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State Celebrates First Grads Required to Pass Financial Literacy

State Celebrates First Round of Graduates Required to Pass Financial Literacy Course

This year is the first year that students throughout the state of Virginia have had to pass classes in economics and personal finance in order to earn their diploma, joining only twelve other states in requiring financial literacy education for all.

As of right now, only a handful of states require their students to learn about financial literacy through public education, and as a result it has come to recent national attention that students are being put at a disadvantage for not knowing much about personal finance.

"Studies from organizations like the Jump$tart Coalition indicate that the average American doesn't have enough financial education -- or at least doesn't understand how to apply this knowledge in the real world," said DailyFinance.com

Adults who could have used financial literacy education feel uncertain about their financial stability, freedom, and ability to retire. Not to mention does not help the huge consumer debt problem America currently faces.

Though only twelve states are currently requiring students to learn about financial literacy, the good news is that this is already a huge improvement from last year.

In 2014, according to the Huffington Post, only four states required students to take personal finance classes to graduate.

According to HamptonRoads.com, Virginia students are reacting positively to the requirement. "Some students say it’s already changed their financial behavior. Amaya Howell, a sophomore at Princess Anne, said she’s less likely to use her debit card for expensive purchases. Tommy Sugg, a senior, said it helped focus his search for college aid on scholarships and interest-free loans."

Moreover, a study released earlier this year examined some of the few states that require financial literacy education and found "three of the 12 other states with personal finance and economics requirements – registered 'notable improvements' in the credit scores of young adults, according to the Financial Industry Regulatory Authority’s Investor Education Foundation," the article said.

Read the full story here and comment below.

Article by Nicole Gorman, Education World Contributor

06/15/2015

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