College Board rolls out new AP business class in 1,500 schools

High school students in Alabama are using part-time job earnings to buy index funds and fill Roth IRAs. These teens are taking a new advanced placement course that treats business as a core subject. The class is the first of its kind offered in the United States this academic year.

At Hoover High School near Birmingham, students sit in a semicircle with teacher Gerri Kimble. They discuss how to handle income from part-time work. Junior Darshan Parmar says he invests his paychecks in index funds like the S&P 500, QQQ, and VOO. He handles the transactions himself without parental involvement. Other students report putting 70 percent of their earnings into a Roth IRA or contributing to a 401(k).

The College Board created the course after students asked for more practical options. David Coleman, the CEO of the organization, says business involves the constant learning of adaptation. The board argues that mixing practical skills with theoretical study is useful today. Coleman views business as a new part of the liberal arts, comparable to math and history.

The course covers management, finances, and outside factors that affect businesses. Students learn about political, economic, social, technological, environmental, and legal influences. Senior Bramley Williams calls it a foundational piece of business. The curriculum appeals to students who prefer a practical approach over the theoretical focus of standard AP economics.

More than 1,500 high schools across the country offer the class for the first time this year. Enrolled students can take an exam to earn college credit. This addition sits alongside a growing trend in financial education. Thirty-nine states now require a personal finance class for graduation. That is four more states than two years ago, according to the Council for Economic Education.

Hoover High School is the largest high school in Alabama, with a student body just under 3,000. The campus has wide open spaces and a four-year business academy that includes accounting and entrepreneurship. Many students in the AP class hope to boost their grade point averages. AP courses are often weighted higher than other classes. Sophomore Damola Kukoyi says the course helps her boost her GPA while learning a topic she loves.

Rachel Deschaine, a senior at Hoover, says the lessons apply to her daily life. Her father owned a trucking company, and her brother is studying economics. She sees the connections between class concepts and family conversations. Deschaine says business knowledge opens up opportunities for people who understand how it works. A Federal Reserve paper found that families in states with financial education requirements made better financial decisions during the pandemic.

Professor Jennifer Steele of American University notes that youth are good at using money responsibly when educated. The College Board administers the SAT and creates AP courses for public and private schools. The new business course aims to help students turn ideas into jobs. The exam will allow students to earn credit for the material covered in class.