Financial literacy has become increasingly important in today’s complex and fast-paced world. Today’s personal finance education encompasses far more than learning to balance a checkbook or understanding the basics of saving. It covers a wide range of critical topics, including budgeting, investing, understanding credit, taxes, how the stock market works, managing debt, financing higher education, and planning for retirement. A comprehensive financial education program equips students with the skills they need to make informed decisions about money, both in the short and long term. Yet, despite its importance, the state of financial education in the United States remains a patchwork of policies, with significant disparities in access and quality across states.
Which States Require Personal Finance
As of August 2024, 26 states in the U.S. mandate some form of financial education as a requirement for high school graduation. California recently joined the list of states that require districts to offer a stand-alone, semester-long course in personal finance at every high school starting in the 2027-28 school year.
The number of states requiring personal finance education has more than tripled since 2008 and in 2023, West Virginia, Indiana, Minnesota, Connecticut, Louisiana, Oregon, Wisconsin, and Pennsylvania all passed legislation to guarantee standalone courses in personal finance. Other states that have already fully implemented financial education mandates include Alabama, Mississippi, Missouri, Nebraska, North Carolina, Rhode Island, Tennessee, Utah and Virginia. States with implementation in progress include Florida, Georgia, Indiana, Iowa, Kansas, Michigan, New Hampshire, Ohio, South Carolina, and West Virginia.
While this represents tremendous progress, it still leaves millions of students without guaranteed access to essential financial knowledge. Additionally, financial education mandates often come without the necessary funding to support their implementation, leaving schools to shoulder the financial burden of curriculum development, teacher training, and resources.
An Opportunity for the Private Sector to Step Up
The private sector has a unique opportunity to step in and support cash-strapped school districts that are struggling to implement mandated financial education programs. In fact, private sector support is both needed and welcomed by school districts to help positively impact the next generation.
Organizations can help bridge gaps by providing funding, resources, and expertise to ensure that financial education programs are comprehensive and accessible to all students. By working alongside schools, businesses can not only provide the necessary materials but also create avenues for employees to volunteer in classrooms, offering their expertise directly to students.
Due to their placement within Career and Technical Education (CTE) programs, personal finance classes offer a unique opportunity for private sector support and involvement. Engaging with and supporting CTE programs allows companies to have a direct impact on the next generation, equipping students with practical financial skills that align with real-world needs. This collaboration benefits both students and the broader community by fostering a workforce better prepared to navigate the complexities of the modern financial landscape. Additionally, for organizations looking to provide volunteer or mentorship opportunities for employees, partnering with schools is a great option. Volunteering or mentoring students can help organizations build trust and goodwill in their communities, as well as develop leadership and communication skills among their employees. For students, interacting with volunteers or mentors can provide them with valuable insights, guidance, and inspiration from real-world professionals.
How EVERFI Helps
For the past 16 years, EVERFI has been committed to partnering with school districts to provide financial education to millions of students, we’ve learned a few things along the way about how the private sector can help implement thoughtful, effective, and trusted personal finance education.
Financial education is essential for preparing students for their financial future, and the private sector plays a critical role in making this a reality. Financial institutions and organizations have the unique opportunity to contribute to societal well-being by supporting financial literacy initiatives and making an impact in their communities.
With our extensive scale and network of over 23,000 schools and 750,000 teachers, EVERFI reaches nearly 6 million student learners each year. EVERFI provides a comprehensive platform that offers schools free, high-quality resources, sponsored by private sector partners. This collaboration ensures that students can access essential personal finance education without imposing costs on schools or districts.
There’s still much work to be done to ensure that every student has access to quality financial education. By partnering with EVERFI, companies help expand the reach of impactful education, ultimately fostering more financially informed communities nationwide.