The financial literacy standards are designed for high schools and span lessons in five major topic areas. They are based on guidance developed by the Council for Economic Education and Jump$tart — which advocate for personal finance education — as well as input from teachers, students and financial literacy experts, according to officials.
Many communities in D.C. have long asked that schools provide comprehensive financial education for their children. Christina Grant, the superintendent of education, said it “empowers” students to plan for their futures.
“As our students embark on their post-high-school journeys, whether pursuing higher education or entering the workforce, a solid grounding in financial literacy is an important bedrock for navigating the complexities of making smart financial decisions,” she said. The Council for Economic Education estimates that 23 states require students to take a personal finance course to graduate.
Studies have shown that high school graduates who received instruction in personal finance had lower loan-default rates and higher credit scores than those from neighboring states without such classes.
Officials will accept public feedback on the standards through Jan. 10, meaning they will probably undergo more changes before the school board determines whether to introduce them to classrooms for the 2024-2025 school year.
But, for now, these are topic-level summaries of what students can expect. The complete set of suggested standards can be found on the Office of the State Superintendent of Education’s website.
Students will explore different employment, benefits and compensation models. They will compare wages across careers and understand the factors that can affect how much money a person earns. Teens will learn about the purpose of taxation — and how and when to complete their taxes.
Kids will be taught how to budget and make informed purchasing choices. They will also unpack the “historical, political, economic and geographic factors” that affect access to certain goods and services, such as medical care and housing.
Students will unpack generational wealth and how its presence or absence can affect a person’s life. They will compare different types of savings accounts and discuss retirement planning. Students will also explore how inflation and deflation can shape their savings, and they will analyze the financial risks associated with services such as stock-trading apps and cryptocurrency accounts.
In this section, teens will gain an understanding of the different ways to invest money. They will discuss the barriers to saving for retirement, how to manage investments and why companies issue stock.
This section of the standards is dedicated to making sure students have a grasp of the risks and benefits of borrowing money. They will explore factors such as down payments and interest rates, understand credit scores and compare different methods of paying for college. Students will also be asked to consider the reasons and risks for services such as payday loans, check cashing services and instant tax refunds.
Students will analyze different types of insurance, the factors that affect premiums — such as co-payments and deductibles — and compare plans. They can expect discussions about private versus government insurance and how people determine the kind of insurance they need.
