Financial literacy has long been a problem for new generations these days. Millennials have a different take on retirement and financial savings for the future. And this is all due to a lack of financial education courses before graduating from high school. Michigan Governor Gretchen Whitmer knows how crucial personal finance education is and is mandating that the state include financial education courses before high school graduation.
This is to equip the younger Michigan constituents with financial literacy to prepare them for volatile events and occurrences.
Michigan is the 14th state to mandate personal finance education before high school graduation. Whitmer signed HB 5190 requiring this, which passed the state’s Senate and House of Representatives with bipartisan support.
Whitmer admits that as a mother, she wants every newly-graduated kid from Michigan to enter another phase of their lives with diverse skills and knowledge, which includes financial literacy.
She said, “I am proud to sign this bipartisan bill requiring all public school students to take a personal finance course.”
She added, “Every young Michigander deserves to know how to budget, save, and invest their money wisely so they can get off a great start after high school, whether they go to college, start working or open a small business.”
Michigan Rep. Diana Farrington, who sponsored the bill, also said that this course requirement would help increase the chances of success for Michigan students.
She said, “Establishing a core class dedicated to financial literacy has been a years-long labor of love for me, and I’m truly excited for the students who will fly to new heights through a fuller, richer education.”
Half-credit course requirement
This new rule requires Michigan students to undergo a personal finance half-credit course before they graduate from high school. It can be language, arts, math, or another language course other than English.
And this requirement will go into effect for eighth-grade students in the school year 2023 to 2024.
The state’s House of Representatives first passed this bill in December, garnering a 57 to 43 vote. After it was amended and sent to Senate, the House of Representatives had to re-vote on it before it was sent to the governor. The bill passed in May.
The Michigan Credit Union League, the Michigan Bankers Association, and the Michigan Council for Economic Education supported the new legislation. Moreover, two of the most significant state school districts supported the bill, the Wayne County Regional Educational Service Agency and Oakland Schools.
A long time coming
Personal finance for Michigan has been a long time coming since 13 states had already mandated this requirement from schools. Georgia and Florida were the most recent states to pass this bill with bipartisan support.
This is a growing trend that’s not slowing down anytime soon. Due to this legislation, over 25 percent of high school students have more knowledge on financial literacy this year. According to the Next Gen Personal Finance’s 2022 State of Financial Education report, 33 percent of students will be assured of personal finance courses once this bill passes.
