§ 16-40-12 — Instruction in Personal Financial Literacy and Money Management

Alabama § 16-40-12

• Jurisdiction: Alabama
• Title 16: Education
• Ch. 40: Instruction as to Certain Subjects
• Art. 1: General Provisions

Text

(a) Beginning with public school students entering ninth grade in the 2024-2025 school year, each student shall complete a course in personal financial literacy and money management before graduation from high school. This instruction shall include discussion of or instruction in all of the following:
(1) Types of bank accounts offered, opening and managing a bank account, and assessing the quality of services provided by a depository institution.
(2) Balancing a checking account.
(3) Basic principles of money management including, but not limited to, spending, credit, credit scores, and managing debt, including retail and credit card debt.
(4) Evaluating types of loans.
(5) Basic principles of personal insurance policies.
(6) Understanding percentages as relating to taxation.
(7) Computing interest rates by various mechanisms.
(8) Simple contracts.
(9) Types of savings and investments.
(b)(1) Before June 30, 2024, and in accordance with Section 16-35-4, the State Department of Education shall identify approved financial literacy courses that may fulfill one unit of academic credit for any mathematics course for high school graduation.
(2) No later than June 30, 2024, the State Department of Education shall create an examination that focuses on the standards of the approved financial literacy course. The examination shall be provided to local education agencies and shall be administered to each student upon completion of the approved financial literacy course. A summary of examination results, by local school system, shall be recorded and reported annually to the State Department of Education.
(c) The State Board of Education shall adopt rules as necessary to implement this section.

Legislative History

(Act 2023-179, §1.)