The Senate Education Committee approved legislation that would codify a requirement that high school students be taught how to manage their own finances in a unanimous vote Monday.
If passed through both legislative chambers and signed into law, the bill would expand mandated instruction on financial literacy out of middle schools and narrow a regulatory requirement that mandates high school students be taught about money — just not necessarily their own.
“The amount of adults who have never had a personal finance class is astronomically high. They want to start a business, but they have no education, don’t even know how to do a simple budget,” said bill sponsor Sen. Angela McKnight (D-Hudson).
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Though state regulation requires ninth graders take at least a half-year course on financial, business, economic, or entrepreneurial literacy, the breadth of offerings that can satisfy the existing requirement means there’s no guarantee students will be taught to manage their money, numerous student witnesses told the panel.
Multiple students told lawmakers they had taken courses on securities or corporate finance but had not been instructed on how to manage their own finances or build their credit ratings.
“Personal finance education is heavily weakened when unrelated courses are allowed to substitute for financial literacy,” said Abigail Kim, a sophomore at Bergen County Technical High School. “As a result, students like me can graduate knowing the four types of derivatives but still be unaware of how to build credits responsibly.”
Some witnesses were concerned narrowing the requirement to exclude courses on entrepreneurship, among others, could harm some students by denying them courses better suited to their ideal career paths.
Anthony Scotto, director of curriculum and instruction for Hamilton Township’s school district, said students in his district took personal finance courses just “to get the course done.”
Allowing students to meet the requirement by taking advanced placement economics courses or popular courses on business law and civics or investments had served the district well, he said.
“If we were to place them in a standalone course just because they need to complete it, we would then no longer be allowing kids to access these courses that are really aligned to their passions and pathways,” Scotto said.
State law signed in 2019 requires students grades six through eight be given instruction on financial literacy.
A companion bill has not yet been heard by the Assembly Education Committee.
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