Dive Brief:
- A new survey from the Council for Economic Education reports that just 17 states require high school students to take personal finance classes, a number that has remained stagnant since 2014.
- At the same time, the study found that the subject matter is being incorporated into teaching, with all 50 states including economics in standard K–12 standard curricula.
- Personal finance education and economics classes can have a substantial impact on students’ lives after graduation, with those from states requiring such learning showing higher credit scores than those from states without such mandates.
Dive Insight:
CNBC reports that students who graduate after taking personal finance or basic economics classes are also more likely to pay bills on time, which can have a significant cumulative credit impact later on. The lasting effects of good or bad credit can haunt young people for years, helping to lock them within cycles of poverty or boost them socioeconomically.
The new Council for Economic Education survey also points out a lack of learning at home. A previous French study from 2012 showed American students ranking in the middle of the pack when it came to understanding personal finance.
Still, some traditional skills offered might be outdated. Balancing a checkbook, for example, is one antiquated way to deal with money. Smartphone technology and banking apps have eliminated the use of such accounting practices for many young people, and the popularity of DIY finance websites such as Mint.com have also helped fill in the knowledge gap.