Mandating Financial Courses

mandating Financial Education in US High Schools

Laila Tatum COM 2204H

Policy Proposition

The federal government should make financial literacy a required course in all high schools

Definitions

Some terms you want to know

Definitions

Federal Government Congress and the U.S. Department of Education establishing national education policies and a standard for graduation requirements (US Department of Education, Congress.gov) High School Grades 9–12 in U.S. public and private schools (NCES)

Financial Literacy “possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual’s personal, family and global community goals” (National Financial Educators Council) Required Course A standalone, credit-bearing high school class necessary for graduation, not just an elective

Brief History

Some Background on the controversy

2006

The National Association of State Boards of Education suggested that states include financial literacy in their curricula

2013

background

Only 19 states required a personal finance course in their curricula due to conflicts with instruction time and demand for support in subjects like science and math

Source: Federal Reserve System

2025

29 states with mandated financial literacy courses

Claims

Arguing for change

Claim #1

• Requiring high school students to take a financial literacy class will improve credit scores, lower the percent of people who miss their loan due dates, and minimize the use of sketchy lending services

• A Federal Reserve study found that states with mandates saw an increase in credit scores and reduced delinquency rates among 18–21 year olds who attended high schools where finance classes were mandated (Brown, Collins, Schmeiser, Urban)

Claim #2

• Students who receive financial literacy education are less likely to default on student loans and more likely to choose affordable repayment options
• Urban et al. (Journal of Public Economics) found that students in states with financial education are less likely to default on student loans and more likely to use lower-cost repayment options

Claim #3

• Financial literacy is a matter of equity and empowerment, every student deserves the knowledge to make informed choices about their financial future
• Council for Economic Education’s 2022 Survey of the States shows low-income and minority students are least likely to access financial education, widening inequality
• Lusardi, Mitchell & Curto (NBER) found that women, minorities, and students from less-educated families are disproportionately financially illiterate

Inherencies

What is preventing change from happening?

Structural Inherency

Only a patchwork of state requirements exists, and fewer than half of U.S. states require a standalone personal finance course for graduation

Attitudinal Inherency

Many schools prioritize standardized test subjects (math, science, reading) over life skills courses

• “Personal growth and job skills have taken a backseat to an increased focus on standardized test scores in schools across the nation, according to new UB-led research.” (University at Buffalo)
• With the shift in education goals and priorities to STEM subjects and standardized testing, life skills such as finance are deprioritized and many students don’t get the opportunity to develop their financial literacy as a result

CounterArguments

opposing arguments

States already handle this

Counterargument #1

• The patchwork approach leaves millions of students without access
• Education should not depend on your ZIP code, a national standard ensures fairness
• According to the 2024 Report of Financial Education, only 27% of high school students are required to take a standalone financial literacy course, which leaves the other 73% of students without guaranteed financial education

CounterArgument #2

Families should teach money skills, not schools

• Not all families have equal knowledge or resources, leaving it up to families widens inequality (GFLEC)
• Schools are meant to provide universal access to essential skills

Conclusion

The solution is clear: make financial literacy a required course for all

CONCLUSION

• The federal government has the opportunity, and the responsibility, to ensure every student leaves high school empowered with the knowledge to manage their financial future

• Anything less leaves our young people at risk, and that is unfair

THANK YOU!

According to the National Endowment of Financial Education (NEFE), 29 states have made financial education a graduation requirement, while the other 21 either have a partial education requirement or none at all Only 10 of the 29 have fully implemented this requirement, 19 are in the process of implementing the graduation requirement, and some states like North Dakota have personal finance embedded in courses like economics (NGPF)