What Alabama requires
Alabama's requirement applies to students who entered grade 9 in the 2024-25 academic year and later. Covered students must complete approved personal financial literacy instruction and take the accompanying state examination before course credit is awarded.[1][3][2]
The statewide rule does not add a separate personal finance credit. Alabama's Class of 2028-and-beyond graduation chart assigns one credit to Career Preparedness and notes that students complete the financial literacy exam as part of that course. The Department's implementation guidance names Career Preparedness and Career Preparedness B as approved delivery routes.[4][3]
The exam contains 50 multiple-choice questions covering the required instructional areas. Thirty correct answers is the Department's passing score, but the Department explicitly says a passing score is not required for graduation. The student's score must still be recorded before credit is awarded.[3][2]
Alabama's Career Preparedness framework contains detailed standards for budgeting, banking, credit, saving, investing, risk, and insurance. Beginning in 2026-27, districts may also implement revised Business Software Applications I standards that embed the required career-preparation and financial-literacy competencies.[5][6]
The Department permits a school administrator to waive exam completion for a special education student who is not learning at grade level. Earlier course-embedding waivers are transitional: they expire on their stated date or June 30, 2026, subject to a possible one-year extension, and the prior JROTC embedding memorandum was rescinded effective in 2025-26.[3]
- Grades / placement
- Students entering grade 9 in 2024-25 and later
- Responsible agency
- Alabama State Department of Education
- Assessment required
- Yes
- Evidence
- 6 primary sources
Implementation timeline
- Milestone 01
Act 2023-179 established required personal financial literacy instruction and an examination for students entering grade 9 in 2024-25 and later.[1]
- Milestone 02
The State Board amended Rule 290-3-1-.02 to align graduation requirements with Act 2023-179.[6]
- Milestone 03
The first covered grade-9 cohort entered high school.[3]
- Milestone 04
The State Board approved embedding the required competencies in revised Business Software Applications I standards beginning in 2026-27.[6]
Alabama personal finance standards
The complete list below contains all 25 required personal finance topics currently identified in the controlling state materials. Each topic remains separate so educators and search engines can find the exact requirement.
Career Preparedness Plan of Instruction
Adopted by Alabama State Department of Education.
Open the official documentFinancial management and budgeting
Career Preparedness standards require students to build and use a personal financial plan, compare purchasing choices, and use common payment methods.
- 01
Develop a personal plan for managing income, expenses, savings, and…
Develop a personal plan for managing income, expenses, savings, and charitable contributions using financial-planning tools.[5]
- 02
Create and adjust budgets, net-worth statements, and income and expense…
Create and adjust budgets, net-worth statements, and income and expense statements.[5]
- 03
Identify income other than wages, including rent, interest, and profit
Identify income other than wages, including rent, interest, and profit.[5]
- 04
Investigate and evaluate methods for acquiring goods and making major…
Investigate and evaluate methods for acquiring goods and making major purchases.[5]
- 05
Compare total costs and value, including taxes, tips, discounts,…
Compare total costs and value, including taxes, tips, discounts, quality, and unit price.[5]
- 06
Explain cash, debit, credit, mobile and online payments, checks, payroll…
Explain cash, debit, credit, mobile and online payments, checks, payroll cards, layaway, and automatic deductions.[5]
Banking and financial institutions
Students compare institutions and services and demonstrate account-management skills.
- 01
Describe the functions, advantages, and disadvantages of major types of…
Describe the functions, advantages, and disadvantages of major types of financial institutions.[5]
- 02
Evaluate personal-banking services and their costs at different…
Evaluate personal-banking services and their costs at different financial institutions.[5]
- 03
Manage checking and savings accounts, balance statements, and use online…
Manage checking and savings accounts, balance statements, and use online financial services.[5]
Credit, debt, and legal agreements
The credit standards address borrowing cost, reports and scores, contracts, loans, high-cost credit, and bankruptcy.
- 01
Explain advantages and disadvantages of using credit
Explain advantages and disadvantages of using credit.[5]
- 02
Assess how credit-card terms and interest calculations affect personal…
Assess how credit-card terms and interest calculations affect personal finances.[5]
- 03
Explain why credit ratings and credit reports matter to consumers
Explain why credit ratings and credit reports matter to consumers.[5]
- 04
Identify ways to build and maintain a good credit score
Identify ways to build and maintain a good credit score.[5]
- 05
Determine the implications of contracts and binding agreements
Determine the implications of contracts and binding agreements.[5]
- 06
Compare loans, including college, payday, personal, vehicle, collateral,…
Compare loans, including college, payday, personal, vehicle, collateral, passbook, and mortgage loans.[5]
- 07
Describe legal and illegal high-interest credit arrangements
Describe legal and illegal high-interest credit arrangements.[5]
- 08
Explain bankruptcy eligibility, means tests, and credit counseling
Explain bankruptcy eligibility, means tests, and credit counseling.[5]
- 09
Assess consumer effects of Chapter 7, Chapter 11, and Chapter 13…
Assess consumer effects of Chapter 7, Chapter 11, and Chapter 13 bankruptcy filings.[5]
Saving and investing
Students distinguish short-term saving from long-term investing and compare major investment forms.
- 01
Gather and evaluate information about saving for short-term goals
Gather and evaluate information about saving for short-term goals.[5]
- 02
Evaluate investments for income, retirement, and other long-term goals,…
Evaluate investments for income, retirement, and other long-term goals, including their advantages and disadvantages.[5]
Risk management and insurance
Students evaluate insurance, insurable risks, workplace safety, and disaster preparation.
- 01
Determine insurance options for automobile, liability, property, health,…
Determine insurance options for automobile, liability, property, health, life, long-term care, and disability risks.[5]
- 02
Identify factors that affect insurance cost
Identify factors that affect insurance cost.[5]
- 03
Identify perils that are insurable
Identify perils that are insurable.[5]
- 04
Summarize workplace safety and health standards for routine and…
Summarize workplace safety and health standards for routine and emergency procedures.[5]
- 05
Develop a financial and personal security plan for disasters, records,…
Develop a financial and personal security plan for disasters, records, cash reserves, inventories, and estate documents.[5]
Relevant law, rule, or board action
Ala. Code § 16-40-12 (Act 2023-179)
Instruction in personal financial literacy and money managementRequires covered public-school students to complete personal financial literacy instruction and take the state examination.[1]
Ala. Admin. Code r. 290-3-1-.02
Regulations governing public schoolsPlaces the required financial literacy instruction and 50-question exam within approved graduation coursework for the 2024-25 entering cohort and later.[2]
Notes for teachers and curriculum leaders
- Schedule every covered student into an ALSDE-approved course and administer the state exam at course completion. Record the score before awarding the course credit.[3]
- Do not treat the exam's passing score as a diploma threshold. Students must take the exam, but ALSDE says they need not earn 30 correct answers to graduate.[3]
- A school administrator may waive exam completion for a special education student who is not learning at grade level. This is an exam-completion waiver, not a general exemption from the approved instruction.[3]
- Do not rely on an older local embedding arrangement without checking its expiration. Existing waivers sunset on their stated date or June 30, 2026, subject to the Department's limited extension process, and the former JROTC embedding memorandum no longer applies beginning in 2025-26.[3]
- For 2026-27 and later schedules, verify whether the district has implemented the State Board-approved Business Software Applications I pathway or continues using Career Preparedness options.[6][3]
Official sources
- 1Ala. Code § 16-40-12 — Instruction in Personal Financial Literacy and Money ManagementLocator: Subsections (a)-(c), enacted by Act 2023-179Supports: enacted mandate, grade-9 cohort, course completion, exam
- 2Alabama Administrative Code Rule 290-3-1-.02Locator: Current compiled rule; high-school graduation requirements and financial literacy examinationSupports: regulatory implementation, 50 questions, required Career Preparedness delivery
- 3Alabama High School Graduation Requirements: Guidelines for Implementation and Additional InformationLocator: Financial Literacy Course Requirement and Examination and transition guidanceSupports: first cohort, approved courses, exam administration, passing score, special education waiver, embedding-waiver transition
- 4Alabama High School Graduation Requirements, Graduating Class of 2028 and Beyond, Option BLocator: Graduation requirement table, Career Preparedness rowSupports: one Career Preparedness credit, class of 2028, exam within course, 24-credit total
- 5Career Preparedness Plan of InstructionLocator: PDF pages 58-102, standards AL.CT21.WB.CP.15 through AL.CT21.WB.CP.24Supports: complete financial standards, integrated course design, budgeting, banking, credit, saving, insurance
- 6Resolution to Embed Career Preparation Standards and Financial Literacy Requirements into Business Software Applications ILocator: Resolution, full textSupports: additional course pathway, 2026-27 implementation, embedded delivery
Frequently asked questions
Does Alabama require financial literacy to graduate?
Yes. Students entering grade 9 in 2024-25 and later must complete approved personal financial literacy instruction and take the state financial literacy examination.[1][3]
Does Alabama require a separate personal finance course?
No separate additional credit is required. The approved instruction is delivered through Career Preparedness options, and districts may begin using the approved Business Software Applications I pathway in 2026-27.[3][4][6]
Must Alabama students pass the financial literacy exam?
No. Students must take the 50-question exam, but the Department says its 30-correct passing score is not required for graduation.[3]
Can Alabama waive the financial literacy exam for a student with a disability?
A school administrator may waive exam completion for a special education student who is not learning at grade level. The guidance does not create a blanket exemption from the approved financial literacy instruction.[3]
Which Alabama students are first covered?
The rule first covers students who entered grade 9 during the 2024-25 school year, generally the graduating Class of 2028.[3][4]
What do Alabama's financial literacy standards cover?
The approved Career Preparedness standards cover budgeting, income, consumer choices, banking, payment methods, credit reports and scores, loans, contracts, bankruptcy, saving, investing, insurance, and disaster planning.[5]