New York Financial Literacy Standards
Every two years, the American Public Education Foundation (APEF) publishes a “report card” that grades each U.S. state based on its status of financial literacy education. Currently, earning an “A” grade requires a state to mandate that all high school students must pass a standalone personal finance class in order to graduate; and that the state has standards in place for financial education in grades K-8.
The 2023 report awarded New York a “D” grade for financial literacy instruction. The APEF claims the Empire State deserves this grade because, although there is a mandate that high school students take some financial education, that instruction is embedded in the required economics course. New York schools do not offer a standalone personal finance class. Further, the state’s K-8 Social Studies Framework has no financial literacy standards, meaning students are not guaranteed any rigorous financial education until their senior year of high school.
Although the NY legislature enacted a bill in 2021 requiring that the department of financial services website provide information to enhance consumer financial literacy and awareness, no legislation related to K-12 personal finance education has been passed in recent years.
NY Financial Education Standards by Grade Level
New York requires a one-half credit economics course, taken at the 12th-grade level, for high school graduation. The recommended course to fulfill the mandate – Economics, the Enterprise System, and Finance – has four main standards. Under one of those standards (“Individual Responsibility and the Economy”), half of the sub-standards are related to personal finance.
While the Empire State has economic standards in each grade K-8, only a few align with financial literacy standards. Thus only high school seniors are guaranteed any personal finance instruction. Mid-level students who elect to take Career and Technical Education also receive some personal finance learning in one course module.
NY Financial Literacy Standards Review – NFEC Ranking
While New York has mandated financial literacy as a graduation requirement, the positive news ends there. The state standards, unfortunately, fall short of meeting minimum education requirements and will likely leave students ill-prepared to navigate their financial futures.
Although the current mandate represents progress toward ensuring students pick up financial knowledge, it fails to meet the minimum education standards for other core subjects taught in high school; and students who complete the coursework proposed will not be prepared for near-term financial challenges. Read more about the New York Financial Literacy Mandate.
Financial Literacy Standards Review
National Standards for Financial Education
Financial Literacy Standards for Older Youth & Adults (High School through Adults)
Although there is no direct mandate by the New York State Board of Education, it is recommended that national standards be implemented. Financial education is a unique subject; all participants have developed financial habits and relationships with money before instruction begins.
National standards are those that have been proven in empirical and theoretical research to produce the highest improvements in participant test scores.
Financial Literacy Standards for Kids (Kids PK through 8th Grade)
In collaboration with education leader Heidi Jacobs, the NFEC created these financial literacy standards to define learning goals and educational targets for optimal child financial education. Guided by strong pedagogical theory, the standards ensure that instructional targets are age- and developmentally-appropriate and that lessons can be effectively scaffolded. Standards represent five sections based on topic areas in the NFEC curriculum.
Standards for Financial Education Instructors
The NFEC teamed with the well-known Danielson Group to develop the first and only national standards for financial educators – The Framework for Teaching Personal Finance – to define optimal educator skill sets and performance levels. The framework also identifies the financial educator responsibilities empirically proven to produce highest gains in participant test scores. This framework is used in all 50 states, including New York.
References
American Public Education Foundation (2023). The Nation’s Report Card on Financial Literacy, https://www.thenationsreportcard.org/new-york.