For the first time, researchers have directly tied personal finance instruction in high school to better adult behavior. -- This could change everything.
A required personal finance course in high school leads to higher credit scores
and fewer missed payments among young adults, new research shows.
These are groundbreaking findings likely to alter educators’ thinking in 50 states.
and fewer missed payments among young adults, new research shows.
These are groundbreaking findings likely to alter educators’ thinking in 50 states.
Until now, researchers have been unable to show consistent evidence that
mandatory financial education improved students’ money management skills.
With no proof, states have moved slowly on this front—despite encouragement
from the president and federal education officials who see financial education
as a critical part of the strategy to avoid another financial crisis.
mandatory financial education improved students’ money management skills.
With no proof, states have moved slowly on this front—despite encouragement
from the president and federal education officials who see financial education
as a critical part of the strategy to avoid another financial crisis.
Only 22 states require students to take an economics course, and just 17
require instruction in personal finance, according to the Council for Economic
Education’s most recent Survey of the States. While countries like Australia and
England have adopted federal mandates for such coursework, the effort in the
U.S. is at the state level and has been slow to gain traction.
require instruction in personal finance, according to the Council for Economic
Education’s most recent Survey of the States. While countries like Australia and
England have adopted federal mandates for such coursework, the effort in the
U.S. is at the state level and has been slow to gain traction.
Critics of financial education have long argued that kids may learn financial
concepts but do not retain them long enough to change behavior as adults,
and that the power of advertising overwhelms any lessons of frugality learned
in high school. Some believe financial education is a waste, and that we are
better off using resources to set up third-party point-of-decision counseling.
concepts but do not retain them long enough to change behavior as adults,
and that the power of advertising overwhelms any lessons of frugality learned
in high school. Some believe financial education is a waste, and that we are
better off using resources to set up third-party point-of-decision counseling.
