In a landmark move, Colorado has joined the ranks of 26 other states by mandating financial literacy courses for high school graduation. This decision follows the Senate's overwhelming approval of a bipartisan bill on Wednesday, which passed with significant support during its third reading. The legislation requires all Colorado high school students to complete a personal finance course at some point during their four years in order to graduate. Local districts retain flexibility over implementation, aligning with statewide standards set by the Colorado Department of Education.
The initiative stems from an effort to equip students with essential life skills regarding money management and financial aid applications. Around 25% of Colorado’s 178 school districts had already integrated financial literacy into their curricula independently. Testimonies from students within these districts highlighted the value of such education. Furthermore, the bill emphasizes practical exercises, such as filling out mock federal or state financial aid forms, aiming to boost Colorado's historically low FAFSA completion rates. The state ranked 43rd nationwide in 2025, with less than 38% of seniors submitting FAFSA forms, leaving approximately $30 million in unclaimed student aid annually.
Despite initial pushback from teachers unions and school boards concerned about additional workload and resource allocation, amendments have softened opposition. Educators can now incorporate financial literacy standards into existing courses rather than creating new ones. For instance, if a district mandates four years of mathematics, the relevant standards could be embedded within that framework. This approach addresses concerns about potential teacher overburden amidst widespread understaffing and underfunding issues across schools.
Funding allocated to support this mandate includes approximately $220,000 through the 2027-28 academic year and $12,000 annually thereafter. These funds will assist districts in implementing the requirement effectively. Democratic Rep. Jennifer Bacon noted that it might take schools several years to fully adapt to the new regulations. Evidence from other states suggests that similar requirements do not adversely impact graduation rates, reinforcing the feasibility of this educational enhancement.
Applicable only to students entering ninth grade on or after September 1, 2026, this legislation marks a progressive step toward preparing Colorado youth for financial independence. By embedding crucial financial knowledge into the high school experience, Colorado aims to empower its future generations with the tools necessary to navigate complex financial landscapes confidently.