K–12 financial literacy requirements are finally gaining momentum across the United States, but it is up to each state to keep that progress moving forward.
Schools and parents must also work together to ensure younger generations develop the money-management skills needed for lifelong financial success.
The earlier they start learning, the more success they will have later.
JRN by Bauer 43:40, October 14, 2026
Preparing the Next Generation for Financial Success
Several years ago, we chuckled at a headline on a Forbes website page. It said, “How Stupid Can Our Offspring Be When It Comes To Money? Maybe As Stupid As We Are” (January 8, 2017). A compelling title sure, but this is no laughing matter. Personal finance is constantly evolving, so even the most proficient personal finance “expert” ten or twenty years ago, still may have to play catch-up to learn the latest innovations. (Please also see JRN 43:13.5 How Financially Literate Are You Really?)
Aside from understanding the latest innovations, even the most money-savvy among us can have trouble communicating the importance of savings and spending wisely to our children. Children are sponges – and they copy what they see. Ask yourself:
- Are you consistently doing what you want your children to emulate?
- Do you explain to your child why you make certain choices over others when shopping?
These things take practice but are important steppingstones in a child’s financial education. No one is born knowing the difference between wants and needs, for example, or the real-life consequences of frivolous spending. The earlier they can learn these lessons, the better their financial health will be going forward.
That is easier said than done. Especially when you consider that many parents are ill-prepared themselves, when it comes to financial literacy. These parents may believe their child will be taught reliable financial lessons in school. Unfortunately, for way too many students, that is not the case. In recent years, finally, the need for personal-finance education in the public school system has been recognized.
Personal finance education is under the spotlight, which is a good thing, producing a growing number of advocates and watchdogs. One we have reported on before is the American Public Education Foundation (APEF) (JRN 43:13.5).
Since 2019 (every other year), APEF has examined the policies and curriculum requirements of every U.S. State, the District of Columbia and Puerto Rico and assigned a letter grade. You can check out how your state fares today as well as how its grade has progressed since 2019 here: The Nation’s Report Card on Financial Literacy. Mississippi stands out. It has raised its score from a D in 2019 to a B in 2025. Alaska, DC and South Dakota also stand out, but for a different reason. They are all rated F and have been F consistently since 2019.
Most states have shown some improvement, which is APEF’s goal. But APEF doesn’t stop at the report card. It also provides ready-to-use resources for: states that need help establishing new standards and K-12 curriculum for teachers, animated videos for home and even articles to explain tough topics from compound interest to crypto.
APEF is a one-stop shop, but it is not the only scorekeeper. The National Financial Educators Council (NFEC) started about 20 years ago with humble beginnings, running small workshops wherever they could with the help of local partners. Over the years it expanded from youth to adult financial education. It did not take long for them to see the gaping holes in the education materials and a lack of basic principles and learning objectives.
The NFEC began producing its own materials, first for its own team, then for others. These systems were created intentionally to be able to replicate, track and measure. Today NFEC is an independent, accredited financial education provider and remains an avid champion of financial education.
Like APEF, the NFEC saw the need for minimum academic standards in personal financial education. 2026 marked the first year that NFEC released a comprehensive national evaluation of every state’s mandates for financial literacy education as compared to core subjects like math, science and English. The results were dismal. In fact, every state fell short of expectations. The best-performing state (Utah) had a score of just 16.7% (4 out of 24 criteria were met). These scores are not very encouraging, but at least they provide a baseline.
The Council for Economic Education (CEE) is another watchdog that conducts a biennial Survey of the States (sponsored by VISA) to determine where outreach and resources are most needed. This survey has been a key benchmark for assessing K-12 since it began in 1998.
The 2026 survey results showed:
22 states now require a course in economics to graduate high school (net down 4 from 2024);
39 states now require a stand-alone course in personal finance to graduate (net up 4 since 2024);
Three states replaced their economics requirement with the stand-alone personal finance requirement;
Otherwise, economics was folded into a broader social studies framework.
Eight fewer states require a stand-alone economics course for graduation than in 2020. That is a direct result of the growing attention on personal finance. It has shortsightedly, and perhaps unintentionally, steered some states away from economics and toward personal finance. As representatives from CEE put it (and we agree) teaching one without the other is incomplete; these courses should be taught together.
CEE and VISA were also founding members of FinEd50 Financial Education for America. FinEd50 wants financial education to be incorporated into K-12 education in all 50 states and is always looking for new members/advocates. Students, teachers and community members can get information here.
Finally, the National Endowment for Financial Education® (NEFE®) was originally formed in 1992 as the parent entity of the College for Financial Planning, Denver, CO (the creator of the standard-setting Certified Financial Planner certification). The Board of Trustees of the College recognized a need for financial education, so they transferred ownership, sold all assets and used the proceeds to start an endowment that funds the NEFE today.
In 2020, while watching the increased stress from the COVID-19 epidemic, NEFE® shifted its primary focus from personal finance education toward advancing research and facilitating collaborations with advocates and policymakers. Its 2026 National Report Card on States efforts to Improve Financial Literacy in High SchoolsTM found that:10 states already have earned an A grade and 19 are projected to by 2031. By 2031, 73% of public high school students are projected to live in a state that has at least a semester-long course requirement in personal finance.
A 2025 nationwide opinion poll from NEFE® found:
83% of U.S. adults believe their state should have at least a one semester personal finance course requirement;
82% said they wished they had been required to take one when they were in school.
These independent watchdogs are making our states accountable for the education of their youth, and we applaud them. It has been a long time coming.
If you are looking for places to help you with your children or to hone your own skills, these federal agencies all have useful tips and games to engage them (or you) while learning:
Consumer Financial Protection Bureau Money as You Grow (CFPB)
Federal Deposit Insurance Corporation’s Money Smart (FDIC)
Plus, hundreds of banks and credit unions have their own tools. We recommend you check with yours to see what they may have to offer.
We wish you all financial wellness.