Texas Financial Literacy Standards
The American Public Education Foundation (APEF) grades each U.S. state based on its financial literacy standards as part of the foundation’s ongoing initiative, The Nation’s Report Card on Financial Literacy. As of 2022, the Lone Star State receives a grade of “B” for financial education. The significant accomplishments Texas made to earn this grade include having a required high school course with financial literacy standards; requiring high schools to offer financial education as an elective; and putting financial education standards in place for grades K-8.
In 2013 with House Bill No. 2662, the Texas legislature had amended the state’s Education Code such that “The Texas essential knowledge and skills…shall include instruction in personal financial literacy…in one or more courses offered for high school graduation.” In 2021, the Texas General Assembly passed Senate Bill 1063, which created a one-half credit high school course titled “Personal Financial Literacy and Economics,” of which two-thirds of the instruction is spent on personal finance topics.
TX Financial Education Standards by Grade Level
The Texas Essential Knowledge and Skills standards embed financial literacy concepts into the mathematics curriculum at each grade level K-8, in addition to the mandate that personal financial literacy be offered as an elective in high schools. According to the APEF, making the Personal Finance course a high school graduation requirement would be all the Lone Star State would need to do to earn an “A” grade.
Requirements
K – 3rd Grade
Requirements
4th – 6th Grade
Requirements
7th – 8th Grade
High
School
TX Financial Literacy Standards Review – NFEC Ranking
Texas financial literacy bill SB 1063 fails to meet the minimum education standards required for other core subjects taught in high school and students who complete the proposed coursework will not be prepared for near-term financial challenges. Read more about SB 1063.
SB 1063 Breakdown
National Standards for Financial Education
Financial Literacy Standards for Older Youth & Adults (High School through Adults)
Although there is no direct mandate by the Texas 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 Texas.
References
American Public Education Foundation (2020). The Nation’s Report Card on Financial Literacy, https://www.thenationsreportcard.org/texas.
