As the real-world challenges increase, so does the interest of legislators to pass laws that will enable students to make smart money decisions when they enter the workforce.
“Since 2013, there has been a more than 700% increase in states requiring students to take a personal finance course before graduation”, according to John Pelletier, director of the Center for Financial Literacy at Champlain College.
The COVID 19 pandemic strongly highlighted an economic fragility of the US population, thus, further proving the need to establish legislation directed towards financial education at early ages and as soon as the high school years.
As of today, states such as: Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah, Virginia and Wisconsin do require financial education in 9th, 10th, 11th or 12th grades, being Pennsylvania the latest to join in as the 25th state to pass this legislation.
“High school personal finance classes generally teach students real-world lessons about earning income, spending and savings, credit and credit scores, investing, and managing risk, among other topics. These are financial lessons for life”, says Sharon Epperson in her article for CNBC this last December and adds: “Studies show personal finance education can make a significant difference in young adults’ financial behaviors, from improving credit scores and lowering loan delinquency rates to reducing payday lending and helping students make better decisions about college loans”.
California resident Tim Ranzetta, co-founder of Next Gen Personal Finance said: “We are far outpacing our estimates, demonstrating what we all inherently know: that personal finance is an impactful and easy-to-implement course with strong demand from both students, parents and the general public.”