Policy Proposal: Mandatory Financial Literacy Education in Schools
Problem Statement
The U.S. education system does not adequately prepare students for real-world financial responsibilities. Many young adults graduate high school without understanding credit, taxes, loans, budgeting, interest rates, or real-life economics—leaving them vulnerable to debt, financial mistakes, and long-term instability.
Without early financial education, many individuals misstep in early adulthood, falling behind on payments, accumulating debt, and struggling to recover. It is time to mandate financial literacy education in schools to equip students with essential money management skills before they enter adulthood.
Proposed Solution
Mandate financial literacy education as a graduation requirement in all public high schools. This program would provide students with practical financial knowledge before they enter adulthood, ensuring they can navigate personal finance, credit systems, and real-world economics.
Key Curriculum Components:
1. Understanding Credit & Loans
- How credit scores work & how to build good credit
- Credit card interest, fees, and how to avoid debt traps
- Different types of loans (student, auto, mortgage, personal)
- The dangers of predatory lending & payday loans
2. Taxes & Employment Basics
- How to file taxes & understand tax brackets
- W-2, 1099, and different employment tax structures
- Deductions, write-offs, and how to maximize refunds
- Social Security, Medicare, and how payroll taxes work
3. Real-Life Budgeting & Money Management
- How to create and stick to a budget
- Managing bills, rent, and monthly expenses
- Emergency funds, savings strategies, and investing basics
- How inflation and cost of living impact personal finances
4. Banking & Interest Rates
- How checking & savings accounts work
- Understanding interest rates on loans and savings
- The impact of inflation on savings & purchasing power
- Fraud prevention, identity theft protection, and digital banking safety
5. Consumer Rights & Financial Protections
- The Fair Credit Reporting Act (FCRA) and consumer rights
- How to dispute credit report errors & protect financial health
- Tenant rights & responsibilities for renting an apartment
- Understanding insurance (health, auto, renters, life)
Implementation Plan
- Curriculum Integration: Financial literacy courses would be a required semester-long course in high school (Grades 11-12).
- Real-Life Applications: Students will complete hands-on assignments, such as filing a mock tax return, creating a personal budget, and comparing loan interest rates.
- State & Federal Collaboration: The program will align with U.S. Department of Education guidelines and be incorporated into state graduation requirements.
Expected Benefits
Reduces Financial Hardships – Fewer young adults falling into debt traps
Prepares Students for Adulthood – Ensures they enter the workforce with practical knowledge
Strengthens Economic Stability – More informed consumers mean a healthier economy
Reduces Student Loan & Credit Card Debt – Early education prevents costly mistakes
Who Would Oversee This?
- U.S. Department of Education – To mandate curriculum inclusion nationwide
- State Boards of Education – To enforce financial literacy as part of public school graduation requirements
- Local School Districts – To implement and adapt curriculum to meet regional financial concerns
Why This Matters
We equip students with history, algebra, and science—but not the fundamental skills they’ll use every day in adulthood. A lack of financial literacy leaves many young adults struggling with debt