What Alabama's new financial literacy law means for students

1 year ago 27

A new bill, just signed by Gov. Kay Ivey, will require students to complete an updated financial literacy and money management course before they graduate high school."You need to understand the contracts you're signing, credit cards applying for, and the loans you're signing, so you make wise decisions. We want all students financial independent. To do so, they have to make wise decisions," said Alabama State Superintendent of Education Dr. Eric Mackey. Dr. Mackey tells WVTM 13's Ian Reitz that a course on finances is already required, but this new requirement modernizes the class. "The course is already there. It's part of our career prep course. But what we'll be doing, and we required that for a long time and it has financial literacy component, we will be looking to make sure all components are included and beefing it up some to make sure students are ready for the future." Dr. Mackey went on to say, "It's important that students understand the market system today. Things like using debit and credit cards, versus when I was in school we talked about how to write checks".High school students will learn about a variety of financial concepts, including the different types of bank accounts, how to balance a checkbook and the different types of loans offered. They'll also go over some money management skills, including credit card debt and credit scores. The class will dive into taxes, interest rates, investing and insurance policies. Dr. Mackey says the State Department of Education will come up with standards and a financial literacy exam. Students will have to take and pass the class to graduate. The financial literacy exam will be used to measure how much they're learning and passing the test will not be required for graduation. Dr. Mackey adds that while his department will come up with the standards, districts will be able to add to them as well. Dr. Mackey says Alabama is currently ranked 5th in the nation for financial literacy. He hopes this revised course will help the state move up even higher in those rankings. The new financial literacy class will be offered and required during the 2024-2025 school year.

BIRMINGHAM, Ala. —

A new bill, just signed by Gov. Kay Ivey, will require students to complete an updated financial literacy and money management course before they graduate high school.

"You need to understand the contracts you're signing, credit cards applying for, and the loans you're signing, so you make wise decisions. We want all students financial independent. To do so, they have to make wise decisions," said Alabama State Superintendent of Education Dr. Eric Mackey.

Dr. Mackey tells WVTM 13's Ian Reitz that a course on finances is already required, but this new requirement modernizes the class.

"The course is already there. It's part of our career prep course. But what we'll be doing, and we required that for a long time and it has financial literacy component, we will be looking to make sure all components are included and beefing it up some to make sure students are ready for the future." Dr. Mackey went on to say, "It's important that students understand the market system today. Things like using debit and credit cards, versus when I was in school we talked about how to write checks".

High school students will learn about a variety of financial concepts, including the different types of bank accounts, how to balance a checkbook and the different types of loans offered. They'll also go over some money management skills, including credit card debt and credit scores. The class will dive into taxes, interest rates, investing and insurance policies.

Dr. Mackey says the State Department of Education will come up with standards and a financial literacy exam. Students will have to take and pass the class to graduate. The financial literacy exam will be used to measure how much they're learning and passing the test will not be required for graduation. Dr. Mackey adds that while his department will come up with the standards, districts will be able to add to them as well.

Dr. Mackey says Alabama is currently ranked 5th in the nation for financial literacy. He hopes this revised course will help the state move up even higher in those rankings.

The new financial literacy class will be offered and required during the 2024-2025 school year.

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