The content should be comprehensive and related to national standards. Economists and financial education experts have developed a set of standards that provide a framework that schools can adapt to their needs.
Economists and financial education experts have developed a set of standards that provide a framework that schools can adapt to their needs. The Council for Economic Education developed national standards for financial literacy that explain what students need to learn and provide benchmarks of what students should know at different grades. Research published by The World Bank Group authors Tim Kaiser and Lukas Menkhoff reveal that financial education does help increase financial literacy, and the more individuals are exposed to information, the stronger their understanding.
There are a lot of topics that can be covered within personal finance. The best scenario is a curriculum that covers all six national standards through a dedicated personal finance course.
Illinois had previously incorporated personal finance into consumer education standards. These standards were based on three main areas: installment purchasing, budgeting, and comparison of prices. In 2015, these standards were expanded to include debt, higher education student loans, and identify-theft security.
Additionally, an Illinois Task Force on Civic Education was created by a public act that recommended revising the state’s Social Studies Standards, which had been last updated in 1997. From this recommendation, the Social Science Standards Revision Task Force was convened by a nonprofit foundation. Members of the task force included teachers, university representatives, and the Center for Economic Education. In 2016, the Department of Education approved the revisions to the Social Science Standards. These new standards are based on the national standards.
Illinois State Standards |
National Standards |
| Analyze the costs and benefits of various strategies to increase income. | Earning Income |
| Explain how to make informed financial decisions by collecting information, planning, and budgeting. | Buying Goods and Services |
| Explain how time, interest rates, and inflation influence saving patterns over a lifetime. | Saving |
| Analyze costs and benefits of different credit and payment options for goods and services, the role of lenders, and interest. | Using Credit |
| Evaluate risks and rates of return of diversified investments. | Financial Investing |
| Analyze the costs and benefits of insurance, including the influences of an individual’s characteristics and behavior. | Protecting and Insuring |
Cited from: The Illinois Social Science Standards
The revised standards were accepted by the Illinois State Board of Education, and school districts were required to begin implementing the new standards by the 2017–18 school year.
Note: While the revised standards do not include a specific course requirement, the process provides an example of a state prioritizing getting personal finance fundamentals into the classroom.
