Making Personal Finance A Graduation Requirement

Why Make Personal Finance a Graduation Requirement The aspects of personal finance are much more complicated than at any time in the past. The consequences of being financially illiterate can impact our students for a lifetime. There are new and sophisticated predatory lending practices that are legal and can be financially devastating. The Goal of K-12 Education should be to prepare students for life after high school. Financial planning is a large part of that. We owe it to our kids.

Personal Finance as Graduation Requirement From the Center for Financial Literacy 36 States received a grade of C or above for requiring some sort of Personal Finance class. 11 States received a grade of F. California is one of those. Requiring a Personal Finance class as a graduation requirement is within the authority of local Board of Education. California has been considering making Personal Finance a requirement. In 2012, the Programme for International Student Assessment added financial literacy to the list of topics that are tested.

What a Personal Finance Class Might Include The Four Basic Aspects of Personal Finance Earning Spending Saving Borrowing

How a Personal Finance Class Might be Offered A minimum of 1 quarter of instruction A stand alone class offered during the year Built within another program A shorter more intense course offered during school breaks An online offering

How a Personal Finance Requirement Might be Implemented Just Do It! There are a myriad of resources currently available including complete programs. In year 1, make Personal Finance classes available and recommended. Years 2 and beyond, make the classes mandatory for graduation.

Potential Problems in Making Personal Finance a Requirement Paralysis by Analysis Fear of Change Indecision Every year we wait to implement a requirement, we miss the chance of educating hundreds of students and send them out into the world unprepared to meet the financial decisions and challenges they will face.

What a Personal Finance Requirement Might Cost The Investment Could/Should Be Minimal Ample materials are available online. No textbook is needed. Major expense is teacher time for presentation, training, and preparation. We need to search for sponsors to support the programs.

What’s The Next Step? Give the Superintendent direction to pursue establishing a course in Personal Finance as a graduation requirement and return to the Board with a concept for implementation as either a report or an action item.

Board Comments