More States Now Require Financial Literacy Classes in High Schools (2024)

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How many US states require financial literacy courses in high school? ›

Updated (3/07/24): How many states require students to take a personal finance course before graduating from high school? Updated (03/07/24): 25 states guarantee their students will take a standalone personal finance course of at least one semester before graduation.

A 2022 survey of adults nationwide showed that nearly 90% support a financial literacy requirement in high school, and nearly as many wished they had taken such a course when they were students. That's not surprising, considering the financial woes many people incur.

States committed to a semester long personal finance course for graduation. Today, 22.7% of high school students in the U.S. have guaranteed access to Personal Finance courses. This means that nearly 1 in 4 students are going to graduate in 2022 having received the education they need to be financially capable!

The Texas Education Code (TEC) requires instruction in personal financial literacy in K-8 mathematics instruction and in one or more courses offered for high school graduation.

It was not until 2008 that Utah became the first state to mandate high school students to take a personal finance course to graduate. By 2019, six states made this a requirement. Since then it has risen to 24 states as of this year, covering more than 50% of the country's student population. Washington D.C.

The report showed Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah and Virginia all earned an "A" grade because those states required 2023 high school graduates to take a personal finance course.

Another reason for the lack of financial education in schools is that educational decisions are made on a state level. That means there are no federal mandates or guidelines to help schools master the most effective approach to teaching personal finance.

High schools might avoid teaching personal finance due to several reasons, including the perceived lack of relevance to students' current lives, the gap between financial literacy and financial responsibility, and the practical constraints of traditional teaching methods.

Financial literacy can have negative effects on individuals' financial behaviors and attitudes. People with high levels of financial literacy tend to take too many risks, overborrow, and hold naive financial attitudes, which can lead to reckless behavior in certain financial aspects .

The US Ranking for Financial Literacy

Per Zippia, “The US ranks 14th in financial literacy. While this isn't the worst score in the world, it is concerning when you consider the fact that the US is the richest country on Earth.” Statistics show that only 57% of adults in America are considered financially literate.

How big of a problem is financial literacy? ›

Lack of financial literacy cost 15% of adults at least $10,000 in 2022. Here's how the rest fared. The share of people who said not being financially literate cost them more than $10,000 is up from 11% in 2021, according to a new report.

The countries with the highest financial literacy rates are Australia, Canada, Denmark, Finland, Germany, Israel, the Netherlands, Norway, Sweden, and the United Kingdom, where about 65 percent or more of adults are financially literate.

Additionally, Senate Bill 1054 from 2022 legislative session amended Sections (s.) 1003.41 and 1003.4282, Florida Statutes (F.S.) requiring that students entering grade 9 in the 2023-2024 school year and thereafter earn one-half credit in personal financial literacy and money management.

Teaching financial literacy at a younger age helps children develop healthy, lifelong financial habits. The main principles of financial literacy include earning, saving, investing, protecting, spending, and borrowing.

Research shows that students who have access to high-quality financial education have better financial outcomes as adults that result in less debt and a higher quality of life.

The effort to put financial literacy education into California high schools has been decades-long, with various lawmakers trying and failing to make the class a requirement. One nonprofit seeks success by placing the question on a ballot measure this November.

Financial Literacy by Education

Over 70% of college graduates have established an emergency fund and opened a retirement account. Only a third of high school graduates reported possessing a retirement account, while 38% reported setting aside emergency funds.

Rounding out the top five (behind Minnesota) are Nebraska, Virginia, Colorado and New Hampshire. The bottom five states in financial literacy are Alaska, Kentucky, South Dakota and Oklahoma, with Arkansas finishing dead last.

Financial literacy in the US

The index explores eight functional areas across finance, such as earnings, savings, insuring and comprehending risk. Data from the 2024 index reveals how financial literacy in the US has hovered around 50% for eight consecutive years, with a 2% drop in the past two years.