Should financial literacy be mandatory in high school?

My grandfather was the sole bread earner for a family of 6 at the age of nineteen. Imagine he was barely 2 years older than me and he was already shouldering the responsibility of his young siblings and his parents. He had to make tough choices- like taking up a career in the merchant navy that made him stay away from family for months in the sea. He was being paid in foreign currency- so he had to figure out the exchange rates and the proper way to transfer and save his money without violating laws. And above all, he was paying taxes. He did all of these things when he was just 19, only a couple of years older to me.

When I listen to his stories, I feel humbled. I grew up in a well-provided-for household and never had to worry about money. Food was always in abundance and all our necessities were more than adequately met. So I was happy living my carefree life without worrying about a single dime. Then it occurred to me, what will happen when I go to college? I will have to manage all my financial responsibilities. I will probably take up a job and I will have to pay taxes. How will I manage my finances? Nobody has prepared me for it.

High schoolers spend so much time in school going through rigorous coursework. Outside that we pursue our hobbies and extracurriculars. I played basketball and worried about Stephen Curry and the Warriors. Money or financial management was never my top priority. I can do higher math like algebra, but I don’t know how to compute taxes. But in just a few months, when I start attending college, I am expected to manage my monthly budget, my student loan and my credit card debt. I worry that I might make wrong financial decisions that can have poor long-lasting consequences. For example, knowing how credit cards work can prevent someone from accumulating high-interest debt. Understanding the importance of saving early can help build long-term financial security. These are not optional life skills — they are essential.

That’s why I think it is very important that we make financial literacy mandatory in high school.

What is financial literacy?

Financial literacy is an important life skill. More than just understanding money — it’s about making informed decisions. Learning skills like budgeting, saving, investing, and understanding interest rates and taxes can help students become independent and responsible adults.

Here is what research has shown:

• Only 49% of US adults have shown adequate financial literacy in 2025 and that number hasn’t changed much since 2017.
• Women have shown significant lag in their financial knowledge compared to men.
• Gen Z correctly answered only 38% of the indexed questions, on average, in 2025.

What’s unsettling is that in functional areas like comprehending risks, Gen Z has scored lower than the older generation. That explains why my grandfather was financially wiser than I am, even without formal education.

Why does Financial Literacy Matter?

Studies have shown that adults with low financial literacy are twice as likely to be in debt and five times more likely to lack emergency savings. For example, knowing how credit cards work can prevent someone from accumulating high-interest debt. Understanding the importance of saving early can help build long-term financial security. Similarly, learning to invest securely can boost their confidence. A recent study found that high school financial education graduation requirements, on average, led to higher credit scores and reduced rates of credit delinquencies.

California is one of the US states that have taken proactive measures. California Assembly Bill 2927 (AB 2927), signed into law in June 2024, mandates that all California public high schools and charter schools offer a stand-alone, one-semester personal finance course starting in the 2027–28 school year. It becomes a mandatory high school graduation requirement starting with the class of 2030–31.

The curriculum should include instructions on:

• Banking, saving, and avoiding unnecessary fees
• Budgeting and managing everyday expenses
• Credit, debt, and credit scores
• Student loans and financing higher education and careers
• Investing, retirement savings, and wealth-building tools
• Pathways to college, careers, and apprenticeships
• Learning about scholarships, merit aid, student loans, and California Kids Investment and Development Savings Program (CalKIDS)- nation’s largest college and career savings program

Resources currently available to students:

There are plenty of resources available to students currently. Here are a few:

1. School courses:

• Introduction to Business and Entrepreneurship course that covers financial planning, budgeting, credit, and investing.
• Personal Finance with Business Applications

2. Next Gen Personal Finance (NGPF): Provides comprehensive, free, and engaging curriculum for educators.

3. Everfi: Offers interactive, digital financial literacy modules for high schoolers.

4. Schwab Moneywise: Provides workshops and tools aimed at teens.

5. Khan Academy: Offers free online courses covering foundational financial topics.

6. Junior Achievement of Northern California: Delivers volunteer-led, teacher-facilitated courses.

7. AI-powered high school financial literacy tools, such as Intertwined and Goalsetter, provide personalized education, interactive simulations, and 24/7 financial guidance.

Future Vision

Imagine a generation of young adults who leave high school knowing how to budget their first paycheck, understand their student loan terms before signing them, and start building credit without falling into debt. Imagine young women entering adulthood with the same financial confidence as their male peers. Imagine a Gen Z that outscores — rather than underscores — every generation before it on financial knowledge.

That future is not out of reach. It starts in a classroom.

My grandfather figured out exchange rates, tax laws, and international money transfers at nineteen with no formal education and no safety net. He learned because he had to. My generation has the opportunity to learn before the stakes are that high — and we should take it. Financial literacy won’t make every decision easy, but it will mean that when the hard decisions come, we won’t be facing them completely unprepared.

California has already taken a step in the right direction with AB 2927. But a law that takes effect in 2030 helps students who are in elementary school today — not the high schoolers sitting in classrooms right now wondering how they’ll manage a credit card in September. The resources exist. The research is clear. The only thing missing is urgency.

We owe it to the next generation to make financial literacy not an elective, not an afterthought, but a foundation — as essential as algebra, as universal as history, and far more immediately useful than either.