Money management skills are not often part of the core curriculum taught in America’s high schools. Yet handling personal finances wisely is an essential life skill. This week, however, Pennsylvania passed legislation requiring all high school students in the state to complete a personal finance course before they graduate. With the Keystone State on board, over half of U.S. high schoolers now have guaranteed access to financial literacy classes.
The new Pennsylvania law mandates that starting in fall 2026, schools provide a one-semester class in 9th through 12th grade covering real-world money topics like income, spending, credit, investing, and financial risk. This requirement joins similar ones in 24 other states aiming to prepare teens to make smart financial decisions as adults.
According to Yanely Espinal, head of outreach at Next Gen Personal Finance, a non-profit promoting financial education, 53% of American high school students will now be assured of taking such a course. The percentage reflects both states that currently guarantee the classes for graduating seniors, as well as ones that have passed legislation not yet fully implemented.
Wisconsin recently upped the tally by signing a bill requiring personal finance training for the class of 2028 onward. Upon approving it, Gov. Tony Evers stressed that kids need the tools and skills to handle budgets and money choices responsibly later in life. Other states adopting new measures in 2023 alone include Ohio, Oklahoma, West Virginia, Indiana, Kansas, Kentucky, and now Pennsylvania.
Momentum Building to Prepare Youth
While a few states have long mandated financial literacy classes, experts cite the COVID-19 pandemic as a driving force behind the recent groundswell of policy changes. Record job losses and economic uncertainty exposed how financially vulnerable many households were across the country.
John Pelletier, director of Champlain College’s Center for Financial Literacy, points to the stark difference between states over the past decade in ensuring school districts provide money management for students. The Center releases an annual report card grading states from A to F based on requirements for high schoolers to take personal finance courses.
In the 2013 rankings, only five states earned an A with such a guaranteed graduation prerequisite in place. But looking ahead to 2028, Pelletier projects half the country – 25 states – will make the grade as more legislation gets phased in. He describes it as a “tremendous change on the horizon” now that policymakers recognize the vital need.
Real-World Skills to Last a Lifetime
Typical personal finance classes cover earning, spending, saving, using credit cards and loans, building good credit, long-term investing, and handling risk. Such financial literacy training equips high schoolers with practical money skills and knowledge for life after graduation.
Studies analyzing states with longest-running programs show notable benefits over time. For example, research found required courses correlated with higher credit scores and less loan delinquency for young adults in Texas versus states lacking mandates. Graduates were also less likely to use payday lenders or carry high credit card balances.
“Once you graduate from high school, not a day will go by that you don’t think about money – how to make it, spend it, save it,” says Pelletier. “You will be thinking about this until the day you die.” He argues financial education should no longer be left to local districts to decide, but ensured for all given its lifelong applicability.
Progress Still Needed in Some States
Nationwide, only three states now fail when it comes to guaranteeing teens financial literacy training. California, Connecticut, and Massachusetts join Washington D.C. and South Dakota in lacking mandates for students to take personal finance classes. Advocates are actively working to change laws in these lagging areas.
Tim Ranzetta, co-founder of Next Gen Personal Finance, highlights strong grassroots support for measures in California requiring financial education. “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,” he explains.
While momentum continues, there are still pockets of the country where high schoolers risk entering adulthood without basic money management skills. Hopefully more states will follow the example set by Pennsylvania and others acting this year to embed financial literacy into standard public education. Teaching teens how to budget, build credit, save and invest prudently will pay dividends for years to come.
