacy include taking too many risks, overborrowing, and holding naive financial attitudes.

Why is it important to teach financial literacy? ›

A strong foundation of financial literacy can help support various life goals, such as saving for education or retirement, using debt responsibly, and running a business. Key aspects of financial literacy include knowing how to create a budget, plan for retirement, manage debt, and track personal spending.

Students can learn the basics of personal finance by incorporating financial literacy into the school curriculum. This knowledge is a foundation for making informed financial decisions and helps them avoid common financial mistakes that can have long-term consequences.

States committed to a semester long personal finance course for graduation. Today, 22.7% of high school students in the U.S. have guaranteed access to Personal Finance courses. This means that nearly 1 in 4 students are going to graduate in 2022 having received the education they need to be financially capable!

Updated (03/07/24): 25 states guarantee their students will take a standalone personal finance course of at least one semester before graduation. Many of these states are in the midst of implementing these new requirements between now and 2028.

Anyone can apply to become a certified financial education instructor, no matter their level of education, though a background in teaching or finance is recommended. The range of people who get the certification typically hail from sectors including education, finance, philanthropy and community-based initiatives.

Financial literacy today

Today, it's taught in high schools and colleges around the country. At last count, 47 states included personal finance in their K-12 standards. However, of those, only 27 states are required to offer a personal finance class, and only 23 states require high school students to take one.

Teaching kids the basics of money management can help them develop the skills necessary to achieve financial success later in life. From saving and investing to creating and sticking to a budget, early money lessons can give your kids a leg up when it's time for them to make more significant financial decisions.

Incorporating financial literacy education into educational curriculum can equip students with the necessary knowledge and skills to make good financial decisions and secure their future, leading to economic growth and prosperity.

Right now, more than half the states require schools to offer personal finance in high school. But not all of those states require students to actually take a personal finance course to graduate.