High School Personal Finance Course Mandates and Financial Independence of Young Adults

• Published in: Financial counseling and planning 2025-01, p.JFCP-2022-0059.R1
• Main Authors: L'Esperance, Madelaine, Collins, J. Michael, Robb, Cliff
• Format: Article
• Language: English
• ISSN: 1052-3073; 1947-7910
• DOI: 10.1891/JFCP-2022-0059

Policymakers in many states have recently mandated that financial education be taught in high schools in the United States. This study examines potential effects of state high school personal finance course requirements on young adults’ financial independence. Using variation between states and over time, this study estimates the financial independence of young adults exposed to state-mandated financial education using the 2005–2019 Panel Study of Income Dynamics Transition into Adulthood Supplement. Descriptive analysis shows that financial independence item scores are lower among students who graduated in states with high school personal finance course mandates relative to young adults who were not exposed. Difference-in-differences estimation indicates that personal finance course mandates in high school are not significantly related to the extent to which young adults report being financially independent overall. These findings highlight the dynamic process of financial development and the limitations of financial education as a way to influence financial well-being.