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National Endowment for Financial Education

Posted at 8:50 AM, Jan 06, 2020
and last updated 2020-01-06 08:50:09-05

Financial literacy is an important and necessary life skill. While we don’t widely see it in every classroom, it has been a formal part of the American education system for more than a century and momentum is building as more states adopt mandates to require financial education in high schools. Recent research reinforces the benefits of state-mandated financial education and how it leads to families and students making better decisions about how to borrow for college.

According to a NEFE-funded study, students in states where financial education is required to graduate from high school end up making better financial aid decisions as college freshman, moving from higher-cost to lower-cost borrowing options. Mandated financial education increases applications for grants and federal aid, keeps overall borrowing balances down, and decreases credit card balances.