The list of states that require high school students to take a course in financial literacy is steadily growing. While the importance of high school students learning about personal finance is widely acknowledged, it’s a topic that sparks mixed opinions, Forbes reports.
(Chris Potter via Flickr Creative Commons)Some people believe it’s crucial for students to learn about money because these skills are indispensable in adulthood. However, there are valid concerns about the downsides, such as teachers’ preparedness to teach finance or the potential influence of profit-driven companies on the lessons.
A big concern is that teachers may need to learn more about finance to teach it well. Schools need to find special teachers or train current ones, and teaching finance might mean taking time away from other subjects.
Another worry is that financial education could be biased by sponsorship from companies, like credit card companies, which might not have the students’ best interests at heart. Do you know how some schools now serve fast food for lunch? Parents have the same distaste for credit card companies providing lessons on financial literacy.
Despite these concerns, many educators and lawmakers believe teaching finance in high school is very important.
High schools in most states now offer personal finance courses, and California recently decided that all high school students will need to take a finance class to graduate starting in the 2030-31 school year.
“We need to help Californians prepare for their financial futures as early as possible, Forbes quoted Gavin Newsom, California’s governor, as saying in a press release. “Saving for the future, making investments, and spending wisely are lifelong skills that young adults need to learn before they start their careers, not after.”
The Survey of the States, available from the Council for Economic Education (CEE), reports that 12 more states now than in 2022 require students to take a course in personal finance to graduate high school.
Learning about personal finance can help students manage money better in the future. For example, understanding how to budget, save, and invest can prevent future money problems. Experts say financial literacy is crucial because it affects daily life, from managing bank accounts to planning for retirement.
“Every single day, people are dealing with their bank accounts, car payments, insurance, saving for their 401k, and retirement,” the business journal quoted Matt Chancey, a financial advisor, as saying. “Financial literacy touches every aspect of your life and almost every decision you make, so it is probably one of the most important things that we should be teaching that we don’t.”
