Gradually more states are realizing what we have all known for many years - personal finance education should be a part of a complete education. Most educators and states ignored this for decades and watched as more young adults could not even put together a simple household budget, understand their expenses, and save for the future.
Michigan just became the 14th state to mandate personal finance education as part of high school curriculums statewide. Michigan’s House Bill 5190 mandates a personal finance course before a student can graduate high school. There are still 36 states without such education and mandates, but educators are hopeful more will recognize the critical importance of teaching young people skills that last a lifetime no matter their chosen profession.
The Michigan legislation was passed with bipartisan support. Michigan’s legislation requires that all high school students take a half-credit course in personal finance before graduating. The law will go into effect for students starting eighth grade in the 2023-24 school year.
The recent legislation for personal financial education for high school students was supported by organizations like the Michigan Bankers Association, Michigan Credit Union League, the Michigan Council for Economic Education, and two of the largest school districts in the state, Oakland Schools and Wayne County Regional Educational Agency.
Personal finance education is something all can agree on as a necessary part of young people’s education. Earlier this year, both Florida and Georgia passed similar laws guaranteeing access to a personal finance course for all students.
There is a growing trend of new state laws targeting the inclusion of personal finance education in curriculums (primarily high school).
Personal finance education is critical at the high school level as many students may decide to focus on a trade skill and not opt for college after graduation. Either way, every student will benefit greatly from understanding basic personal financial principles leading to a better future for many.
Personal financial education will also teach the students to:
Personal finance education is gradually becoming an essential component of overall education, and several states already recognize its significance in young adults' development. With this bill now, many students in Michigan will also be able to improve their trade skills which will enable them to manage a modest family budget and save for the future.
Content Source: Michigan.gov