Ohio's financial literacy mandate: Will strong policy lead to strong outcomes?

By Dr. Roy Baker Jr., CPA, accounting and finance instructor, Stark State College

Starting with the class of 2026, all Ohio high schoolers must complete a stand-alone course in personal finance, a shift that brings the state in line with a growing national movement.

While the legislation is promising, its true impact will depend on critical factors like course timing, teacher training and the quality of implementation across school districts. The question now is: Will Ohio get it right?

What Will Determine Its Success?

Only recently has the momentum behind financial literacy reform become evident. According to the Council for Economic Education, in 2014, only 17 states mandated stand-alone financial literacy classes. Ohio was not one of those states. From the period 2016-2020, that number decreased to 5-6 states, depending on the year. These states once again did not include Ohio. By 2022, the number increased to 9 states, including Ohio, and as of 2024, it reached 20 states. This new upward trend underscores a national recognition of the importance of equipping students with essential financial skills. Through my experience working with both high school and college students—and coming from a financially illiterate household myself—I’ve witnessed how financial education can be truly life-changing. My years in an industry surrounded by individuals facing financial hardship further reinforced this view. From both the classroom and the field, it's clear that financial literacy makes a difference. But its overall impact likely depends on how thoughtfully these programs are designed and delivered.

Are Ninth Graders Ready?

One important concern is when the course is taught. Some districts begin financial literacy instruction as early as 9th grade. However, experience across grade levels suggests that freshmen may lack the maturity and real-world context necessary to fully understand complex topics such as credit, debt and insurance. Research supports this perspective. A study by Fernandes, Lynch, and Netemeyer (2014) introduced the concept of “just-in-time” financial education, suggesting that financial literacy is most effective when taught closer to the time students will apply the knowledge. Teaching these principles too early, they found, can lead to knowledge decay, reducing the program's effectiveness.

Positioning the course in 11th or 12th grade may enhance its relevance and applicability, aligning instruction with students' imminent financial decisions. At this stage, students are closer to major life choices, such as getting a job, applying for college loans or managing personal expenses, which makes the material more immediately useful and likely to be retained. Delaying the course until these later years can also encourage deeper engagement, as students are better able to relate the concepts to their own lives.

Are Ohio Teachers Prepared to Teach Financial Literacy?

Another major concern is whether Ohio educators are receiving adequate preparation to teach financial literacy effectively. The success of these programs depends not only on the curriculum but also on the competence and confidence of those delivering it. Beginning in the 2024–2025 school year, Ohio teachers assigned to the mandated financial literacy course must obtain a Financial Literacy Licensure Validation. However, those already licensed in Social Studies, Family and Consumer Sciences, Mathematics, or Business Education for grades 9–12 are exempt from this requirement.

This exemption raises important questions about consistency in teacher readiness. While these subject areas may provide a general foundation, they don't guarantee comprehensive training in personal finance. As a result, the depth and quality of instruction could vary significantly from classroom to classroom. To support educators pursuing the required validation, Ohio offers districts up to $500 in reimbursement per teacher. Though helpful, this amount may not fully cover the cost of robust training, potentially limiting access to high-quality professional development opportunities.

The Ohio General Assembly (2025) recently established The Financial Literacy and Workforce Readiness Programming Initiative with the stated purpose to ensure the next generation's preparedness in financial literacy, workforce or career readiness, entrepreneurship and other relevant skills to enter and be competitive in Ohio's future workforce economy. This additional funding could help strengthen the core financial literacy foundation for both students and teachers.

Learning from Other States: Georgia vs. Texas

Ohio can draw valuable insights from Urban, Schmeiser, Collins, and Brown (2020) research related to other states' experiences:

• Georgia: Implemented rigorous teacher training, requiring certification in economics or social studies, funded expert-led programs, and included personal finance in standardized testing. This comprehensive approach led to significant improvements in student credit scores and reduced delinquencies.

• Texas: Established curriculum standards without mandatory teacher training, clear certification enforcement, or inclusion of financial literacy in testing. While there were some positive outcomes, the gains were less pronounced compared to Georgia.

These examples highlight the critical role of comprehensive teacher preparation and accountability in the success of financial literacy programs. Will Ohio be the next Georgia, or will it be the next Texas?

We Take Financial Literacy Seriously: What We’re Doing at Stark State College

At Stark State College, proactive steps are being taken to support financial literacy:

1. Two-credit stand-alone financial literacy course: Offered to high school dual credit students, fulfilling both high school and college requirements.

2. Integration into student success introductory courses: Embedding financial literacy principles to reach a broader student base.

3. Free financial literacy workshops: Conducted every semester to enhance student knowledge.

4. Free one-on-one financial literacy coaching sessions: Providing personalized guidance to address individual financial concerns.

5. Summer financial literacy course for Upward Bound high school students: Provided to students from Canton City Early College High School (ECHS) and other participating Stark County high schools.

6. Offering a financial literacy course to the Ohio Department of Youth Services (ODYS): Provided to female youth who are adjudicated into the correctional system.

7. Collaboration with The Ohio Society of CPAs: Raising awareness and emphasizing the importance of financial education.

Looking Ahead

The coming years will provide an opportunity to evaluate Ohio’s outcomes compared to other states with stand-alone financial literacy classes. How will we fare against other states that require a stand-alone financial literacy course in high school? Success will depend not only on policy but also on effective implementation, particularly regarding course timing, comprehensive teacher training and adequate funding.

The foundation has been laid, but important questions remain. Will Ohio continue to build thoughtfully on this progress to ensure students are well-equipped with essential financial skills? The long-term success of the initiative will depend on how effectively it is implemented and sustained. With the right follow-through, Ohio has the opportunity to become a national leader in financial education. The path is clear; now it’s time to invest in getting the details right.

Dr. Roy Baker Jr., CPA, accounting and finance instructor, Stark State College

References

Council for Economic Education. (2024). Survey of the states. Retrieved from https://www.councilforeconed.org/wp-content/ uploads/survey-of-states-2024.pdf

Fernandes, D., Lynch, J. G., Jr., and Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861–1883. https://doi. org/10.1287/mnsc.2013.1849

Ohio General Assembly. (2021). Sub. S. B. 1, 134th General Assembly, Sections 3319.238–3319.239: Financial literacy requirement in high school. Ohio Legislative Information System. https://search-prod.lis.state.oh.us/api/v2/general_assembly_134/ legislation/sb1/02_PS/pdf/

Ohio General Assembly. (2025). Am. Sub. H.B. No. 96, 136th General Assembly, Section 265.650: Financial Literacy and Workforce Readiness Programming Initiative. Ohio Legislative Information System. https://search-prod.lis.state.oh.us/api/v2/ general_assembly_136/legislation/hb96/05_PS/amendments/ CC0522/pdf

Urban, C., Schmeiser, M., Collins, J. M., and Brown, A. (2020). The effects of high school personal financial education policies on financial behavior. Economics of Education Review, 78. https://doi. org/10.1016/j.econedurev.2018.03.006