All US states failing to provide adequate basic financial literacy education: NFEC

Analysis finds that financial education falls short of what's offered in other subjects.

A recent report highlighted the poor levels of financial literacy among American teens, but are states doing enough to ensure that the next generation have the money skills they are going to need?

Not according to a new analysis of state mandates from the National Financial Educators Council which found that none of the states provide even the basic standards required for all other subjects which are subject to scrutiny among several metrics including quality, time allocation, training, and funding.

This is despite the crisis in financial literacy among Americans well into adulthood and recent standard reforms for K-12 education. The report found that financial literacy is not prioritized as a core subject area in any state, despite its potential lifelong benefit for every student.

“When we fail to hold financial education to high standards, it’s our kids who suffer,” comments Vince Shorb, the NFEC’s CEO. “State financial literacy mandates don’t require financial literacy instruction to meet even the basic educational standards applied to other subjects. Yet all high school graduates will use money management skills every day of their lives, and lack of financial literacy has a serious impact on their success and security. Holding personal finance teachers, curriculum, and testing to the same standards as other high school subjects is common sense.”

The organization wants to see education for school-age children that includes how to earn and manage income and in its Policy & Framework Standards for High School Financial Literacy Education it calls for the elevation of financial literacy to the same standard as other core subjects and that students should graduate with the knowledge to make near-term financial decisions.