Michigan high school students will soon be required to take a personal finance course as part of their curriculum. This move aims to equip students with the necessary knowledge and skills to make informed financial decisions in their adult lives. The course will cover topics such as budgeting, saving, investing, and understanding credit and debt. By making personal finance education mandatory, Michigan hopes to prepare its students for financial success and independence.
Michigan high schoolers now have a new graduation requirement that aims to equip them with essential financial literacy skills. This initiative ensures that students are well-prepared to handle money matters effectively.
Starting in 2024, students entering the 9th grade will be required to complete a 1/2 credit personal finance course in order to receive a high school diploma, as stated in Section 380.1278a of the Revised School Code.
According to Professor Todd Mora from Western Michigan University, the new requirement aims to focus the curriculum content on important financial topics such as budgeting, saving, financial investing, paying taxes, and using credit. He emphasizes that using credit is one of the most common financial mistakes people make in their early years. While some high schools already offer these courses as electives, the new requirement will ensure that all students have the opportunity to learn these crucial skills.
According to Mora, “Managing money is a clear sign of adulthood.” However, she also acknowledges that in the United States, there is a significant number of adults who lack this crucial skill. This is an issue that requires our attention and efforts to address.
Mora is the program manager for the Sanford Center for Financial Planning and Wellness at WMU. In addition, she leads the Dollars and Sense summer camp, which aims to educate students on fundamental personal finance principles.
“The ability to compound or add on to the knowledge of students in the area of finance is greatly enhanced when they start early. By starting early, students have the opportunity to continually build upon their understanding year after year. This not only benefits them during their academic years but also equips them with a solid foundation upon graduation, placing them in a better position than adults who may have missed out on this early start,” Mora emphasized.
Mora also urges parents of students of all ages to initiate financial education at home.
Mora suggests having conversations with your children about financial matters, discussing topics like insurance, budget management, and bill payment. It is also beneficial to share some of the mistakes you made when you were younger, helping them learn from your experiences.
According to Mora, it is most effective for students to fulfill their personal finance requirement during their sophomore and junior years. This allows them to apply what they have learned before graduating high school.
