1,500 schools launch AP Business course to teach investing and management

More than 1,500 high schools across the United States launched a new Advanced Placement Business with Personal Finance course this year. The class represents the first time the College Board has offered a business track in its AP program, a lineup that has historically focused on canonical subjects like English, history, and chemistry.

The curriculum marks a shift in what colleges expect from high school students. Until now, AP exams generally tested theoretical knowledge in core academic fields. The new course combines business management principles with personal finance, allowing students to sit for an exam that can earn them college credit in a practical discipline.

David Coleman, CEO of the College Board, stated that the organization created the course after students indicated in AP surveys that they wanted to turn their ideas into jobs. Coleman argues that business is a "constant learning of adaptation" and considers it a new component of the liberal arts. He believes that mixing practical skills with theoretical study is "could not be more useful today" for preparing students for the world.

The introduction of this AP course follows a wider trend in American education. According to the Council for Economic Education, 39 states now require a personal finance class for high school graduation. That number is four higher than it was two years ago, indicating a growing institutional interest in financial literacy.

At Hoover High School in Birmingham, Alabama, the class is in session. Students sit in a semicircle around teacher Gerri Kimble to discuss how to handle part-time job paychecks. Junior Darshan Parmar explained that he invests his own money in index funds, specifically naming S&P, QQQ, and VOO. Another student in the group allocates 70 percent of their income to a Roth IRA, while a third contributes to a 401(k).

Senior Bramley Williams described the curriculum as a "foundational piece of business" that covers outside factors affecting companies. These factors include political, economic, social, technological, environmental, and legal elements. The class offers an alternative to the standard AP Economics course, which is already available at Hoover and other schools but is more theoretical.

Students at the school, which has a student body of nearly 3,000, view the AP designation as a way to boost their grade point averages. AP courses are typically weighted more heavily than other classes. Sophomore Damola Kukoyi noted that the course allows her to learn about a topic she loves while improving her academic standing.

Jennifer Steele, a professor of education at American University, pointed to a Federal Reserve paper from a few years ago. The study found that families in states with mandatory financial education made better financial decisions. During the pandemic, these families were more likely to use stimulus checks to pay down credit card balances and refinance mortgages while interest rates were low.

Rachel Deschaine, a senior enrolled in the course, said the lessons apply to her daily life. Her father owned a trucking company, and her brother is studying economics. She observed that the class teaches how people and companies interact financially with the world. She noted, "There's a business in literally everything. If you're willing to understand how it works, it really opens up the opportunities to a person."

The College Board also administers the SAT. The new AP Business course is available for the first time this year. Hoover High School also offers a four-year business academy that includes classes in accounting and entrepreneurship. The AP class adds a college-level credit opportunity to that existing program.