DALLAS, June 14, 2023 /PRNewswire/ — A groundbreaking report released today by the National Financial Educators Council (NFEC) reveals a glaring deficiency in financial literacy instruction across every state in the US. The report highlights that not a single state meets the basic educational standards required by other subjects , painting a worrisome picture of the current state of financial education in our nation.
While K-12 education standards have undergone continuous reform and updates since the 1980s, the guidelines in place today fail to include financial literacy as a core subject. Instead, the focus remains on traditional subjects such as English/Language Arts, Social Studies, and STEM, which only benefit a small percentage of high school graduates as they navigate the real world. Conversely, financial literacy education has the potential to benefit 100% of high school graduates throughout their lives. Yet, comprehensive standards for financial education mandates are yet to be implemented in the US.
The NFEC asserts that financial education should be held to the same rigorous standards as other subjects, aligning personal finance instruction with educational best practices. Students need to acquire skills in earning income and managing money to achieve lifelong success. These skills should be imparted through rigorous teaching methods that foster higher-level thinking skills and ensure long-term retention. Qualified and competent teachers, high-quality curriculum resources, and appropriate scaffolding are essential components. Furthermore, assessments should evaluate not only content knowledge but also students’ ability to apply that knowledge to real-world decisions.
Vince Shorb, CEO of the NFEC, emphasizes, “All state financial literacy mandates fail our children. Applying at least basic educational standards to financial literacy programming is a matter of common sense. Financial education is a topic that every individual is required to utilize every day of their lives. It significantly impacts people’s success and security. Educators, assessments, and materials should meet standards that are at least equal to those required for other subjects taught in schools.”
The NFEC’s Policy & Framework Standards for High School Financial Literacy Education report presents a comprehensive framework for policymakers that establishes rigorous educational standards for financial literacy. These standards encompass instructor qualifications, outcome measures, resources and educational methodologies, age-appropriate scaffolding, alignment with cognitive development stages, parental involvement, and ongoing education.
The framework serves as a catalyst for advocating for robust educational standards specifically tailored to financial literacy programs. The NFEC hopes that this report represents the first step towards elevating financial education to a top-priority status for policymakers, schools, and advocates nationwide.
The NFEC urges policymakers, educators, and concerned citizens to join forces in addressing the pressing need for comprehensive financial literacy standards. Together, we can equip future generations with the necessary knowledge and skills to navigate the complexities of personal finance and achieve lifelong financial well-being.
The National Financial Educators Council is a leading provider of financial education solutions that aim to empower individuals and organizations with practical knowledge and skills to make informed financial decisions. Through cutting-edge resources, training programs, and advocacy efforts, the NFEC is dedicated to promoting financial literacy and enhancing financial literacy across all states . The NFEC is an IACET Accredited Provider and a Certified B Corporation.
SOURCE National Financial Educators Council