MI students now required to complete personal finance to graduate

LANSING, Mich. — Michigan high school students will need to learn to be a little more savvy with their money in order to graduate. At least that is the goal of a new required course for high school students.

The completion of a personal finance course is now a requirement for Michigan high school students to receive their diplomas, thanks to a bipartisan bill passed in 2022.

House Bill 5190 of 2021 revised what was needed to obtain a high school diploma, adding personal finance to the requirements for all students starting with those entering eighth grade in 2023. Students that were already in eighth grade or higher in 2022 will not have to complete the personal finance course to graduate.

The Michigan Department of Education’s new curriculum expectations will focus on seven areas of personal finance:

1. Earning Income: Conduct research regarding potential income and employee benefit packages, non-income factors that may influence career choice, benefits, and costs of obtaining the necessary education or technical skills, taxes a person is likely to pay, and other possible sources of income.
2. Buying Goods: and Services Describe the factors that consumers may consider when purchasing a good or service, including the costs, benefits, and the role of government in obtaining the information.
3. Budgeting and Saving: Identify the incentives people have to set aside income for future consumption and evaluate the impact of time, interest rates, and inflation upon the value of savings.
4. Using Credit: Evaluate the benefits, costs, and potential impacts of using credit to purchase goods and services. Students also learn about Free Application for Federal Student Aid (FAFSA), Student Loans, Scholarships, Work Study and Grants.
5. Financial Investing: Analyze the risks, expected rate of return, tax benefits, the impact of inflation, the role of government agencies, and the importance of diversification when investing in financial assets.
6. Protecting and Insuring: Assess the financial risk of lost income, assets, health, or identity, and determine if a person should accept the risk exposure, reduce risk, or transfer the risk to others by paying a fee now to avoid the possibility of a larger loss later.
7. Paying Taxes: Identify and evaluate taxes a person is likely to pay, including federal, state, and local taxes, tax benefits and drawbacks, impacts on take-home pay, types of IRS tax forms, and how these can affect their taxes.

The state chose the Next Gen Personal Finance Program as the model curriculum, but districts can choose to use other curriculum as long as it meets content expectations.