Senator Ross Pushes for Financial Literacy in Schools

Needham – Senator Richard Ross (R-Wrentham) is joining his colleagues in spearheading a new bipartisan effort to increase financial literacy education in Massachusetts schools. Economic knowledge, specifically financial literacy, is frequently cited as deficient among young adults of the Commonwealth. These are essential life skills for students of all ages to learn inside the classroom. Access to this knowledge needs to be available in order for future generations to become self-supporting citizens.

As of right now our nation’s schoolchildren lack basic economic education, especially in Massachusetts. Although Massachusetts public schools have yet again been ranked as first in the country, our schools lag in financial education. In the US, 20 states require that high school students take an economic class to graduate and 17 require a financial literacy course, Massachusetts does neither.

This divide was recently highlighted in a 100 question test passed around a business class at King Philip High School. This test was used to gauge the saving, investing, insurance, banking and inflation knowledge of the students, and came back with over half the questions answered incorrectly.

“Massachusetts has the top schools in the nation, from kindergarten to higher education. However, there is still work to be done,” said Senator Ross. “Financial literacy is virtually absent from school curriculums. This leaves many students in the dark when facing student loans, credit card interest rates, and more. I have sponsored and co-sponsored legislation that I believe will make a significant change in the education of Massachusetts students.”

Senator Ross co-sponsored a major piece of bipartisan legislation that will positively impact the education of Massachusetts students. The following bills have been referred to the Senate Committee on Ways and Means in which Ross presides.

Bill S.249 would authorize the Department of Elementary and Secondary Education (DESE) to assist Massachusetts schools in implementing objective standards regarding financial programs. This would include measuring the capacity of the existing mathematics, social sciences, technology, and a business departments to see where the new curriculum could be implemented. DESE will make available to school districts, charter schools, approved private day or residential schools, and collaborative schools a list of resources to aid in the selection of materials and curriculum on personal financial literacy. This bill would also include the authorization of a study conducted on current Commonwealth programs. This would provide a better understanding and gauge of the costs involved. The advisory committee will consult with insurance and investment firms, real estate firms, and bankruptcy attorneys to advise and oversee the development and implementation of standards and objectives on personal financial literacy.

In addition, S.249 increases funding to school financial curriculums, and focuses predominantly on understanding of loans, checkbooks, taxes, interest, credit cards, e-commerce, banking, retirement and housing. This would allow the Department of Elementary and Secondary Education to regulate and develop objective standards for financial literacy, and would integrate much of the new curriculum into existing math programs. This bill also calls for the establishment of an 11 member advisory committee, which would oversee the implementation, issues, and cost of the individual programs being issued state-wide.

###