New evidence found that students who are required to be financially literate make better money-related decisions than those who don’t have access to personal finance content. That said, it’s not surprising that state-level efforts have been visible to enhance the finance IQ of US students.
According to Nan Morrison, the president and CEO of the Council for Economic Education, being financially literate can make a huge difference. He cited that college debt is real and learning how to handle government/private student loans is one way to be financially responsible.
A recent state-by-state survey revealed some great developments regarding financial literacy among students. Currently, there are 25 states that require high school students to take a course with personal finance content. South Carolina, Ohio, Mississippi, Kentucky, and Iowa are the newest states to push through with such requirements.
Florida, on the other hand, removed its requirement to include personal finance in the economic curriculum and added a separate personal financial course instead. Morrison said that Florida was taking the matter seriously; it’s now planning to revise the math curriculum to include personal finance.
Meanwhile, a few states still lack the initiative to make students financially empowered; these include Alaska, California, Montana, New Mexico, Washington D.C., and Wyoming. A limited budget (to say the least) is one thing that may have been holding these states back. However, Morrison cleared that even a small amount would suffice; it often does not require state funding plus non-profit organizations could help.