New Jersey Schools Must Teach ‘Financial Literacy,’ New Law Says

Reading, writing, arithmetic… and 401(k) accounts? New Jersey school districts will soon be required to provide “financial literacy education” to the state’s middle school students under a new bill signed into law Thursday.

In cooperation with Governor Phil Murphy and the New Jersey Legislature, Acting Governor Sheila Oliver signed A-1414 into law on Jan. 3 at a ceremony at President Barack Obama Elementary School (PS-34) in Jersey City.

The law – which gathered support from Democratic and Republican party members – will require school districts to incorporate “financial literacy instruction.” The lessons must emphasize budgeting, saving, credit, debt, insurance, investment and other issues associated with personal financial responsibility. (Read the full text here)

It will go into effect starting with the new school year in September (2019-20).

“Financial responsibility is an important acquired and learned life skill and with the increasing financial challenges millennials face, it is a skill that must be a necessary part of our educational curriculum,” said Oliver, a Newark native who previously served as a state assembly member in the 34th District.

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“Governor Murphy and I are happy to partner with the Legislature by signing this bill today to help New Jersey students learn how to effectively manage their personal finances and help set them up for success in life,” Oliver said.

Primary sponsors of the bill include Senators Dawn Marie Addiego and Ron Rice, and Assemblymembers Angela McKnight, Nicholas Chiaravalloti, Eliana Pintor Marin, Jamel Holley, Benjie Wimberly and Annette Quijano.

“I am delighted the financial literacy bill was signed into law, so students can receive education on key topics that they will need for the rest of their lives,” Senator Addiego said. “We must reach people early on in life so they can plan ahead and build a foundation of financial knowledge that will help them live an independent lifestyle.”

“One of the most important lessons a person can learn is how to manage their money. Many young people go into adulthood knowing little about finances, and end up making decisions that cost them in the long run,” Assemblywoman McKnight said. “Teaching our kids early about the importance of managing their money and making sound financial decisions can prevent them from making costly mistakes and set them on the right financial path.”

“This bill would allow financial education to be infused into currents subjects, helping younger students in Jersey City and across the state get a head start on understanding the very things that will impact them every day,” Jersey City Mayor Steven Fulop said. “Learning about credit, investing, savings and other financial aspects are critical tools to building a foundation and setting our students up to succeed. Financial literacy is already being taught at the high school level, and we’re excited to expand this to younger students at the start of the new school year in September.”

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