‘A life skill:’ Pennsylvania now requires students to learn financial literacy
Pennsylvania new financial literacy requirement
PENNSYLVANIA (WJAC) —Students are headed back to school soon and while there are not too many changes to the curriculum at the state level, there is one big topic that students will notice.
It’s goal? To set students up for a better financial future.
A new mandate from the state is requiring schools throughout the commonwealth to now be teaching financial literacy to students.
It’s a change that education leaders are applauding.
“You always hear the main things are reading, writing, and math, but this is something that will stick with any student going forward in life,” says Cambria Heights superintendent Ken Kerchenske.
At the high school level, students will be required to take a half a credit standalone course in order to graduate.
“It’s a life skill, life function to be able to manage your finances,” says Altoona Area superintendent Brad Hatch. A lot of our kids get to the point where they’re in adult life or they’re very quickly out of the home and they’re living independently; they need to be able to have these skills.”
The state has identified nine areas that the class must cover, from the basics to more advanced topics.
“Managing money, budgeting; What it would look like to have a mortgage, what it would look like to take out a loan on a vehicle; Building credit scores, all of the things that we as adults experience on a daily basis.”
What does it mean to become a business owner?
What does it mean to be self-employed or a gig worker?
The new requirement has also gained the approval of economists.
“I think financial literacy is a basic skill, a skill that allows us to understand the world around us.”
Stanford professor Annamaria Lusardi is one of the world’s leading experts in financial literacy.
“High school is an ideal time indeed to provide this education because this is how we learn about any topic, right?”
Lusardi says studies show the difference between students who have taken these financial classes, and those who haven’t.
“We see that students are much more likely to pay off their student loans and other loans, they increase their FICO scores, they are less likely to default on a variety of debt that they might carry.”
All the educators we spoke with say the requirement was not only needed, but long overdue.
They say students throughout the state will now be getting the tools they need for the future.
“It’s setting them up for success in terms of making good decisions with the money that they make and putting them in the best position to support themselves and their family for the rest of their lives.”
