Robert M. La Follette School of Public Affairs

The Effects of State Policies Requiring High School Personal Finance Education on Credit Scores

Young adults frequently have poor credit histories, which can impede economic opportunities. Several states in the United States have implemented policies mandating personal finance courses prior to graduation from high school. These policies could result in young adults engaging in positive credit behaviors earlier in life, which in turn will result in higher credit scores. This quasi-experimental study estimates the effects of personal finance education requirements in three states on credit scores, relative to students in nearby states without financial education requirements. Overall, students graduating from high school in states with newly implemented personal finance education policies have 15 to 19 points higher credit scores. These results are consistent with state financial education requirements providing financial benefits for young adults.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2016-002
  • Author(s): J. Michael Collins, Carly Urbany, Maximilian Schmeiserz, Alexandra Brown{