A new Pennsylvania law mandates that more than half of U.S. high school students will take a personal finance class before graduation.

• Pennsylvania became the 25th state to enact legislation mandating a semester-long personal finance course for high school students prior to graduation.
• According to Next Gen Personal Finance, 53% of students will be required to take a financial education course in high school.
• The number of states mandating personal finance courses for students before graduation has increased by over 700% since 2013, as per John Pelletier, director of the Center for Financial Literacy at Champlain College.

Soon, more than half of U.S. high school students will be mandated to take a personal finance course before graduation, with many schools incorporating real-world financial lessons into their curricula.

Pennsylvania has enacted legislation to mandate a personal finance course for high school students starting in the fall of 2026. Gov. Josh Shapiro signed the bill into law on Wednesday.

Over half of high school students in the U.S., specifically 53%, will have guaranteed access to a standalone personal finance course due to this legislation, as stated by Yanely Espinal, Director of Educational Outreach at Next Gen Personal Finance, a non-profit financial education advocacy organization. In fact, eight states already guarantee that students will take a personal finance course, while 17 other states are implementing these policies.

In 2023, eight states have implemented policies requiring students to take a personal finance course before graduation, signifying a surge in the drive for financial education in schools.

In order to prepare for their future, Wisconsin Gov. Tony Evers signed a bill that mandates high school students to take a personal finance literacy course to graduate, starting with the class of 2028. Evers emphasized the importance of financial literacy in a press release, stating, "We have to make sure our kids have the tools and skills to make smart financial and budgeting decisions to prepare for their future, so ensuring our kids have strong financial literacy is essential to setting them up for success as adults."

High school graduates in seven states, including Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah, and Virginia, received an "A" on their latest "report card" from the Center for Financial Literacy at Champlain College in Burlington, Vermont, due to the requirement that they take a personal finance course before graduation.

According to Pelletier of the Center for Financial Literacy, by 2028, 25 states are expected to receive an “A” due to new laws and policy changes. "Significant changes are imminent as states are swiftly enacting new legislation and modifying regulations."

Financial lessons for life are typically taught in high school personal finance courses, which cover topics such as earning income, spending and savings, credit and credit scores, investing, and managing risk.

You will always be preoccupied with thoughts of money.

Pelletier stated that after graduating from high school, one would constantly consider ways to earn, spend, and save money until their death.

The increase in the number of states requiring high school students to take a financial literacy course before graduation is partly due to the Covid-19 pandemic, which highlighted the financial vulnerability of many Americans.

Pelletier stated that if local control is left in charge, districts that are more likely to unilaterally implement it are white and wealthy. As a result, the people who need it the most are the least likely to receive it unless the state mandates it for everyone.

Personal finance education can positively impact young adults' financial behaviors, including enhancing credit scores, decreasing loan delinquency rates, minimizing payday lending, and enabling students to make more informed choices regarding college loans.

A few states still have ‘virtually no requirements’

Four states, including California, Connecticut, Massachusetts, South Dakota, and Washington, D.C., received failing grades in a report due to their lack of personal finance education requirements in high school. Despite this, advocates in these states are actively working to change the laws to ensure that students receive financial education.

Tim Ranzetta, co-founder of Next Gen Personal Finance, stated that they are currently exceeding their signature collection estimates for financial education in high schools, proving the demand for this course.

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