To graduate, high school students in Ohio must now pass a half-credit course in financial literacy.
What does the law say?
The legislation Senate Bill 1 was signed
into law on Oct. 28, 2021 by Gov. Mike DeWine. Starting with the graduating class of 2026, students in Ohio public high schools must pass a one-half unit course in financial literacy
to graduate.
What grade should the class be offered in?
Schools can decide what year the required class will be taught. Students tend to have more scheduling flexibility in their ninth-grade year. However, if that is your plan, you
should have it in place for the 2022-2023 school year. Otherwise, you will have to double-up a year, which could be difficult. Research has shown that the closer the material is taught
to when the students can apply it, the more likely it will affect behaviors. Everything else being equal, it would be better for students to take the class as juniors or seniors.
How demanding are the standards?
The Ohio Model Financial Literacy curriculum has 55 specific High School Expectations for Learning. The standards are comprehensive and require students to apply their knowledge. A
lab-based hands-on program is essential. They are very different from the expectations of typical economics or life skills classes. Many students lack existing knowledge to build on.
Many of the new expectations require higher-order thinking and practical application of specific key concepts and skills. Examples include:
- Prepare a monthly budget for a family or individual given their income, savings goals and taxes, as well as their fixed and variable expenses.
- Reconcile a checking and savings account balance using both an account register and an electronic tool.
- Evaluate several credit card offers and choose the best card based on criteria such as interest rate, fees and rewards programs.
Others require a specific content focus that is not included in most programs. Examples include:
- Describe the process for consumers who believe they are victims of fraud to seek recompense.
- Describe the difference between a loan from a bank and one from a payday lender.
- Recommend actions a victim of identity theft should take to limit losses and restore personal security.
Consequently, most "off-the-shelf" textbooks, on-line programs, or free resources from organizations like the Federal Reserve, FDIC, and bank or financial institution sponsored programs
will be inadequate. Expecting teachers to create a coherent standards-based program by cherry-picking from a dozen or more different resources is unrealistic.
Ohio-based Budget Challenge
is the only program that teaches all 55 Ohio standards.
Who can teach the class?
For 2023-2024, any certified high school teacher may teach the class. Beginning with the 2024-2025 school year, public school teachers who teach the class must have educator license
validation in financial literacy. A classroom teacher with a valid educator license or endorsement in social studies, family and consumer sciences, or business education is considered
qualified to teach the class. It appears they can apply for validation at the school or district's expense.
There is a certification path for teachers who are not certified in any of the above areas but wish to teach the class. To obtain a license validation in financial literacy, they must
hold a valid educator license issued under section 3319.22 or 3319.26 of the Revised Code, a permanent teaching certificate issued under former law, or for an individual at a chartered
non-public school, a certificate issued under section 3301.071 of the Revised Code. They must complete a district-approved financial education program and pass a certification test.
What teacher training meets the state requirement and will prepare them for the certification test?
The Foundation for Economic Education (FEE) and Budget Challenge are designing certification training based on the new Ohio standards. The Foundation for Economic Education
(FEE) has long been a leader in financial literacy teacher certification. The FEE/Budget Challenge certification process will prepare teachers without social studies, business education, or
family and consumer science certification to pass the certification test and teach the required course. It will also prepare “on-paper certified” teachers to teach the new class effectively.
Please complete this form to receive FEE/Budget Challenge training information. It would benefit all teachers to complete this course.
Are most certified teachers ready to teach the class?
Because of the rigor of the expectations for learning, it is safe to assume that an educator teaching history, life skills, accounting, or any of the other classes in the certification
areas "grandfathered" into teaching financial literacy is not necessarily prepared to teach it. A recent National Endowment for Financial Education survey of over 1200 teachers actually
teaching financial literacy found less than 20 percent reported feeling “very competent” to teach any of the six personal finance topics surveyed. Two-thirds did not have even a single college
class in financial literacy. Experience in other states has shown that even experienced teachers are often reluctant to teach a subject they're unprepared for or who may be facing financial
challenges themselves. The newest teachers are often assigned to teach the class in many schools, so they will need support. Additional training such as the FEE certification described earlier
may be helpful.
Has the state created a fund to pay for teacher certification/validation?
Yes, however, the details are still unclear. The current law is unclear whether that includes the cost of training and certification, or only the cost of certification. The FEE/Budget
Challenge training will be free for Ohio teachers and school districts. The state fund could possibly reimburse teacher training costs such as mileage or even pay a stipend. Stay tuned for more
information as it becomes available.
What can the class count towards for graduation requirements?
Students may choose to have the class count as a mathematics unit. The one-half unit course cannot replace Algebra II or its equivalent or a course for which the state board requires an
end-of-course examination under section 3301.0712 of the Revised School Code. Otherwise, the class will count toward the existing graduation requirement of five units consisting of one or any
combination of foreign language, fine arts, business, career-technical education, family and consumer sciences, technology which may include computer science, agricultural education, a junior
reserve officer training corps (JROTC) program, or English language arts, mathematics, science, or social studies courses not otherwise required. Different students can use the same class
to fulfill different requirements.
What EMIS code should be used for the financial literacy graduation credit?
Financial Literacy, EMIS code 153001, can be used for students taking the one-half credit financial literacy course that can satisfy an elective or mathematics graduation requirement.
Personal Financial Management, EMIS code 091052, can be used for students taking the one-half credit financial literacy course that can satisfy an elective or mathematics graduation requirements.
This code can only be used for students who take the course with an educator licensed to teach Family and Consumer Sciences.
Business Foundations, EMIS code 141000, can be used for students taking the one-half credit financial literacy course that can satisfy an elective or mathematics graduation requirement. This code
can only be used for students who take the course with an educator licensed to teach Career-Technical Education Business Career Field courses. It is the responsibility of the district to ensure the
academic content standards and model curriculum for financial literacy adopted by
the State Board of Education in 2019 are embedded within the instruction of this course.
Is there a College Credit Plus coursework option to satisfy the Financial Literacy one-half credit requirement?
Yes, in fact, Kathy Simindinger at Rhodes State College has developed a program that meets all state standards and is working with various school districts to implement the program. Students can
take the class in your school with your staff or online directly from Rhodes. For more information on this program, contact tim@budgetchallenge.com. For
other colleges or universities, be sure to review the college course syllabus to ensure alignment of the College Credit Plus course to the state standards for the required class.
Are non-public schools exempt from the requirement?
A student attending a non-public school accredited through the independent schools association of the central states or any other chartered non-public school will not be required to complete the
one-half unit of financial literacy instruction unless that student is attending the school under a state scholarship program. Nonetheless, there is widespread support for financial education, and
it is expected that most of these schools that do not already teach personal finance will offer an elective or required class.
Check back for regular updates as more information becomes available.
Let us decipher the "bureaucratese" so you can focus on education. Ohio-based Budget Challenge is not only your source for the most effective financial education program available; it is also
your source for information on the new law and related activity.