Cash News
KALAMAZOO, Mich. — A new graduation requirement for Michigan high schoolers is giving students a head start on learning how to manage money with financial literacy courses.
Section 380.1278a of the Revised School Code says that starting with students entering the 9th grade in 2024, a 1/2 credit personal finance course will be required in order to receive a high school diploma.
While many high schools already offer such courses as an elective, this requirement will focus the curriculum content on topics such as budgeting and saving, financial investing, paying taxes, and using credit, which is one of the most common financial mistakes people make early on, according to Western Michigan University Professor Todd Mora.
“Nothing says adulthood like managing money,” Mora said. “Unfortunately, in the U.S., there are a fair number of adults who don’t have that capability, which is a problem we need to work on.”
Mora serves as the program manager for the Sanford Center for Financial Planning and Wellness, and also heads WMU’s Dollars and Sense summer camp with the goal of teaching students how to understand and apply basic personal finance concepts.
“The earlier you start, the greater the ability to compound or add on to the knowledge of students in the area of finance. If you start early, you can add to that every year and help students after they graduate so they are in a better place than adults that are out there currently,” Mora said.
Mora also encourages parents of students in all grades to start the learning about finance at home.
“Talk to your kids about finance, talk about ‘what is insurance, how do you manage a budget, what bills do you pay,'” Mora said. “Additionally, help kids recognize some of the mistakes you made when you were young.”
News Channel 3 asked Mora which year he suggests for students to fulfill their personal finance requirement, and he said that sophomore and junior years are the most effective for students to be able to experience actually applying what they have learned before they graduate high school.