College Board launches AP Business at 1,500 schools

More than 1,500 high schools across the country are offering a new Advanced Placement course in business and personal finance this year. The class is the first of its kind in the nation. It combines management principles with practical lessons on handling money. Students can take an exam to earn college credit. This marks a shift from traditional AP subjects like English, history, and chemistry.

David Coleman, the CEO of the College Board, created the course in response to student surveys. Those surveys indicated that students wanted to turn their ideas into jobs. Coleman describes business as a constant learning of adaptation. He argues that the subject is a new part of the liberal arts. He believes it is as important for preparing students for the world as core areas of study like math and history. Coleman says this mix of practical and theoretical pedagogy could not be more useful today.

At Hoover High School near Birmingham, Alabama, junior Darshan Parmar sits in a semicircle with his teacher, Gerri Kimble. The class discusses what to do with part-time job paychecks. Parmar says he invests his money in index funds, including the S&P, QQQ, and VOO. Kimble asks if his parents handle the investing. Parmar says he does it himself. One student puts 70 percent of his earnings into a Roth IRA. Another contributes to a 401(k). A third invests directly in stocks.

The curriculum covers outside factors that affect businesses. These include political, economic, social, technological, environmental, and legal elements. Senior Bramley Williams calls it a foundational piece of business. The course is designed to appeal to students who prefer a practical curriculum over theoretical subjects like AP economics. AP economics is already offered at many high schools, including Hoover.

Hoover High School is the largest high school in Alabama, with a student body just short of 3,000. The campus features wide green spaces. Many students have college aspirations. Students say the AP class is more challenging than other courses. They also note that AP classes are often weighted higher, which can improve grade point averages. Sophomore Damola Kukoyi says the course helps her boost her GPA while learning about a topic she loves.

The AP business class is part of a wider trend in US high schools. Thirty-nine states now require a personal finance class for graduation. That is four more than two years ago, according to the Council for Economic Education. Hoover also offers a four-year business academy with classes in accounting and entrepreneurship. A Federal Reserve paper found that families in states requiring financial education made better financial decisions. They were more likely to use stimulus checks to pay down credit card balances and refinance mortgages during the pandemic.

Jennifer Steele, a professor of education at American University, says youth are good at using money responsibly when educated on the topic. Senior Rachel Deschaine is enrolled in the AP business course. Her father owned a trucking company, and her brother is majoring in economics. Deschaine sees the lessons in conversations at home. She says there is a business in literally everything. She believes understanding how it works opens up opportunities for a person.