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A bill, proposed by state Rep. Ryan M. Hamilton, would require high schools to teach students about responsible use of money and make the state put aside money to help underserved districts pay for the added education.
Last week, Hamilton, who represents Haverhill and Methuen, filed “An Act relative to personal financial literacy.” He said the legislation addresses “the gap in available financial literacy courses for students across the Commonwealth,” requiring all public high school students to learn how to earn and spend income, save money, use credit and invest in their financial futures.
“Understanding the important role money plays in our lives and knowing how to balance income, spending, debt and credit are critical skills for our young people. As a Commonwealth, it is our responsibility to ensure that our students leave high school prepared for the real world,” Hamilton said. If passed by both houses and signed by the governor, he noted, Massachusetts would join the 23 other states who provide standalone financial literacy courses to all high school students. He added, “At a time when graduates are faced with mounting college debt and a rapidly changing job market, we must do more to promote financial literacy through classroom and experiential learning.”
He pointed to studies that show only 5.7% of Massachusetts students are ensured a standalone financial literacy course during high school. Other students may receive some instruction on the subject, but in fragmented segments across courses and years.
The bill requires creation of a Financial Literacy Trust Fund, administered by the commissioner of elementary and secondary education. The money would “focus on underserved communities across the Commonwealth, including those school districts with high concentrations of economically disadvantaged students.” The money, which could be augmented by private donations and grants, could pay for professional development training; personal financial literacy educational resources and materials; collaboration with colleges and others; and establishing learning opportunities for students.
Hamilton said, “Underserved school districts are even more likely to lack comprehensive financial literacy education, further entrenching inequitable outcomes across socio-economic backgrounds.”