Three Essential Insights on Financial Education Gaps in U S High Schools

Financial literacy remains a critical skill for navigating adult life, yet nearly half of U.S. adults struggle to demonstrate basic financial knowledge. A 2025 assessment revealed that only 49% of adults could show financial literacy, a shortfall that leads to real hardships. Adults with low financial literacy are twice as likely to face debt constraints, three times more likely to be financially fragile, and eight times more likely to spend over 20 hours a week worrying about money. This troubling reality has pushed many states to require personal finance education in high schools. Yet, as these efforts grow, some surprising truths about financial education have emerged. This post explores three key insights about the current state of financial education in U.S. high schools and what they mean for students nationwide.

High school students learning personal finance in a classroom

Access to Financial Education Drops Sharply in States Without Requirements

One of the most striking findings is the vast difference in access to financial education between states that require it for graduation and those that do not. In states without a mandate, only about 10% of students take a personal finance course. This low participation rate means most students miss out on essential money management skills before entering adulthood.

The problem worsens when looking at schools with predominantly Black and Hispanic student populations. In these schools, just 7% of students take a personal finance course in states without a requirement. This rate is half that of students in other schools within the same states. The gap highlights a serious equity issue: students who could benefit most from financial education often have the least access to it.

This disparity risks continuing cycles of financial hardship. Without early education, students may enter adulthood unprepared to handle credit, budgeting, or saving. This lack of preparation can lead to higher debt levels and financial fragility, especially in communities already facing economic challenges.

Teacher Training Makes a Huge Difference in Student Outcomes

Offering a personal finance course is only part of the solution. The quality of instruction plays a crucial role in how much students learn. Research shows that students taught by teachers who received thorough training in financial education improve their knowledge scores three times more than those taught by untrained teachers.

This finding underscores the importance of investing in teacher preparation. Well-trained teachers can deliver lessons that are clear, relevant, and engaging. They can also better address students’ questions and real-life concerns, making the material more practical and memorable.

For example, a teacher who understands credit scores and budgeting can provide concrete examples and activities that help students apply concepts to their own lives. Without this expertise, courses risk becoming theoretical and less effective.

States and school districts that require personal finance education should also prioritize professional development for teachers. This approach ensures that students receive not just access to courses but high-quality instruction that truly builds financial skills.

Financial Education Needs to Be More Than a Single Course

Another important insight is that financial education should not be treated as a one-time class or a box to check. Financial literacy develops over time and benefits from ongoing exposure and reinforcement.

Some schools offer personal finance as a standalone course, often in the final year of high school. While this is a good start, it may not be enough to build lasting skills. Students need opportunities to practice financial decision-making throughout their education.

Integrating financial topics into other subjects like math, economics, or social studies can help reinforce key concepts. For example, math classes can include lessons on interest rates and loan calculations, while social studies can cover economic systems and consumer rights.

Additionally, schools can provide extracurricular programs, workshops, or partnerships with community organizations to deepen students’ financial knowledge. Real-world experiences, such as managing a mock budget or participating in financial literacy competitions, make learning more engaging and practical.

By embedding financial education across multiple touchpoints, schools can better prepare students for the complex financial decisions they will face as adults.

Financial education in U.S. high schools is improving, but significant gaps remain. States without graduation requirements leave many students, especially those in minority communities, without access to vital financial skills. Teacher training dramatically boosts the effectiveness of financial education, yet it is often overlooked. Finally, treating financial literacy as a single course limits its impact; ongoing learning opportunities are essential.

Sources

Hedger, J. (2025, December). Advancing high schoolers’ financial literacy. Policy Update, 32(6). National Association of State Boards of Education.

Next Gen Personal Finance. (2023, March). NGPF’s 2023 state of financial education report.

The Financial Literacy Group. (2021, April). Game changer: The evaluation of the Jump$tart Financial Foundations for Educators professional development program.

Yakoboski, P. J., Lusardi, A., & Sticha, A. (2025). Financial literacy and retirement fluency in America: Findings from the 2025 TIAA Institute-GFLEC Personal Finance Index.