Financial literacy legislation sponsored by State Senator Jamie Eldridge was heard by the Joint Committee on Education earlier today. Senate Bill 204, “An Act Relative to Financial Literacy in Schools,” would require that personal financial literacy added to school curriculum.
“Today’s youth are bombarded with a multitude of financial options and responsibilities at an increasingly young age, yet many are ill-equipped to make informed decisions about financial matters," said Eldridge. "By teaching children the financial education basics in school, we will help them make educated financial decisions in the future, preventing future bankruptcies, foreclosures, and unmanageable debt.
“This is a result that’s good for society as well as for individuals,” Eldridge added. “Over the long term, the investment we make in teaching children financial literacy now will help strengthen our economy and prevent future economic crises. “
The bill would require the Department of Elementary and Secondary Education (DESE) to develop standards and objectives for personal financial literacy for grades K-12 in the mathematics curriculum. The curriculum would include information on loans, borrowing money, interest, credit card debt, online commerce, rights and responsibilities of renting or buying a home, saving, investing and planning for retirement, and banking and financial services.
One Acton kindergarten classroom has already been experimenting with this concept. Click here to read the Acton Patch story.
Treasurer Steve Grossman also testified today in support of financial literacy legislation.
“Students who do not know how to balance a checkbook, understand the principles of compound interest, and are uninformed about the dangers of credit debt are at a significant disadvantage in society and the workplace,” said Grossman. “Moreover, this need takes on even greater urgency for those who are about to attend college or are already enrolled. College loans will be one of the greatest debt burdens they will assume in the course of their lives, and sadly too few students are properly equipped to cope with the challenge.”
Also lending support to the bill was the Massachusetts Financial Education Collaborative (MFEC).
“Today’s youth are bombarded with a multitude of financial options and responsibilities at an increasingly young age, yet many are ill-equipped to make informed decisions about financial matters," said Eldridge. "By teaching children the financial education basics in school, we will help them make educated financial decisions in the future, preventing future bankruptcies, foreclosures, and unmanageable debt.
“This is a result that’s good for society as well as for individuals,” Eldridge added. “Over the long term, the investment we make in teaching children financial literacy now will help strengthen our economy and prevent future economic crises. “
The bill would require the Department of Elementary and Secondary Education (DESE) to develop standards and objectives for personal financial literacy for grades K-12 in the mathematics curriculum. The curriculum would include information on loans, borrowing money, interest, credit card debt, online commerce, rights and responsibilities of renting or buying a home, saving, investing and planning for retirement, and banking and financial services.
One Acton kindergarten classroom has already been experimenting with this concept. Click here to read the Acton Patch story.
Treasurer Steve Grossman also testified today in support of financial literacy legislation.
“Students who do not know how to balance a checkbook, understand the principles of compound interest, and are uninformed about the dangers of credit debt are at a significant disadvantage in society and the workplace,” said Grossman. “Moreover, this need takes on even greater urgency for those who are about to attend college or are already enrolled. College loans will be one of the greatest debt burdens they will assume in the course of their lives, and sadly too few students are properly equipped to cope with the challenge.”
Also lending support to the bill was the Massachusetts Financial Education Collaborative (MFEC).
