Is Massachusetts Doing Enough to Prepare Young People for Financial Security? The Answer, No.
Where does Massachusetts stand in the national review of state efforts to equip K12 students to understand and manage their financial futures? According to The Center for Financial Literacy’s Report Card, the state receives an alarming grade of F, a designation projected to persist through the 2028 graduating class. Adding to the concern, the most recent annual report from Next Gen Personal Finance reveals that over 25 states currently exceed Massachusetts in their commitment to financial education. Moreover, by 2030, it is anticipated that over 53% of all U.S. public high schools will mandate a standalone Personal Finance course before graduation. Massachusetts is falling behind.
On May 7, 2024, Midas Collaborative staff participated in a policy briefing convened by the Office of Economic Empowerment, a department under the State Treasurer’s office leading efforts to implement Bill S.327, titled An Act Requiring Financial Education in Schools. The briefing provided a platform for key stakeholders to address the pressing need for financial education in Massachusetts schools. Senator Patrick O’Connor, State Treasurer Deborah Goldberg, and Representative Ryan Hamilton were vocal champions advocating for state mandated financial education prior for all students.
During the briefing, guest panelist John Pelletier, Director of the Center for Financial Literacy at Champlain College, presented compelling data illustrating why Massachusetts is at risk of remaining the sole F-rated state unless immediate action is taken to support a mandate. The Center for Financial Literacy is renowned for its research in financial education and its National Report Card, which offers a comprehensive assessment of all 50 states' abilities to provide financial education to students.
The news wasn’t all bad. Massachusetts currently earns an “extra credit” score for its Economic Empowerment Trust Fund. In 2021, the State Treasurer’s Office issued a report on Personal Financial Literacy Education in the Massachusetts Public School System, prompting a state disbursement of funds in 2023 to establish financial literacy programs.
While these efforts signal progress, there remains much work to be done. On September 25, 2024, the Midas Collaborative will host its 16th Annual Financial Health & Wellness Summit at the Edward M. Kennedy Institute. This year’s theme, “Building Brains, Building Wealth to Achieve Financial Security,” will bring together thought leaders from across Massachusetts to explore the pivotal role of financial literacy and asset building in achieving lasting prosperity.
In the meantime, you can express your support (insert link) to ensure that all young people are equipped with the necessary skills for their financial futures.
Link to reports:
The Center for Financial Literacy’s Report Card: https://financialliteracy.champlain.edu/report-cards/2023-national-report-card-on-high-school-financial-literacy/
Next Gen Personal Finance Report: https://www.ngpf.org/annual-reports/
Personal Financial Literacy Education in the Massachusetts Public School System: https://www.mass.gov/info-details/report-on-personal-financial-literacy-education-in-massachusetts-schools.
Bill S.327 An Act Requiring Financial Education in Schools: https://malegislature.gov/Bills/193/S327