1,500 High Schools Launch AP Business Course

The College Board introduced a new Advanced Placement course titled Business with Personal Finance this year. More than 1,500 high schools across the United States offer the class for the first time. The course allows students to sit for an exam that can grant college credit.

Hoover High School in Birmingham, Alabama, is one of the institutions teaching the new material. The school is the largest high school in Alabama with nearly 3,000 students. Gerri Kimble teaches the class to groups of students who discuss real world financial decisions.

Junior Darshan Parmar told Kimble that he manages his own investments. He buys index funds such as S&P, QQQ, and VOO. He does not rely on his parents to make these purchases. Other students in the room report different strategies for handling their part time job paychecks.

One student allocates 70 percent of his earnings to a Roth IRA. Another contributes to a 401(k). A third student invests directly in individual stocks. Kimble asked the students if they watch market data. They confirmed that they track the numbers.

The College Board created the course after student surveys indicated a desire to turn ideas into jobs. David Coleman, the organization's CEO, stated that business involves the constant learning of adaptation. He argues that the subject is a new part of the liberal arts. Coleman said the pedagogy mixes practical skills with theoretical knowledge.

The class covers management and finances. Students learn about external factors that affect businesses. These factors include political, economic, social, technological, environmental, and legal forces. Senior Bramley Williams described the material as a foundational piece of business education.

Thirty nine states require a personal finance class for high school graduation this year. That number is four states higher than two years ago, according to the Council for Economic Education. A Federal Reserve paper found that families in states with financial education requirements made better financial decisions during the pandemic. Those families were more likely to use stimulus checks to pay down credit card balances and refinance mortgages.

Jennifer Steele, a professor of education at American University, said youth are good at using money responsibly when they receive proper education. Hoover High School also offers a four year business academy with classes in accounting and entrepreneurship. Many students in the AP class hope to attend college.

Sophomore Damola Kukoyi said the AP course helps boost her grade point average. AP classes are often weighted higher than standard courses. Senior Rachel Deschaine noted that the lessons connect to her family life. Her father owned a trucking company and her brother is majoring in economics. Deschaine said business knowledge opens up opportunities for a person.

The course is designed for students who prefer a practical curriculum. AP economics remains available at schools like Hoover. The new business course adds a focus on personal finance and management. Students take the AP exam to earn college credit in a subject that was previously not part of the standard AP lineup.