Hoosier lawmaker wants financial literacy class for high schoolers

An Indiana lawmaker wants to see high school students learn a critical life skill before graduating.

State Rep. Dave Hall, R-Norman, has filed House Bill 1281, which would require students in the state’s public, private and charter high schools to pass a financial literacy course before they graduate.

The class would cover such topics as managing bank accounts, proper spending and savings techniques, credit management and how to complete such paperwork for loans and tax returns.

“Having basic financial knowledge and skills, like creating a budget, using a credit card or applying for a loan, are key components to being a successful adult,” Hall said. “Equipping young adults with a basic understanding of money management will help them avoid potential pitfalls and live a much more productive and successful life.”

If passed, the law would take effect for the graduating class of 2027, which will be freshmen entering high school in the fall.

According to Next Gen Personal Finance, less than a quarter of students who graduated high school in 2022 took a personal finance or financial literacy course before graduating.

Such a class was a requirement in only eight states last year. However, that number is about to nearly double as seven states have since passed laws to make it a mandatory part of the curriculum. That includes Ohio and Michigan.

Last June, Michigan Gov. Gretchen Whitmer signed a bill into law that takes effect for ninth graders in 2024. In November 2021, Ohio Gov. Mike DeWine approved a bill that requires the course in his state, with students needing to complete the course starting with the class of 2025.

Indiana does already have a personal finance requirement for students. A 2009 law requires students to reach a national financial literacy standard by the time they graduate. However, that could be attained if the school holds a seminar, according to the American Public Education Foundation.

In The Nation’s Report Card on Financial Literacy, the foundation gave the Hoosier State a grade of B.

“Indiana could improve its grade to an “A” by incorporating the Financial Literacy Education High School standards into a required stand-alone personal finance course,” the foundation said in its 2021 report.

Hall isn’t the only Hoosier lawmaker who wants to see the state’s high school students pass a financial literacy class. State Rep. Martin Carbaugh, R-Fort Wayne, and Assistant Majority Floor Leader Joanna King, R-Middlebury, have filed similar bills in the House, as has Assistant Majority Floor Leader Mike Gaskill, R-Pendleton, in the Senate.