To what extent do grade levels and the requirement of an economics course in high school impact the financial literacy levels of students in the United States?

Abstract

Young adults’ financial literacy levels are on a steady decline. In response, more schools in the United States are beginning to incorporate financial education into their curriculums. This study aimed to answer the question, “To what extent do grade levels and the requirement of an economics course in high school impact the financial literacy levels of students in the United States?” This paper augmented previous research by examining the relationships between subjective and objective financial literacy levels based on various educational parameters. Analyzing these variables may provide more effective approaches to impact young adults' future financial behaviors through education. A review of literature on these topics suggest mixed results as to whether financial education improved students’ financial behaviors. However, findings within this study indicate that high school students of upper level grades displayed a stronger positive correlation between their objective and subjective financial literacy levels compared to students of lower level grades. Furthermore, research showed that improving the quality and availability of financial education curricula such as economic courses may help increase students’ knowledge on financial topics.