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Financial Education in Schools

Overview

Financial capability – the ability to make informed judgments and effective decisions about money management – can be as important a determinant of an individual’s long-term financial security as his or her income, health and education. States should ensure that students receive quality instruction in key personal financial concepts. Among other policy measures, states can mandate that students complete a course in personal finance as a condition of graduation; develop content standards for personal finance curricula; and require testing in key personal finance topics.

Policy Ratings

To see state-by-state policy data, click here.

Elements of a Strong Policy

Based on research by the Council for Economic Education, CFED considers a state’s financial education policy strong if it meets the following criteria:

1. Does the state require students to take a personal finance course? States should mandate that students take and complete a course in personal finance as a condition of graduation.
2. Does the state have content standards for personal finance courses? States should include personal finance in K-12 curriculum standards to ensure that students are meeting basic standards, objectives and proficiencies in classroom instruction.
3. Does the state require schools to implement content standards for personal finance? Even if states include personal finance in curriculum standards, local school districts are not necessarily required to implement those standards in the classroom. As school districts often confront competing curriculum priorities, they may choose to implement some, but not all, standards. Requiring school districts to implement personal finance content standards ensures that the intention of state policy is carried out.
4. Does the state require the testing of student knowledge in personal finance? Just as with math and reading, students should be required to demonstrate a basic proficiency in personal finance in order to graduate from high school.