Financial literacy and economic awareness can play a vital role in one’s day-to-day choices, from a teen debating how much money to spend on the latest trends and gadgets to helping an aspiring homeowner decide what house to buy. As schools emphasize mathematics, science, history and language arts as learning fundamentals, studies have shown that a strong foundation in economic values also has long-term benefits.
As organizations and education systems continue to advocate for financial literacy, the District is moving toward economic educational empowerment. In March, the D.C. State Board of Education voted to adopt financial literacy standards, which were then developed by the Office of State Superintendent of Education (OSSE) to be utilized as an elective course for high school students.
D.C. Public Schools (DCPS) have adopted these new financial literacy standards to ensure economic prosperity for the next generation of leaders, entrepreneurs and homeowners emerging from the District.
“Financial literacy skills are critical for D.C. students to be fully prepared to pursue and succeed on the life path of their choosing,” said State Superintendent Dr. Christina Grant in a statement. “These Financial Literacy Standards ensure that all our high school students have access to the knowledge and skills needed to make strategic and well-advised financial decisions as they consider their future, such as pursuing higher education or entering the workforce. We are proud of the work that went into the development of these standards and grateful for the partnership and collaboration of the State Board of Education to formally adopt these standards.”
As of the 2024-25 academic year, District high schoolers have the opportunity to take a standalone, elective course where they’ll obtain knowledge and skills across five content sections: Earning Income, Saving and Investing, Spending, Credit and Managing Risk.
According to OSSE’s official report, in addition to educating students on individual financial circumstances and the influence of personal and systemic factors, the standards cover various survival tools, and will leave students with the necessary skill set to:
- Identify opportunities in Washington, D.C. for financial support in higher education and career growth.
- Investigate ethical dimensions of different types of investments and consider environmental factors for large purchases, such as vehicles.
- Analyze the influence of generational wealth and inherited assets on personal savings and investing.
- Understand the various forms and functions of taxation and requirements for paying taxes.
- Create a budget based on different and changing individual inputs, constraints and goals.
- Analyze factors which impact individual housing decisions, including individual preferences, discriminatory practices, costs, tax credits, budgets and housing availability.
- Compare and consider the impact of different types of insurance.
Unlike Virginia high schools and across some districts in Maryland, a financial literacy course is not required to graduate in D.C.; however, the newfound curriculum reflects a growing demand to expand financial education nationwide.
“There’s been a real move to focus on financial literacy, particularly post-pandemic. Given the way that the economy is changing so fast, the idea of being able to adapt, pivot and sort of see new opportunities around corners is really an important perspective in every area of life now, and certainly in the kind of economy that, as you know, has been developing globally,” said Jackie Kraemer, director of Policy Analysis and Development at the National Center on Education and the Economy (NCEE).
Kraemer noted the benefits of teaching financial literacy early.
“[Financial literacy] empowers [students] to be better decision-makers… [and] think about how to plan for [the future], which are the kind of capacities that we really want to develop in our students so that they’re prepared to navigate all the changes in the world and the changes in their own lives,” she said.
Reaping the Benefits of a ‘Better, More Equitable Education System’
NCEE researches worldwide academic institutions to provide district and school leaders across the country with skills, information, and resources to establish high-performing learning systems, crafting transformative policy reform that has helped shape new perspectives on education.
According to Kraemer, the organization’s findings, internationally and within the U.S., have emphasized the importance of realigning educational goals to build a better, more equitable public education system.
“The E in our name (NCEE) is really about looking at…how the education system is designed to be aligned with economic and societal goals, really thinking about how to ensure that students are given a path to economic mobility through education,” she explained. “We are honing in on what the learning systems look like, and I think the focus on financial literacy and economic education that you see as a real area of interest in the United States recently, is reflecting some of the discussions about expanding the purpose of education.”
Similarly, the Council of Economic Education (CEE) recognizes the role of school curriculums in building a strong ecosystem, prioritizing advocacy and professional development training to help bridge the divide in financial literacy.
While CEE research shows an unprecedented growth of a 12-state increase to pass personal finance requirements since 2022 (36 states have personal finance requirements, with a little more than half for economics), there is still a noticeable 14-point gap concerning financial education for students in states who don’t require the course to graduate.
But, financial education is not just subject to the educators – the tutelage starts at home, preferably “as little as you can get them,” said CEE’s president, Nan J. Morrison.
“When you’re little, you start to see things happening, you start to interpret them, you store them away, and then when you get into high school, you’re ready to think about broader things – budgeting, investing…the power of compound interest, so you’re in a better position to understand other kinds of things…for an adult point in time.”
Financial Literacy Key When Looking at ‘The Bigger Picture’
Morrison told The Informer, financial literacy decisions are about “the bigger picture” and can impact people’s livelihoods down the line, vocationally and personally.
Research from a Finance and Economics Discussion Series – published through the Federal Reserve – shows 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. Additionally, financially literate students who pursue higher education make up a greater percentage of scholarship recipients and hold better rates on loan financing deals.
“Every time you have this knowledge, it applies to a whole bunch of things that you might decide to do. All of those things go into developing your own human capital, but also helping you to make better decisions in your business life. Understanding where the economy is going, understanding what’s happening in the world, that can help you to understand the world better, and make those decisions more effectively for yourself, your community and your country,” Morrison said.
In cities like the nation’s capital, where economic development thrives on entrepreneurship, having access to remunerative tools and resources is particularly imperative. Small businesses, often deemed the “backbone” of the country, brings revitalization to communities and generational wealth to families, both elements that can lead to economic equity.
Morrison commends entrepreneur-driven cities for advancing capital growth, and reaffirms the power of investing in education to forge a better path for future generations.
“I think that when you marry up financial and economic education, it’s just what you’re thinking about in terms of your life goals,” she said. “You can usually make that work – not always, not for everyone – but you have a much better shot at having the life you want to live if you have this information.”