Financial literacy courses are becoming mandatory for students in more states.

• A report from Champlain College indicates that since 2013, there has been a substantial rise in the number of states mandating students to take a personal finance course prior to graduation.
• All states that mandated a personal finance course for 2023 high school graduates earned an "A" grade, as shown in the report. These states include Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah, and Virginia.
• In the next five years, over 40% of U.S. high school students will be required to take a personal finance course before graduating.

High schools have been buzzing about financial education.

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, because they were required to take a personal finance course before graduation.

According to the report, 23 states are projected to earn an “A” by 2028 when new laws and policy changes are fully implemented.

You will always be preoccupied with thoughts of money.

In the next five years, over 40% of U.S. high school students will be required to take a personal finance course before graduating.

They will be learning lifelong lessons.

According to John Pelletier, director of Champlain College's Center for Financial Literacy, from the moment you graduate from high school, you will constantly consider how to earn, spend, and save money until the day you pass away.

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. However, advocates in these states, such as California, are 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 collecting signatures in support of financial education for all high schoolers. He added that they are exceeding their estimates, proving that personal finance is a valuable and easily implementable course with strong demand from students, parents, and the public.

Other states are also gaining momentum in ensuring that students receive personal finance education.

The bill signed by Governor Tony Evers on Wednesday mandates that high school students in Wisconsin take a personal finance literacy course to graduate, starting with the class of 2028, which could make the state the next to earn an "A" grade from the Center for Financial Literacy.

Evers emphasized the importance of financial literacy in preparing kids for their future success as adults, stating in a press release, "We must ensure our children possess the necessary tools and skills to make sound financial and budgeting decisions."

CNBC will air the "Cities of Success" special featuring Nashville on Dec. 6 at 10 p.m. ET/PT.