Should Michigan Start Requiring Financial Literacy Courses in School?

The number one issue with American residents in this day is balancing their finances. Some are better at tightening the belt than others, while some are thankfully well-off enough, they can be a bit frivolous. However, as prices continue to climb for basic goods, homes, vehicles, and rentals, being financially stable becomes increasingly more difficult.

So a new movement has started sweeping across education programs in the country, and now California has now mandated that high schools teach financial literacy courses to their students. Is this something that could soon make its way into Michigan as well?

Get our free mobile app

California recently took things to the very top, and have now approved a financial literacy course that will take effect in the 2027-28 school year, and will require that all students who attempt to graduate by the 2030-31 school year pass the course.

Their governor, Gavin Newsom, signed the bill that will mandate the semester-long course, part of the California Personal Finance Education Act.

The bill was drafted after a survey of thousands of high school and middle students in 2021 who has surprisingly low levels of financial understanding. Only about 27% said they were prepared for what their monthly payments might be after college, 32% felt they could read and understand loan offers and repayment information, and less than half claimed to understand how to read a paycheck, and understand what determines net pay.

The course would teach basic information pertaining to understanding how much of a person's paycheck is devoted to taxes - both federal and state - and how to balance your bills with your income, while still being able to save, and invest.

Is Stability possible, even with a Financial Literacy Course?

At the moment, California is THE most expensive state to live in the United States, which Michigan ranks as the 12th BEST state to live in when it comes to cost of living. That's not to say, still, that things aren't expensive.

Michigan only ranks as the 30th most expensive state to rent in, but the average one-person apartment is still going for about $900/month, and according to a recent study, for Michiganders to live comfortably - that's no issues paying bills, but without any frivolous spending - a person would need to make $84,365 per year, or $40.56 an hour.

Unfortunately, the average salary in Michigan is only about $49,560.

So learning to balance your budget as effectively as possible could still benefit Michiganders, despite this state being on the "more affordable" side of the spectrum in terms of other states in the country.

Do you think a Financial Literacy Course in schools would help, or is it just impossible for people to properly account for even basic needs anymore?