By Bob Katzen
The House 155-0, approved and sent to the Senate a bill that would create a Financial Literacy Trust Fund for educating middle- and high-school students on personal financial literacy. The funds would be used for procurement, development and distribution of personal financial literacy educational resources and materials, as well as professional development opportunities, including training, seminars, conferences and materials for educators to use in teaching personal financial literacy.
Provisions include requiring school districts to provide instruction to middle- and high-school students on personal financial literacy, starting in the 2026 school year. The instruction would include earning and spending income; local, state and federal taxes; charitable giving; methods of payment; consumer protection; balancing ledgers and checkbooks; budgeting; long-term saving; simple and compound interest; planning for the future; using credit; making investments; risks of various financial instruments and basic diversification of assets; and rights and responsibilities of renting or buying a home or making other large purchases or investments.
“Too many young people graduate without understanding how credit, loans or savings work,” said Rep. Patrick Kearney (D-Scituate) “This bill gives them the foundation to make informed financial decisions that will impact their entire lives.”
“I taught Financial Literacy as an elective at Attleboro High School and my point was always long-term planning,” said Rep. Jim Hawkins (D-Attleboro). “Ten years ago it mattered that students learn about their credit score. It can affect not just buying a house but also car purchases and admission to schools and other programs. Now the economy is a threat since young people may want to buy a house but with $200,000 in student debt and $1,000 monthly car payments, they may have used up the limits of their indebtedness before even applying for a mortgage. And should they want to save up to a 20 percent down payment, that would be a challenge with $2500+ monthly apartment.”
(A “Yes” vote is for the bill.)
Rep. Christine Barber Yes Rep. Mike Connolly Yes Rep. Paul Donato Yes Rep. Erika Uyterhoeven Yes