Learning about personal finance in high school is now mandatory for about a third of the country.
Driving the news: Michigan’s House of Representatives on Tuesday passed a bill that will make it the 14th state to guarantee high school students a personal finance course before graduation.
- “At the most basic level, a secondary education should prepare students for adult life,” State Representative Diana Farrington said in a statement.
- “Personal finance should be part of that academic preparation,” she added. “A financial literacy course will familiarize students with key financial concepts, helping them understand how to manage their personal budget.”
The big picture: In all, 14 states mandate personal finance education at the high school level. Here’s a breakdown of those states, according to Next Gen Personal Finance, which offers a personal finance program.
- Alabama — High school students must take a one-year career preparation course that includes personal finance lessons.
- Florida — High school students must take a personal finance course to graduate.
- Georgia — High school students must take a financial literacy course in their 11th or 12th grade to graduate.
- Iowa — All school districts require students to take at least one half-year personal financial literacy course beginning in 2022-23.
- Michigan — High school students must take a personal finance course before graduating to receive a diploma.
- Mississippi – Starting in 2022, Mississippi will require students to complete a college and career readiness course before graduation. Financial literacy is one of the units for students in this course.
- Missouri — Students must complete a half-credit in the field of personal finance to graduate.
- Nebraska — Beginning in the 2023-2024 school year, students must take at least five hours of personal finance or financial literacy courses to graduate from high school.
- North Carolina — Students must pass a personal finance course to graduate.
- Ohio – Students entering ninth grade on or after July 1, 2022 must earn a financial literacy half credit to graduate.
- Rhode Island — The state is developing a plan to create statewide standards for financial literacy in public schools.
- Tennessee — High school students must take a half-year course in personal finance to graduate.
- Utah — All high school students must take a semester course in personal finance topics as well as a state-administered end-of-course assessment.
- Virginia — High school students must complete a one-year economics and personal finance course as a condition of graduation.
What they say : Tim Ranzetta, co-founder of Next Gen Personal Finance, told Axios that “no student leaves a personal finance course wondering how they’re going to use it in their real life.”
- “Money management is an essential skill that all students will need to address in their lives,” he said in an email.