College Board launches AP Business with Personal Finance

High school students in Alabama are learning how to manage part-time paychecks before they even graduate. At Hoover High School near Birmingham, a class of teenagers discusses where their money goes. Some buy loaded tea and fill gas tanks. Others invest in index funds, Roth IRAs, and 401(k)s. This practical focus marks the first year a new Advanced Placement course is available to students nationwide.

The College Board created the AP Business with Personal Finance course. It is offered at more than 1,500 high schools across the United States this academic year. Students who pass the final exam can earn college credit. Historically, AP credit has been reserved for traditional subjects like history, English, and chemistry. This new class shifts the focus to management and personal money management.

David Coleman, CEO of the College Board, says the course responds to student surveys. Many students want to turn their ideas into jobs. Coleman describes business as a core part of the liberal arts. He argues that mixing practical skills with theoretical knowledge is essential for preparing students for the modern world. The course covers external factors that affect companies, including political, economic, and legal environments.

The new AP class fits into a wider trend in American education. Thirty-nine states now require a personal finance class for high school graduation. That is four more states than two years ago, according to the Council for Economic Education. Schools like Hoover High School, which has nearly 3,000 students, are adding these lessons to their standard curriculum. Hoover also offers a four-year business academy that includes accounting and entrepreneurship.

Students say the AP course is challenging and can boost their grade point averages. AP classes often carry more weight in GPA calculations. A Federal Reserve paper found that families in states with financial education requirements made better financial choices. During the pandemic, these families were more likely to use stimulus checks to pay down credit card debt and refinance mortgages.

Jennifer Steele, a professor of education at American University, notes that young people are good at using money responsibly when taught. At Hoover High, students see the value in the curriculum. Senior Rachel Deschaine says business knowledge helps her understand how people and companies interact financially. She notes that her father owned a trucking company and her brother studies economics. Deschaine believes understanding these mechanics opens up opportunities for students.