BOWLING GREEN, Ky. — According to the Council for Economic Education, 35 states require personal finance classes for a student to graduate high school.

Kentucky is now on that list after House Bill 342 was signed into law by Gov. Andy Beshear, D-Ky.

Brian Alexander, Edmonson County Schools superintendent, said this bill is vital to help students succeed.

“I think this is one of the best pieces of legislation for education," Alexander said. 

The new law makes it mandatory for Kentucky public high school students to complete one course in financial literacy during their high school years. Those courses can include classes in investing, taxes, budgeting and other topics. The law also requires schools to establish financial literacy standards.

“It’s so important that these kids learn how to balance a checkbook, how to open a bank account," Alexander said. 

This bill would allow the course to act as an elective.

“It is required, so still some flexibility there because there’s a lot of electives that students can take," said State Rep. Michael Meredith, R-Oakland, one of the bill's cosponsors.  

According to one study by the University of Illinois, nearly one-third of young adults were “financially precarious” because they lacked financial literacy. In addition, more than three out of four of young adults are financially unstable.

Meredith said he hopes the bill will mitigate that problem.

"And I think high school, in that level, right before they get out and start making these decisions, is the proper place to do that," Meredith said. 

Alexander said regardless of one’s income, these statistics highlights the need for a bill like this.

“It doesn’t matter how much money you make if you don’t know how to manage it," Alexander said.

The law will take effect in fall 2026.